Panama state lost over $14 million in backpack scam

Six companies ripped off $14,229,527 from the Panama state for the purchase and distribution of school backpacks between the years 2012-2014 according to a report of the country’s Comptroller

 The companies Hialing Corporation, Vafepa SA, APM Supplies, Galbedusa Panama SA, Unitel Trader SA,, and Consultioria SA, caused “economic harm to the state in the acquisition of backpacks for the National Assistance Program (PAN) and the Ministry of Education (MEDUCA).
Several of these companies should have handled the transport, delivery and unloading of school bags in different sectors, but failed to comply with established contracts, as reflected in the report.
This situation meant that school principals and parent associations had to remove backpacks from collection centers that were installed by the companies “We have completed the audit related to the purchase of backpacks by the Meduca and PAN, consisting of more than 2000 folios, and in which sufficient evidence of financial loss to the nation is found,” said Comptroller General on June 11 when he gave the report to the Attorney General says La Prensa.
The case is being investigated by the Second Anti-Corruption Prosecutor, Vielka Broce.