What Happened
The Court of Accounts has declared former General Directorate of Revenue (DGI) director Luis Enrique Cucalón, businessman Cristóbal Salerno and the company Cobranzas del Istmo financially liable for $4.4 million after finding irregularities in a contract to collect delinquent taxes.
Details of the Court Ruling
The ruling, made public on February 12 and signed by magistrates Álvaro Visuetti, Pablo Chen Vallarino and Rainier del Rosario Franco, holds the three parties responsible for harming state funds through irregular and negligent management of public economic resources. The court found faults in the execution of an August 2010 contract among the DGI, the Ministry of Economy and Finance and Cobranzas del Istmo to manage collection of delinquent taxes.
According to the Court of Accounts, Cobranzas del Istmo — owned by Salerno — was contracted for $29.5 million as a debt collection manager. A Comptroller General audit identified serious irregularities, including withheld collections that were not paid to the State, collections paid at reduced amounts while the company still received commissions, commissions charged outside contractual percentages, commissions received for arrears that were not managed, and duplication in commission cancellations.
Salerno agreed to return $20.6 million, and authorities recovered an additional $6.6 million through the seizure of accounts linked to Cucalón, leaving a liquid shortfall of $2.2 million. Interest applied to that balance resulted in the $4.4 million final sum the court ordered be paid. The court also ordered precautionary measures on the defendants’ assets up to the amount of the sanction.
Background
The ruling follows earlier criminal proceedings. In September 2024, the First Liquidation Court of Criminal Cases sentenced Cucalón and Salerno to 100 months in prison for money laundering, finding they participated in a complex scheme that sought to introduce illicit funds into the national financial system; that sentence is pending appeal before the Criminal Chamber of the Supreme Court of Justice. Earlier, in 2018, Cucalón was declared criminally responsible for embezzlement and corruption of public servants and received a 96-month sentence, while Salerno’s earlier 48-month agreement was replaced by a fine as part of processes linked to the irregular tax collection contract.
What This Means
The Court of Accounts’ decision ties fiscal irregularities discovered in an audit to financial liability for both public officials and the contracted company. Beyond the immediate financial recovery orders and asset precautionary measures, the ruling underscores scrutiny of public contracting and tax collection processes in Panama. The criminal sentences and ongoing appeals indicate that legal consequences for those involved are still unfolding.