The investigation into the use of decentralization funds began after a series of audits by the Comptroller General of the Republic. The Anti-Corruption Prosecutor’s Office arrested several former district representatives and treasurers for alleged embezzlement in the handling of decentralization funds. The number of individuals formally charged in Panama for embezzlement linked to the “parallel decentralization” (descentralización paralela) scandal has reached 99. As of August 2026, the ongoing corruption investigations into Panama’s “descentralización paralela” (parallel decentralization) have resulted in 99 individuals—mostly former local representatives and treasurers—facing formal charges for alleged embezzlement (peculado). Investigation Status & DetailsTotal Imputations: 99 people officially charged with misuse of public funds.