Mayor Stefany Peñalba is on the Hot Seat Again. Council Members Demand to Know What Happened to Nearly a Million Dollars of Metro Funds in Arraiján Panama.
In addition, the district representatives asked the Comptroller’s Office to investigate what they consider an ‘illegal withholding’ of funds intended for the district’s community boards.
Nearly a million dollars that the Panama Metro delivered to the Municipality of Arraiján for works related to the Juan Demóstenes Arosemena community board remains without a clear explanation about its destination. Yohana Saldaña pictured below left, president of the Municipal Council wearing a presidential inauguration support ribbon, told news media that Mayor Stefany Peñalba has not explained what happened to the funds. Therefore, the local government requested an audit from Comptroller Anel Flores to determine what happened to the money and whether it was used for its intended purpose. Pictured on the right is Shirley Castañedas (frequently referred to as Shirley Castañeda) a Panamanian politician and attorney who serves as the President of the National Assembly of Panama.
Of the total amount, just over $900,000, some $211,000 were earmarked for the purchase of land and the construction of the headquarters of the Juan Demóstenes Arosemena Community Board. The funds were also earmarked for an amphitheater, a gazebo, and an information plaza. According to Saldaña, the municipality received the money over a year ago, but the district representative, Raquel Murillo pictured below, has not yet received the funds to carry out the projects.
“What she was supposed to do was buy the land and build it more than a year ago,” Saldaña explained. The official maintains that the municipal administration has not clarified what happened to those funds.
Another Amount Under Question.
This case adds to another $585,000 that, according to Saldaña pictured below on the right, was deposited by Más Móvil to finance video surveillance cameras in various locations in Arraiján. The president of the Municipal Council stated that the Peñalba administration has also failed to account for that money.
$900,000
Funds delivered by the Panama Metro to the Municipality of Arraiján.
$211 Thousand
Intended for the purchase of the land and construction of the Juan Demóstenes Arosemena community board.
$585,000
To finance video surveillance cameras in Arraiján.
50%
Percentage of outstanding budget transfers.
Both cases involve funds allocated during the previous administration. According to Saldaña, these commitments became the responsibility of the current municipal government. The council now hopes that the audit requested from the Comptroller’s Office will clarify how both sums were handled.
Funds for the Boards.
In addition, the district representatives asked the Comptroller’s Office to investigate what they consider an “illegal withholding” of funds intended for the district’s community boards. According to the complaint filed in Note CM/2026-395, dated September 30, 2026, local authorities are receiving only 50% of the budget transfers necessary for their operational and administrative functioning. The representatives consider this a drastic reduction, implemented without legal basis or the proper approval of the municipal council. This media outlet attempted to obtain a statement from Peñalba, but, at the time of publication, had not received a response.
“The municipal administration has not clarified what happened to those funds.” says Yohana Saldaña, president of the Municipal Council of Arraiján.
The request requires determining the legal basis for the withholding, evaluating the appropriateness of the procedure in relation to current municipal finance regulations, and establishing the corresponding adjustment actions to immediately restore the flow of 100% of the resources allocated for the current fiscal year.
