---
title: "Etesa says it will hold back payments to firms tied to active court cases"
date: 2025-12-17
modified: 2026-04-22
author: ""
url: https://panamadaily.news/etesa-halts-payments-brands-linked-firm/
categories:
  - "Business"
  - "Politics"
tags:
  - "ETESA"
  - "government payments"
  - "Héctor Brands"
  - "National Assembly"
  - "Public Ministry"
---

# Etesa says it will hold back payments to firms tied to active court cases

## What Happened

Panama’s state-owned transmission company Etesa announced that it will not make payments to companies linked to ongoing judicial investigations until those cases are resolved. The decision came hours after the company defended before the National Assembly Budget Committee a $13 million transfer request to pay debts owed to private firms.

The statement follows scrutiny over one of the companies included in the payment list: Multi Servicios Modernos, S.A., a firm linked to former PRD lawmaker Héctor Brands, who is under investigation for alleged unjust enrichment and money laundering.

According to the figures presented to lawmakers, Etesa owes Multi Servicios Modernos $441,375 for cleaning services. The company’s legal representative is Elvis Enrique Rodríguez, who is also detained in the same case. Rodríguez previously led the Movement Nueva Generación foundation created by Brands in 2000.

## Other Companies on the Payment List

Etesa also identified several other private firms slated to receive payments as part of the transfer request. The list includes Consorcio Aurora, S.A. for $3,389,480; Toucan Group, Inc. for $530,426; Construcciones y Materiales El Roble, S.A. for $338,387; La Laguna de Texas, S.A. for $261,482; and CU2 Ingenieros, S.A. for $561,717.

During the Budget Committee session, lawmakers questioned the company’s handling of the information and the timing of the request. Janine Prado of the Vamos caucus said they had to push Etesa to identify the firms involved and described the process as opaque. Her colleague Manuel Samaniego also raised concerns, though he later voted in favor of the transfer.

## Transparency and Legal Concerns

In its statement, dated Tuesday, Dec. 16, Etesa said it is fully cooperating with the Public Ministry and reaffirmed its commitment to transparency. The company said it will not carry out payments related to services already provided while the judicial proceedings remain unresolved.

Roy Morales, Etesa’s general manager, told lawmakers the institution was working with prosecutors. When Prado asked who represented Multi Servicios Modernos, Morales said the company did not have that information available.

The announcement adds a new layer to the debate over how state entities should handle contracts and payments involving firms under criminal investigation. Lawmakers backing the transfer argued that honoring debts is necessary to preserve legal certainty and maintain trust among companies that do business with the state.

## Why It Matters

The case places Etesa at the center of a broader discussion about public spending, contract transparency and the risks of paying firms linked to active investigations. While the budget committee approved the transfers, the dispute underscores growing political pressure for clearer oversight in state procurement and debt settlements.

Committee chairman Eduardo Vásquez said failing to pay outstanding debts could damage confidence in the state’s contracting system. Three lawmakers voted against the measure: Prado, Panameñista Francisco Brea and Marta Sandoya, a substitute for PRD lawmaker Crispino Adames.