An exhaustive analysis of 90 emblematic corruption cases in Panama reveals the devastating economic and institutional impact on the country. Between cost overruns, irregular concessions, and fund diversions, it is estimated that over $5.1 billion has been lost from the public treasury over the last two decades.
The Price of Corruption
The investigation brings forward two illustrative cases. The first involves the Odebrecht scandal, where budget inflation in public infrastructure projects from 2006 to 2019 surpassed $2 billion, positioning it as the most significant corruption incident in recent history. The second relates to the Panama Ports Company (PPC) concession, which generated losses exceeding $1.2 billion as a result of contractual changes that proved disadvantageous for the State.
The remaining 88 cases encompass misdirected social program funds, substandard road construction, overpriced procurements, and various forms of clientelism, amounting to a further $1.5 billion in losses.
Economic and Social Impacts
The $5.1 billion lost represents nearly 6% of Panama’s gross domestic product (GDP) in 2024. This amount surpasses the combined annual budgets for education and health, as well as the contributions from the Panama Canal to the national treasury. The lack of public investment also left indigenous communities, such as the Ngäbe Buglé region, in extreme exclusion, leading to multiple preventable tragedies.
Institutional Hurdles
Impunity further aggravates the situation, as among the 90 cases reviewed, only about a dozen led to final convictions, while the remainder progressed sluggishly or became stuck within a hindered judicial framework. Experts note that fragile institutions, limited resources, and a clear lack of political commitment have allowed those responsible to evade meaningful accountability.
What Might Have Been Accomplished?
With the $5 billion gone, essential infrastructure like bridges, roads, and school transport could have been developed to avert human tragedies and ease social exclusion in marginalized communities.
Corruption in Panama has not only weakened public confidence in government bodies but has also undermined the ethical foundations of public governance, and addressing it calls for comprehensive reforms that strengthen transparency, enforce accountability, and rebuild integrity within public office.
Source provided by: La Estrella de Panamá https://www.laestrella.com.pa/panama/nacional/panama-dos-decadas-de-corrupcion-y-mas-de-5-mil-millones-en-fondos-publicos-perdidos-FM18633767
