368 probed in communal boards $25 million scam

Some368  people, including lawmakers, are under investigation for possible embezzlement for diversion of funds allocated to community boards.

Anticorruption prosecutor, Adecio Mojica said the investigation began in 2014 and after preliminary probes, an audit report was requested from the Comptroller General which was delivered in March 2018.

As the case received a provisional dismissal, a reopening of the case was requested, as the Comptroller’s audit report revealed an injury nationwide of over $25 million.

In the investigations, it was established that the modus operandi to commit the illicit use of transfers from the Ministry of Economy and Finance (MEF), through the National Budget Directorate to 186 Communal Boards.

According to the prosecutor, the transfers had a primary purpose, to provide assistance to people with limited resources, but in practice that did not apply. Services that were not provided were contracted, records were not provided to justify the use of the money and this was repeated in many  Boards.

He also mentioned that in many cases assistance was requested for food, school supplies,  and medical services, but in almost none of the cases is there documentary evidence showing the money was well used.

In of Bocas del Toro, it has been determined that there was a scam of over  $5 million for assistance purposes that did not occur.  

So far, nationwide there are more than 40 defendants The file is paralyzed because the Second Court is expected to resolve appeals of an order, issued by the Fifth judge in which the complex case was granted. In other words, the prosecutor was given an additional year to continue investigating.

The main fact, according to the prosecutor is the bad administration of public flows. The transfers that were made to the communal boards. The law states that transfers must be through MEF and Municipalities. The municipalities remit money to the communal boards. In the cases under investigation, the funds went directly to the Communal Boards.

No office
Inspections in remote places showed there are boards without  an office, but they did have an account with a large amount of money that should be used for the benefit of the community but was used or other things stayed or returned to Panama

In the investigation, the audit report does not relate to deputies, but it shows that each communal board had an alphanumeric code, linked to a deputy They will be subjected to investigation because they were participants in the embezzlement.