Panama Court Upholds Measures Against Union Leaders in Embezzlement Case

Panama's Court of Appeals has upheld the precautionary measures against union leaders Genaro López and Marcos Andrade, rejecting their appeal in a case involving alleged misuse of public funds for worker training. López will continue to report periodically to authorities, while Andrade remains under house arrest. The court's decision supports the initial ruling by the judge overseeing the case.

López is charged with aggravated embezzlement, and Andrade faces accusations of embezzlement by extension and money laundering. The investigation originated from an audit by the Comptroller General of the Republic, which identified a potential financial loss of $760,951. These funds, transferred from the Ministry of Labor and Development (Mitradel) to the National Confederation of Independent Unity Unions (Conusi), were intended for labor training programs.

Jorge Guzmán, the union's lawyer, stated that the appellate court validated the lower court's decision to impose measures other than provisional detention, allowing the defendants to face the proceedings freely, albeit with house arrest for Andrade. Genaro López defended the administration of the funds, asserting that their use is strictly regulated and subject to rigorous oversight.

"If there is money that is well-audited, it is the educational insurance. That is, it has a procedure and there is a decree that regulates the use of that money that is delivered," López said. He explained that the union provides quarterly financial reports, which are reviewed by the Panamanian Institute of Labor Studies (IPEL) and the Ministry of Labor's audit directorate before final approval.