Community Boards may dodge multi-million fraud charges

DETAILS OF the fraudulent handling of $240 million by local community boards in the Martinelli era, (2009-2014) may not be known in time and those responsible will continue unpunished.

 The fifth criminal judge, Enrique Paniza issued a provisional dismissal after reviewing the summary referred to him by the First Anticorruption prosecutor in the investigation into the irregular handling of $240 million dollars from 153 community boards.
On May 5 Paniza, said he made the decision in the absence, in the file, of the audit reports of the Ministry of Economy and Finance (MEF) and the Comptroller General of the Republic.
He said the facts presented do not allow him to be certain that an offense was committed. “… it follows that there is not enough time for evidence to prove the commission of an offense against the public administration”.
However Paniza said that when audit reports of the MEF and the Comptroller are provided, prosecutors may be able seek the reopening of the investigation to establish possible responsibilities.
He also stated in his ruling that his office is only competent to hear cases of community boards that are within the judicial district of the First Judicial Circuit of the Province of Panama and the rest of the cases relating to community boards in Chiriqui , Los Santos, Arraiján, La Chorrera, Columbus, San Miguelito Chitre, Herrrera, Darien and Veraguas are from other jurisdictions.
The investigation of the misuse of funds by the First Anticorruption Prosecutor began on June 13, 2014 following the publication of reports of the National Assembly transferring funds to community boards and municipalities.
The MEF detected in July that 153 community boards received funds above what is permitted by law. They should have received $84 million from the National Program for Local Development (Pronadel) during the period 2009 -2014 but they got $240 million, ie $156 million over the top..
The community boards were hiding millions of dollars transferred to deputies, particularly during the last election campaign.
The MEF report revealed that between 2013 and 2014 $76 million worth of items were transferred to 113 municipalities and 20 community boards for use by deputies.
The transfer of money was approved by the MEF with the alleged aim of benefiting the residents of those districts. Everything was done quietly, almost secretly reports LaPrensa.
On Wednesday February 19, in the midst of th electoral process, the MEF authorized the transfer of $12 million to 49 community boards. Community Board Leone Beach and Rio de Jesus received $1 million each.
According to a decree of the then Comptroller, Gioconda Torres de Bianchini, , community boards could charge up to 5% for handling items of the deputies. In practice, the councilors and deputies agreed to the payment of 10%. Community boards that handled most money were Leona Beach in La Chorrera [$6 million] and Rio de Jesus in Veraguas, which received $8.2 million
In Rio de Jesus items were transferred to Democratic Change (CD deputies) Carlos Afu, ($1 million) and Noriel Salerno ($2 million dollars. Both were re-elected.
The story was repeated in other locations.
Of these funds nothing was used to solve the social needs of communities.
Research by La Prensa in Rio de Jesus and Playa Leone highlighted the shortcomings of social works in these villages but millions of dollars of the funds were used by the deputies for their reelection campaigns.