What Happened
The National Assembly’s Budget Committee approved a $30 million transfer requested by the National Decentralization Authority to help cover part of the debt owed to municipalities and corregimiento boards from property tax revenue.
The session turned tense when the authority’s director, Roxana Méndez, and Bocas del Toro lawmaker Benicio Robinson, president of the Democratic Revolutionary Party, exchanged accusations over how decentralization funds have been handled and investigated.
Robinson Raises Political Accusations
Robinson used his intervention to accuse Méndez of focusing on investigations involving PRD-linked mayors and representatives while failing to address the administration of decentralization and the delivery of funds to local governments. He said more than $390 million had not been transferred to decentralization to allow it to do its work.
He also argued that the cases tied to the so-called parallel decentralization scheme were being used to target PRD officials, and expanded that criticism to include members of Cambio Democrático and the Panameñista Party. Robinson further questioned why the audits were not being handled directly through the Comptroller General’s Office.
Méndez Defends the Investigations
Méndez rejected the attack and defended the referrals her agency has made to the Public Ministry. She said the authority sent files involving $320 million in funds that were used without justification, and added that some cases have already been supported with documentation.
According to Méndez, the Public Ministry is handling the $238 million that could not be substantiated. She also said previous administrations did not fully recognize the real growth in property tax collections, arguing that the current government is the first to acknowledge the full amount that should be considered.
She defended the distribution formula for decentralization money as well, explaining that it takes into account revenue collection, population, and compensation mechanisms for municipalities with lower income levels.
Why It Matters
The dispute reflects the deep political tensions surrounding decentralization spending in Panama, especially as prosecutors continue to examine how local government funds were assigned and used during previous administrations. The issue has become especially sensitive in provinces such as Bocas del Toro, where Robinson has long held political influence and where millions of dollars were received under the parallel decentralization system between 2021 and 2023.
Despite the confrontation, the committee moved ahead with the transfer. The proposal passed with 10 votes in favor, one abstention from Robinson, and no votes against.