Panama’s Prosecutor for Operation Pandora Anticipates an Increase in Those Involved:  There are Victims and Financial Loss Including a House Seizure in Chitré

Panama’s Operation Pandora prosecutors anticipate the multi-million-dollar tax credit fraud network could expand to implicate up to 50 people. The scheme against the Dirección General de Ingresos (DGI) has caused over $40 million in state losses, featuring asset seizures—including a house in Chitré—and multiple arrests of public officials and private actors.

Investigation Scope and Financial Impact

• Expanded Targets: Prosecutors estimate the total number of individuals linked to the corruption ring may reach 50.

• State and Institutional Victims: The National Treasury and the DGI are recognized as primary victims of the lost tax revenues.

• Asset Seizure: Authorities have moved to freeze and seize properties tied to illicit profits, including a notable house seizure in Chitré.

Nature of the Fraud Scheme

• System Manipulation: Suspects allegedly exploited vulnerabilities in the digital E-Tax 2.0 system.

• Tax Record Erasure: Legitimate taxpayer accounts showing fulfilled obligations were erased or altered to display unapplied credit balances.

• Illegal Credit Sales: Fabricated tax credits were transferred and sold illegally to financial entities and third parties for major profits.

Those Charged in Operation Pandora will Remain in Custody

The High Court of Appeals upheld the provisional detention measures for five defendants in Operation Pandora.  Furthermore, the court ordered the provisional detention of Lupo González and maintained the house arrest measure in favor of Karen Pitty.  The investigation into the fraudulent transfer of tax credits is targeting another 29 people who are also part of the criminal network, bringing the number of those under investigation to 50.  So far, it is estimated that the network caused financial damage to the State of approximately $40 million, although that figure could change as the investigations progress.

The Public Prosecutor’s Office appealed the precautionary measures applied to several of the defendants and asked the Superior Court of Appeals to order their provisional detention to prevent the destruction of evidence.  The confessions of several defendants allowed the prosecution to reconstruct the money distribution scheme and expand the investigations into the network that operated within the DGI.