The Ministry of Economy and Finance (Panama) transferred $300,000 to the municipality of Chagres in November 2024. This occurred while the district’s mayor, Eugenio “Geñito” Delgado, was under criminal investigation for his alleged role in a separate funding scandal. The payments raise new questions about the oversight of public funds and political connections within Panama’s local governments.
Official records confirm two separate disbursements reached the Chagres municipal coffers late last year. Delgado faces prosecution for alleged embezzlement, or “peculado,” connected to his prior administration. He is specifically accused of mishandling approximately $1.4 million from a previous decentralization fund. A judge has placed him under house arrest while the judicial process continues.
Political Ties and a Resignation
Eugenio Delgado was elected to multiple positions in May 2024. He won the race for mayor of Chagres while also securing a seat as the alternate legislator for Deputy Nelson Jackson. Jackson represents Circuit 3-2 and is a member of the ruling Realizando Metas party. Delgado resigned from his legislative posts just weeks after the election, choosing to focus solely on his mayoral duties in Chagres.
Critics argue the timing of the financial transfer is problematic. The corruption case against Delgado became public knowledge in January 2024, nearly a year before the MEF approved the recent funds. Former deputy Juan Diego Vásquez has repeatedly alleged that such transfers appear politically motivated rather than based on technical need. He suggests funds flow to municipalities with leaders aligned with the current administration.
“These accusations only seek to damage a trajectory of work and commitment,” Jackson stated in a written response. [Translated from Spanish]
Deputy Nelson Jackson publicly distanced himself from the controversy after Vásquez linked him to the MEF transfers. Jackson serves on the board of the Panama Canal and has declared himself “100% a deputy of the official party.” In a brief communique, he called Vásquez’s claims false and without legal foundation. He insisted his office operates with total transparency and does not control municipal budgets.
The Ministry of Economy and Finance has not released a full list of municipal transfers for public review. This lack of disclosure persists despite formal requests from opposition coalition members. The ongoing secrecy prevents a comprehensive analysis of how these allocation decisions are made across all districts.
Broader Pattern of Questions
Chagres was not the only municipality in the region to receive money. The neighboring district of Portobelo obtained a $150,000 transfer from the MEF around the same period. Portobelo’s mayor, Carlos Chavarría, has held his position since 2004 and is also a member of the ruling Realizando Metas party. His lengthy tenure and party affiliation mirror the profile of other recipients.
Chavarría’s past includes his own political controversies. A 2014 newspaper investigation reported that Chavarría alleged a relative of former President Ricardo Martinelli solicited an $80,000 payment from him. The alleged payment was for lobbying the national government to approve millions in projects for Portobelo. This historical context adds another layer to the scrutiny of how funds are secured by local leaders.
The core issue revolves around the alleged “parallel decentralization” scheme. Prosecutors allege Delgado received over $6 million from the National Decentralization Authority between 2019 and 2024. Those funds were distributed through 36 separate payment orders, each reportedly approved by the Comptroller General in an average of ten days. The speed of those approvals is itself a point of interest for investigators.
These developments occur within a complex political landscape where party loyalty is often emphasized. The realizando metas coalition, which brought President José Raúl Mulino to power, holds significant influence. The situation in Chagres tests the administration’s stated commitment to accountable governance, especially when allegations involve a local ally.
For now, Mayor Delgado manages his municipality’s affairs under the constraints of house arrest. The judicial process for the earlier case continues its course. The newer $300,000 in funds are presumably being used for local projects in Chagres, though detailed expenditure reports are not immediately available. The story underscores the challenges of ensuring that every dollar reaches its intended public purpose, particularly when past management is under a cloud.
Observers note that robust systems from the autoridad nacional are crucial for preventing misuse. The outcome of Delgado’s case may influence future protocols for releasing state funds to municipalities whose leaders are under formal investigation. Transparency advocates argue that proactive publication of all transfer data by the MEF would be a simple first step toward rebuilding trust.