Anti-corruption prosecutors in Panama intensified their crackdown on former public officials Wednesday when they detained former DGI director Publio De Gracia. The arrest happened during a coordinated nationwide action named Operation Cuestor, which targeted alleged unjust enrichment and money laundering linked to his time leading the country’s tax authority. De Gracia’s romantic partner was also taken into custody as agents from the Judicial Investigation Directorate and the National Intelligence Directorate carried out simultaneous raids in Panama and Panama Oeste provinces.
Former DGI Director Detained in Anti-Corruption Sweep
Judicial sources confirmed the apprehension came after months of quiet investigation by the Anti-Corruption Prosecutor’s Office. Authorities said the operation stemmed from evidence gathered after a 2024 audit raised red flags about De Gracia’s finances. The former DGI director detained Wednesday oversaw Panama’s General Directorate of Revenue from 2019 until mid-2024, a period when the entity was supposed to tighten fiscal oversight and boost collections. Instead, prosecutors now allege that public funds were diverted, creating a patrimonial injury to the state of $724,682.39.
The detention of the former DGI director was not an isolated move. His partner, whose identity was not immediately released, was apprehended in parallel proceedings. According to the Attorney General’s Office, both individuals face charges that could bring severe penalties if proven.
“The proceedings are tied to a complex financial scheme where the accused failed to justify a significant asset buildup during their tenure,” [Translated from Spanish]
an official familiar with the case said, speaking on condition of anonymity because the investigation is ongoing.
Audit Uncovered $16.3 Million in Unexplained Wealth
What triggered the high-profile arrest of the former DGI director detained this week goes back to a damaging report from the Comptroller General of the Republic. In May 2024, auditors submitted a criminal complaint against De Gracia, flagging a patrimonial imbalance the state put at $16.3 million. The Comptroller ordered an immediate seizure of assets for that same amount, setting the stage for the criminal inquiry that culminated in Operation Cuestor.
That broader audit painted a picture of wealth that skyrocketed beyond what a public salary could sustain. While the current charges focus on a slice of that total, the $724,682.39 figure, prosecutors have not ruled out expanding the scope of their case. Former DGI director detained amid such large discrepancies highlights vulnerabilities in Panama’s internal revenue systems, where a top official could allegedly manipulate controls for personal gain. The Comptroller General’s findings also triggered parallel administrative reviews inside the DGI, though those processes were not detailed Wednesday.
Luxury Vehicles and Properties Seized Across Panama
Away from the numbers and audit trails, the tangible assets captured during Operation Cuestor tell their own story. The Attorney General’s Office directed the seizure of three real estate properties, six high-end vehicles, and four bank accounts as part of the preventative measures.
“Among the vehicles mentioned are Toyota Prado, Lexus and BMW,” [Translated from Spanish]
the institution noted in a brief statement, confirming the luxury assortment that investigators now link to the alleged illicit gains.
Agents from the DIJ and intelligence units carried out the property raids in both the capital and Panama Oeste. The simultaneous takedowns aimed to preserve evidence and prevent assets from disappearing before a potential trial. The detention of the former DGI director and the freezing of his partner’s assets underscore how coordinated the law enforcement push has become. Authorities said they expect to present the seized goods as physical proof of the unjustified enrichment the couple reportedly enjoyed. Neighbors near one of the targeted properties described a heavy police presence and prolonged searches that lasted hours.
Broader Implications for Panama’s Anti-Graft Efforts
The case of the former DGI director detained this week arrives at a moment when Panama is trying to shed its image as a haven for financial opacity. After being placed on international grey lists and facing pressure to strengthen anti-money laundering frameworks, the government has touted aggressive enforcement as a sign of progress. Operation Cuestor, named with clear symbolism suggesting accountability, fits that narrative, but critics argue isolated detentions do little without systemic reform.
De Gracia’s five-year leadership at the DGI spanned the entire administration of former President Laurentino Cortizo. His role placed him at the center of tax collection, fiscal policy, and audits of other public entities, a position that, if abused, could easily mask fraudulent activity. The ongoing proceedings will test the strength of evidence collected from the Comptroller’s audit and the financial intelligence that identified the four bank accounts now frozen. Beyond the courtroom, the detention of a one-time mighty revenue chief sends a warning to other officials who might believe tenure shields them from scrutiny.
Ultimately, the arrest of the former DGI director detained in Operation Cuestor shows that post-term investigations are accelerating. As prosecutors prepare to formalize charges, public attention will focus on whether the $724,682.39 designated in the initial case expands toward the $16.3 million flagged by auditors. The investigation remains active, and judicial sources indicated that additional summonses could follow as authorities trace the full extent of the alleged wealth accumulation.