Panama mayor fined 50% of salary for hiring relatives

Panama's National Authority for Transparency and Access to Information (Antai) has imposed a significant penalty on Stefany Peñalba, the mayor of Arraiján district. She faces a fine equivalent to half her monthly salary following an administrative investigation that uncovered a conflict of interest. The investigation concluded that Peñalba hired two of her first cousins to work within the municipality, a move that violates the Uniform Code of Ethics for Public Servants.

Despite the two relatives having resigned in January, Antai determined their initial hiring constituted an administrative offense. The authority also recommended the dismissal of another municipal official, identified as having a familial relationship with the mayor, due to her being the mother of one of the hired cousins. This situation was also deemed a conflict of interest.

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the hiring constituted a lack of administrative.

These sanctions are part of a broader crackdown by Antai, which has investigated 20 officials across various state institutions for alleged breaches of the Uniform Code of Ethics. Previous cases included nepotism and misuse of work time at the Autonomous University of Chiriquí, attendance record violations at the Social Security Fund, conflicts of interest at the Directorate General of Revenues, and disciplinary measures at other government bodies. Antai reiterated its commitment to fiscalization to promote transparency and integrity in public administration.

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this situation also constitutes a conflict of interests.