Environmental Damage in Punta Chame: A Former President Cortizo Donor, Linked to a Halted Tourism Project
The Ministry of Environment detected construction outside of authorized areas, damage to mangroves and turtle nesting areas, as well as sand extraction.
On the coast of Punta Chame, in the province of West Panama, the ambitious tourism project called “Beach Club House”, promoted by the Megamar Corp. Company, is now at the center of a complex legal, environmental and administrative plot that has set off alarms for the authorities. The irregularities detected this week led to the indictment of seven people for their alleged involvement in the illegal extraction of sand and environmental damage associated with the development of the real estate and tourism project.
According to the Ministry of Environment, the inspections carried out in the area made it possible to identify multiple anomalies, including the execution of works outside of the previously approved zones, the direct impact on mangroves and areas used as nesting sites for sea turtles, as well as the removal of sand in protected coastal sectors. Authorities warned that these interventions would have altered highly sensitive coastal ecosystems, prompting the opening of legal proceedings against those involved.
Chronology
The story of this development formally began on September 28, 2016, when Megamar Corp. obtained approval of its Category I Environmental Impact Study (EIS) through resolution DRPO-AEIA-RES-IA-186-2016. The documents held by the Ministry of Environment list Riad Salim El Hayek Tony as the legal representative at that time. The permit granted was limited to a specific hectare within a property of more than 22 hectares, designated for basic infrastructure such as a restaurant, swimming pool, and customer service areas. Although the environmental impact study was approved, the project was not developed at that time. It wasn’t until 2022 that the developers sent a letter to the Ministry of the Environment expressing their interest in reactivating the project.
In response to this request, the Ministry informed them that the environmental study remained valid and that any modifications to the project had to be reported to the institution beforehand. This latest episode occurred during the government of Laurentino Cortizo (2019-2024). An element appears that adds another dimension to the case: in the campaign donation records of the former president, reported to the Electoral Tribunal and published at the time, Riad Salim El Hayek Tony appeared as a donor, the same person who in 2016 served as legal representative of Megamar Corp.
According to Electoral Tribunal records, the donation was channeled through two companies: Luna Brillante SA, which contributed $135,000, and Megapolis Investment Group Inc., with a contribution of the same amount. Both companies were headed by Riad Salim El Hayek Tony.
The Irregularities
Three years later, on May 7, 2025, a new legal representative for the company, Patrocinio Boza, appeared and submitted a request to modify the original study. The objective was to expand the club’s offerings by adding 12 luxury cabins, each with its own bathroom and jacuzzi, as well as accommodations for people with disabilities, with the intention of transforming the initial concept into a more robust lodging complex. However, alarm bells rang when technicians from the Ministry of Environment conducted a field inspection on August 4, 2025.
During the tour, staff from the Environmental Performance Verification Department confirmed that the developer was not only planning the modifications, but had already begun earthmoving, filling, and leveling work on the site. The most critical finding of the inspection was the geographical discrepancy: the area where the works were being carried out did not coincide with the polygon approved in 2016. Through the use of high precision equipment it was determined that the developer had exceeded the legal limits, carrying out activities on land that did not have any current environmental management tool or prior impact assessment.
In response to this situation, the Ministry of Environment ordered the immediate and temporary suspension of the project. The agency emphasized that carrying out activities without environmental viability poses a direct risk to the coastal ecosystem and constitutes a breach of the commitments originally made by the company. Technical reports from geomatics experts reinforced the illegality of the construction by verifying GPS points on the ground. The analysis revealed that the work was encroaching on beach and natural sand areas outside the approved direct influence zone, invading spaces that should have remained protected according to the 2016 regulations.
Gravity
The seriousness of the case led the authorities to order that copies be sent to the Public Prosecutor’s Office, in order to investigate the possible commission of environmental crimes typified in the Penal Code, elevating the conflict from an administrative dispute to a more significant judicial process. The administrative outcome occurred on September 18, 2025, when the Regional Directorate of Panama West issued resolution DRPO-SEIA-RECH-005-2025. In this administrative act, the Ministry of the Environment decided to summarily reject the request to modify the Environmental Impact Assessment (EIA), considering that the proposed changes would generate new impacts in areas not evaluated and outside the legal scope of the original project.
Currently, the “Beach Club House” project remains stalled and under the shadow of criminal liability. In a multiple guarantee hearing held on March 8 in West Panama, Judge Ruth Aizpú legalized the arrest of seven people and formally charged them with the alleged commission of crimes against the environment and land use regulations. Meanwhile, the administrative processes continue at the Ministry of Environment, and the entity has ordered the indefinite suspension of the work. Attempting to contact the company’s two legal representatives at the telephone numbers listed in the environmental impact study, namely Riad Salim El Hayek Tony and Patrocinio Boza; neither answered the calls.
Currently, Megamar Corp.’s management structure is headed by Boza, who is listed as director, president, treasurer, secretary, and subscriber of the company. Carolina El Hayek Farfud also appears on the board of directors, serving as the company’s resident agent and director. The list of directors is completed by Edma El Hayek Farfud, also as a director, while Silverio Cedeño is listed as a subscriber, according to available corporate records.
