Panama’s Superior Appeals Court upheld provisional detention measures against five people under investigation in Operation Pandora, a case involving alleged fraud of more than $40 million within the tax system. The court also ordered a sixth defendant, who had been under house arrest, to be placed in provisional detention.
Eight additional co-defendants chose to drop their challenges regarding the precautionary measures, leaving the initial rulings firmly in place. Meanwhile, a sole exception was made for a female defendant, who stays confined to her residence on humanitarian grounds following a cranial surgical procedure she underwent back in 2025.
Although the house arrest mandate for the accused was upheld, the magistrates concluded that she is deeply tied to the matters currently being scrutinized and mandated that she wear an electronic tracking device throughout the progression of the legal process. The ruling was handed down by the Superior Appeals Court of the First Judicial District.
The Prosecutor’s Office had requested that the detention measures remain in place, arguing that procedural risks still exist. Among the reasons cited was the possibility that certain evidence could be compromised while several investigative procedures remain pending.
Investigators still need to gather interviews, banking information and documentation related to companies connected to the operations under investigation. These elements could help establish how the alleged structure operated and determine the involvement of the individuals under investigation.
The case focuses on the alleged irregular use of the Tax Authority’s E-Tax 2.0 platform. According to the prosecution’s theory, the system may have been manipulated to process and appropriate tax credits, causing losses to the Panamanian state exceeding $40 million.
Among those who maintained their appeals until the end are former Tax Authority officials Karina Suárez, Margie Caballero, Juana Chong and Vielka Sáez, as well as Juan Omar Palacios. The latter is accused by the Public Prosecutor’s Office of having received more than half a million dollars from a company allegedly acting as an intermediary within the scheme under investigation.
During the hearing, Sáez and Chong denied having known about the existence of a criminal organization within the tax administration. Both stated that the files involving tax credits had already arrived authorized and that their role was limited to completing administrative procedures, without participating in the approval of the transactions under investigation.
The investigation currently involves 21 people facing allegations of crimes including money laundering, organized crime, document forgery and corruption of public officials. However, the Public Prosecutor’s Office has warned that the scope of the investigation could expand to approximately 50 people.
The investigation was triggered by an internal audit conducted by the Tax Authority, uncovering discrepancies between tax records and transactions displayed on the E-Tax 2.0 platform. The discoveries encompassed transactions lacking supporting documentation, the cancellation of prior transactions, and alterations regarding tax credits and the beneficiaries of tax remittances.
The investigation led to more than 20 simultaneous raids in Panama City, Panama Oeste, Colón and Coclé, where Tax Authority officials and private individuals were arrested. Authorities are seeking to determine who authorized the transactions, how the alleged structure operated and where the funds obtained through the disputed tax credits may have gone.
Investigators believe that a portion of the funds could have been handed out physically to obscure the paper trail, according to the prosecution’s theory. Consequently, examining financial accounts, corporate entities, and monetary transfers continues to be a primary focus of the inquiry to ascertain if more individuals participated and whether the economic loss surpasses the figure initially calculated.
Following the Superior Appeals Court’s ruling, the main precautionary measures remain in effect as the investigation continues. The Pandora case remains one of the most significant recent investigations into alleged corruption linked to Panama’s tax system, both because of the number of people under investigation and the amount of the alleged financial loss to the state.
Source: Infobae — Infobae, “Panamanian justice confirms detention of defendants in $40 million tax fraud case”
