What Happened
A guarantees judge in Panama has charged seven former officials from the Belisario Porras corregimiento board with embezzlement in a case tied to about $8 million in public funds. The money came from the National Decentralization Authority and was intended for social works, but prosecutors say it was used to pay services to officials, some of whom also worked at the Ministry of Housing and Territorial Planning and the National Assembly.
The hearing ran from late morning into the night at the Criminal Justice System in San Miguelito. Prosecutor Joana Osorio outlined an alleged scheme that operated between 2019 and 2024, during the period when central government assistance funds were being distributed in response to the COVID-19 pandemic.
How the Alleged Scheme Worked
According to the prosecution’s presentation, some people on the Belisario Porras communal board held posts simultaneously in the board, Miviot, and the National Assembly. Among those mentioned was a woman who is the wife of a judge.
Osorio also referred to an audit by the Comptroller General’s Office that found some officials had received between 43 and 80 checks, with payments ranging from roughly $86,000 to more than $130,000 for supposed services to the board. Some workers reportedly received $2,000 twice in the same pay period, drawing scrutiny from auditors.
The audit states that about $7 million went directly to paying services for officials with no record supporting the work. Prosecutors said no documents were found to justify those disbursements. In total, investigators say funds reached about 240 people, yet no paperwork has been produced showing service delivered to the community.
Role of the Former Representative
Prosecutors also said the late representative of Belisario Porras, César Caballero, submitted up to 36 requests to the National Decentralization Authority for more than $100,000 each, allegedly to carry out works in the corregimiento. Between 2009 and 2014, Belisario Porras became the communal board that received the most decentralization funds.
Caballero, who was assassinated on November 7, 2023, was the representative during that earlier period, which prosecutors highlighted as part of the broader history of public funding in the corregimiento.
Court Orders and Defense Response
The judge declared the arrest operation carried out last Wednesday illegal, saying the women could have been brought into the process by another route. She also said the prosecution did not justify the conduction order used against the seven women.
Still, the judge accepted the charges for Yileikis Ramírez, Yazmin Rebolledo, and Heidi Torres and ordered them held in pretrial detention. Yibelis Rojas was ordered to report on the 15th and 30th of each month and to stay away from the Belisario Porras communal board offices. Elena De Gracia and Prudencia Rojas were ordered to remain under house arrest, while Jakeline Morales must report once a week.
Defense lawyers Jacinto González and Holanda Polo, along with Jessica Martínez, said the investigation has been underway since 2024 and that the prosecution could have summoned their clients to give statements. They argued the seven women are not responsible for the alleged diversion of the $7 million because the administrative controls were in the hands of the corregimiento representative and the treasurer. The defense also said the employees worked during the COVID-19 crisis, when controls were looser because of the emergency conditions. Lawyers for several of the accused announced appeals against the precautionary measures.
Why the Case Matters
The case places renewed attention on how decentralization funds were managed during the pandemic, when governments across the country rushed resources to communities. It also raises questions about oversight in local boards that handled public money for social assistance and public works, especially in a period marked by crisis spending and weakened controls.