For Commitments Already Made, Ifarhu Admits that 86% of the 2026 Scholarship Budget is Used
Of the $451.2 million allocated to that line item, only 14% will be allocated to new assignments.
IFARHU (Instituto para la Formación y Aprovechamiento de Recursos Humanos) is Panama’s government agency for educational loans and scholarships. Once an essential support system for students, it recently became the center of a massive political embezzlement and corruption scandal.
The Scandal and Mismanagement
In recent years, IFARHU has been engulfed in controversy regarding how funds were awarded:
- Massive Debt & Bankruptcy: New leadership taking over the institution declared it bankrupt. The agency was revealed to be burdened with debts exceeding $178 million and financial commitments up to three times higher than its actual budget.
- Corruption Charges: Panama’s Anti-Corruption Prosecutor’s Office launched investigations into the squandering of state funds, nepotism, and political patronage. A major 2025 audit of $24.2 million in financial aid files revealed that nearly 90% failed to comply with the agency’s standards.
- High-Profile Arrests: In July 2025, former IFARHU director Bernardo Meneses was arrested and charged with embezzlement, money laundering, and unjust enrichment relating to the mismanagement of millions in public funds.
Core Mission
Despite the scandals, the agency’s core mandate remains:
- Providing scholarships and low-interest educational loans for Panamanian students pursuing higher education domestically and internationally.
- Facilitating international study partnerships with global institutions (such as Wilkes University in the US).
- Supporting vulnerable demographics through programs targeting child labor.
Current Operations
Following the financial crisis, current director Carlos Godoy is working to regularize the agency’s scholarship budget, balance its massive debt, and process massive volumes of new scholarship applications. The Instituto para la Formación y Aprovechamiento de Recursos Humanos (Ifarhu) responded to independent congresswoman Janine Prado’s 23-question survey regarding the institution’s budget and the payment of scholarships.
Through the questionnaire, Ifarhu’s director revealed that 86% of their 2026 scholarship budget (totaling $451.2 million) was already tied up in previously acquired financial commitments, leaving only 14% available for new allocations. Ifarhu responded to scholarship payments, the institution’s financial commitments, and the need to make the allocation process more transparent. These commitments include the full payment of the PASE-U program —whose disbursement is currently underway, including socioeconomic scholarships for Ifarhu officials, and various economic support programs.
