What Happened
Panama’s Ministry of Labor and Labor Development is challenging how union training funds have been handled for years, after raising concerns over the lack of accountability tied to public money received by labor confederations. Labor Minister Jackeline Muñoz said organizations such as Conusi and Conato had received state resources without clear reporting on how those funds were spent.
Muñoz said that since 2024, no organization that fails to provide clear accounting will receive any disbursement. She also consulted the Public Administration Prosecutor’s Office on how these funds should be supervised.
In a response issued in late March 2026, Public Administration Prosecutor Grettel Villalaz said both union groups must account for the use of the resources, stressing that union autonomy does not exempt organizations from transparency when they manage money from the national budget.
How the Funds Work
The financing system dates back to the creation of Panama’s educational insurance fund in 1971, which is supported by contributions from employers, workers and self-employed people. A portion of that fund is assigned to union education and managed by the Ministry of Labor through the Panamanian Institute of Labor Studies, known as IPEL.
At the center of the dispute is Article 1066 of the Labor Code. After a 2010 reform, the annual allocation was set at $24,000, divided into $18,000 for Conato and $6,000 for Conusi, distributed through monthly payments.
Those transfers are supposed to be backed by quarterly spending reports and supporting documents. The reports must detail the courses, seminars or conferences held, identify the beneficiary organizations, describe the topics covered and list the number of workers who participated.
The Comptroller General also has a role in the process, since the funds are subject to both prior and later review.
The Larger Audit
Beyond the monthly allocations, Muñoz pointed to a much larger financing channel: the Union Training Fund, which is also fed by educational insurance resources. That fund distributes between $10 million and $14 million a year among union organizations, depending on economic conditions and revenue collection.
The minister said a preliminary audit has already identified irregularities that could total as much as $7 million, tied to transactions recorded between 2012 and 2024. The Comptroller General has been auditing the management of educational insurance funds used for union training, covering the period from January 2012 through June 30, 2024.
Muñoz defended the tougher stance, saying public money cannot be handed out without a legal basis. Her administration has tied any future disbursement to full compliance with accountability rules.
Union Response
Conusi secretary general Marco Andrade rejected the ministry’s accusations and said the organization has complied with reporting requirements. He said no educational insurance funds have been disbursed to Conusi since the current administration began.
Andrade said Conusi has submitted two reports for 2024 and one for 2025. He also argued that these funds are reviewed through multiple filters before approval and said the dispute amounts to a political persecution of organizations that have taken a critical stance toward the government.
Aniano Pinzón, secretary of Conato, was also sought for comment, but no response was obtained.