Panama's Ifarhu Detects Misuse Attempts on Scholarship Cards

The Institute for Training and Human Resource Development (Ifarhu) in Panama is actively monitoring transactions made with scholarship cards to ensure funds are used appropriately. The institute's tracking system automatically identifies and rejects transactions at non-approved establishments or for unauthorized activities.

Carlos Godoy, Ifarhu's Director General, reported that about 5% of all transactions have been declined. These rejections are mainly due to attempts to use the cards at locations such as gas stations, restaurants, and casinos, which are not permitted uses for scholarship funds. "This allows us to verify that these funds are not being used for inappropriate activities," Godoy stated.

These funds are primarily allocated to essential student needs. Ifarhu data indicates that approximately 70% of the scholarship money is spent on groceries. The remaining 30% is used for school supplies, uniforms, and other expenses directly related to students' education.

To date, Ifarhu has issued over 140,000 cards, disbursing approximately $21 million, with about $15 million already utilized by beneficiaries. Godoy highlighted that the card system enhances financial control for families, aiding in budget planning and saving. Previously, parents had to collect payments in person, often facing delays due to administrative errors. The card system streamlines payments, reduces such inconveniences, and improves fund traceability.