What Happened
Judge Yazmín Jaén filed charges of alleged peculado doloso against the former regional director of the Instituto para la Formación y Aprovechamiento de los Recursos Humanos (Ifarhu) for Panamá Este and against a merchant linked to the Programa de Asistencia Social Educativa Universal (PASE-U). Prosecutors say the case involves the irregular handling of $145,000 in program funds.
The hearing was held at the judicial offices in Plaza Ágora. The judge ordered house arrest for the former Ifarhu official, along with a travel ban and a prohibition on approaching Ifarhu offices. The merchant was ordered to report periodically to authorities on Mondays and Thursdays, surrender his passport, and refrain from contacting Ifarhu staff.
The Fiscalía Anticorrupción has appealed the precautionary measures applied to both defendants, arguing the alleged crimes are serious and that both individuals had active participation in the conduct under investigation.
Details of the Investigation
Investigators say they found multiple checks that appear to have been endorsed to third parties who were not students and subsequently cashed at businesses in the eastern area of Panama City. The anticorruption office opened the probe in 2022 after a complaint from Ifarhu and an audit report from the Contraloría General de la República.
The audit reportedly documented irregularities in 414 checks and 84 Clave Social cards tied to Ifarhu and PASE-U scholarship programs handled at the Ifarhu regional office for Panamá Este. Prosecutors say in some cases checks continued to be issued in the names of beneficiaries who had already finished their studies and were later collected by third parties; the checks were allegedly endorsed to merchants rather than to the students who were the intended beneficiaries.
Background
The PASE-U probe follows earlier enforcement actions. In February 2025, five people were convicted and sentenced to between 48 and 60 months in prison for creating profiles and changing PIN numbers of PASE-U beneficiaries, allowing illicit redemption of funds at local shops. In April 2025, authorities also imputed 16 more people in connection with a scheme to divert Ifarhu funds; prosecutors then said one official could have altered up to 7,000 PASE-U PINs.
What This Means
The latest imputations underline continuing concerns about controls over scholarship disbursements and the vulnerability of digital-security measures such as PINs. The anticorruption office’s appeal signals it may seek stricter measures as the case proceeds. The investigation, and past convictions, could influence further audits, internal controls at Ifarhu and closer judicial scrutiny as prosecutors develop the case.