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.
Economic and Social Impacts
The $5.1 billion loss amounts to almost 6% of Panama’s gross domestic product (GDP) in 2024, exceeding the total yearly budgets allocated to education and health, along with the revenue the Panama Canal provides to the national treasury, while insufficient public investment has also pushed indigenous communities, including the Ngäbe Buglé region, into severe marginalization that has resulted in numerous avoidable 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 Could Have Been Achieved?
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 eroded public trust in institutions but also compromised the ethical fabric of public administration. The solution requires structural reforms to enhance transparency, punish corruption, and restore integrity to 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
