A thorough review of 90 landmark corruption cases in Panama exposes the severe damage inflicted on the nation’s economy and institutions, indicating that more than $5.1 billion vanished from the public coffers over the past twenty years due to inflated contracts, questionable concessions, and the misappropriation of funds.
The Price of Corruption
The investigation highlights two emblematic cases. The first is the Odebrecht scandal, in which cost overruns in public works projects between 2006 and 2019 exceeded $2 billion, making it the largest corruption case in recent history. The second concerns the Panama Ports Company (PPC) concession, which caused losses of over $1.2 billion due to unfavorable contractual modifications for the State.
The remaining 88 cases include fund diversions in social programs, poorly constructed roads, inflated purchases, and acts of clientelism, totaling an additional $1.5 billion in losses.
Economic and Social Impacts
The $5.1 billion lost represents nearly 6% of Panama’s gross domestic product (GDP) in 2024. This amount surpasses the combined annual budgets for education and health, as well as the contributions from the Panama Canal to the national treasury. The lack of public investment also left indigenous communities, such as the Ngäbe Buglé region, in extreme exclusion, leading to multiple preventable tragedies.
Institutional Challenges
The situation is worsened by impunity. Of the 90 analyzed cases, only a dozen resulted in firm convictions, while most advanced slowly or stalled in an obstructed judicial system. Experts suggest that weak institutions, lack of resources, and an absence of political will have perpetuated the lack of accountability for those responsible.
What Might Have Been Accomplished?
With the $5 billion lost, critical infrastructure such as bridges, roads, and school transportation could have been built to prevent human tragedies and reduce social exclusion in marginalized communities.
Corruption in Panama has not only weakened public confidence in government bodies but has also undermined the ethical foundations of public governance, and addressing it calls for comprehensive reforms that strengthen transparency, enforce accountability, and rebuild integrity within public office.
Source provided by: La Estrella de Panamá https://www.laestrella.com.pa/panama/nacional/panama-dos-decadas-de-corrupcion-y-mas-de-5-mil-millones-en-fondos-publicos-perdidos-FM18633767
