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 Cost 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.
Socioeconomic Effects
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 Hurdles
Impunity further aggravates the situation, as among the 90 cases reviewed, only about a dozen led to final convictions, while the remainder progressed sluggishly or became stuck within a hindered judicial framework. Experts note that fragile institutions, limited resources, and a clear lack of political commitment have allowed those responsible to evade meaningful accountability.
What Might Have Been Accomplished?
With the $5 billion gone, essential infrastructure like bridges, roads, and school transport could have been developed to avert human tragedies and ease 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: 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
