What Happened
The University of Chiriquí (Unachi) has experienced a dramatic expansion in public spending during the 13 years of Etelvina Medianero de Bonagas’s tenure as rector, with its budget rising from $36.4 million in 2013 to a projected $80.7 million in 2026. Across functioning and investment budgets from 2013 through 2026, the university is set to have managed about $988.2 million, a scale that makes her administration the most financially significant period in the institution’s recent history.
The increase was steady at first and then accelerated. Unachi’s budget reached $40.3 million in 2014, $44.7 million in 2015 and just over $51 million in 2016. By 2017 it climbed to $57.7 million, then $60.3 million in 2018 and $74.3 million in 2019. Even during the pandemic years, the university remained on a high spending path, with $88.4 million in 2020 and $84.5 million in 2021. The budget later rose to $92.6 million in 2022, nearly $100 million in 2023 and a peak of $106 million in 2024.
Why It Matters
Unachi is one of Panama’s main public universities outside the capital, and its budget growth has made it a major case study in how higher-education funding is allocated and managed. The university’s financial size has also made it a focal point in the broader national debate over public spending, political influence and accountability in state institutions.
Support for Medianero de Bonagas’s leadership was especially visible during the Laurentino Cortizo administration, when members of the Democratic Revolutionary Party defended both her management and her re-election. That political backing helped sustain the rector’s position at a time when the university was expanding sharply in both operating costs and payroll obligations.
A Sharp Turn in 2025 and 2026
The trend reversed after José Raúl Mulino took office. In 2025, Unachi’s budget fell to $72 million, and the 2026 projection stands at $80.7 million. The decline has exposed how dependent the institution became on large public transfers and how difficult it now is to maintain the same scale of operations.
The university’s internal costs remain heavy. Its payroll is estimated at about $6 million per month, a burden that has intensified criticism over staffing, promotions and hiring practices. Faculty, administrative workers and students recently staged a protest demanding the rector’s resignation and a full financial explanation for the institution’s condition.
What the Internal Finances Show
At a meeting of the administrative council on April 13, 2026, university officials discussed a severe cash-flow problem. Planning director Iris Fuentes said the 2026 budget would only cover administrative salaries through June and teaching salaries through July. The council approved a request for an additional $33.6 million in financing from the Ministry of Economy and Finance to cover payroll for the second half of the year.
The university is also drafting a 2027 budget of $118.8 million, which would help cover staff obligations and unpaid benefits, including seniority bonuses and vacation liabilities that are already close to $7 million. But the national government has set a ceiling of $72 million for 2027, which would force Unachi to operate at roughly the same level as in 2025.
Operational Strain and Future Projects
Unachi’s day-to-day operations increasingly depend on revenue from master’s and postgraduate programs, which help pay for electricity, water, internet and office supplies because state funds are earmarked mainly for personal services. Decans have said the shortage has become so acute that professors have had to contribute money to buy gas for air conditioners.
Investment funding is also tight. The 2027 projection leaves only $3.7 million for investments, putting projects such as a new law school building in limbo. Under the current planning horizon, that project would not receive initial funding until 2028.
As pressure builds, the university is under scrutiny from the National Authority for Transparency and Access to Information, the Public Ministry and the Comptroller General over alleged nepotism, hiring practices, promotions and public fund management. For Panama’s public university system, Unachi’s case is now a warning about what happens when rapid budget growth is not matched by strong controls and financial discipline.