In a significant development in Panama’s ongoing anti-corruption efforts, former Ombudsman Patria Portugal has received a reduced sentence in connection with the embezzlement case tied to the National Council for Sustainable Development (Conades). The Anti-Corruption Prosecutor’s Office secured a penalty agreement approved by a judge of guarantees, allowing the convicted former public servant to serve a reduced prison term of 48 months and pay $300,000 in restitution to the State.
The agreement comes as part of a broader investigation into mismanagement and misuse of public funds allocated for the Basic Health Program — an initiative aimed at improving sanitation infrastructure in remote regions. The program, commonly known as the Zero Latrines Plan, was managed through Conades, an agency under the Ministry of the Presidency. It was originally designed to build essential health units in underserved, hard-to-reach communities.
However, according to a damning audit report issued by the Office of the Comptroller General, the program suffered from widespread irregularities. The report revealed a considerable financial injury to the State, noting that although each health unit was budgeted at B/.3,300.00, many of the units were never completed — and in some cases, never even started.
Patria Portugal, who previously held high-ranking government positions including serving as Panama’s Ombudsman, was among several individuals under scrutiny for alleged crimes against public administration. The court’s leniency in her case comes in exchange for restitution and cooperation.
The scandal has implicated four individuals in total, including two former public officials. Among them is a former mayor who remains in provisional detention following a ruling upheld by a Court of Appeals, prompted by arguments from the Public Prosecutor’s Office.
The arrests were carried out on July 3, 2025, during Operation Health, a coordinated law enforcement sweep across the provinces of Panama Oeste, Herrera, Los Santos, and Panamá. The operation aimed to dismantle a suspected network of corruption and uncover the extent of criminal activity involving public sanitation contracts.
While Portugal’s sentencing agreement brings some resolution to part of the case, the wider investigation is far from over. Authorities continue to examine other possible criminal and administrative responsibilities related to the mishandling of state funds allocated for essential health infrastructure.
Panama’s Attorney General’s Office has reiterated its commitment to uncovering the full extent of corruption within the Conades project and to holding accountable all individuals involved in the misappropriation of taxpayer money.
This case serves as a reminder of the systemic challenges facing public sector transparency in Panama and highlights the ongoing efforts to reform oversight mechanisms and improve accountability in the use of public funds.
