Pandora Papers Case: House Arrest Revoked for Ex-DGI Official Lupo González in Panama

Panama's Superior Court of Appeals has overturned the house arrest of Lupo González, a former analyst for the Directorate General of Revenue (DGI), in connection with the Pandora Papers case. The 64-year-old will now be held in provisional detention.

The court reviewed the precautionary measures for seven defendants, confirming the provisional detention for five individuals. It also partially granted appeals filed by the Public Prosecutor's Office against two house arrests. The decision means González, accused of manipulating the e-Tax 2.0 system, will be detained. The Public Prosecutor's Office had appealed the initial house arrest measure granted to the former official.

Emeldo Márquez, the first superior specialized prosecutor against organized crime, explained that the court maintained the detention of five individuals who had appealed their preventive detention orders. "In this sense, the court maintained the detention of the five people who appealed the precautionary measure of preventive detention that was ordered by a judge of guarantees and, in default, modifies one of the house arrest measures that the Public Prosecutor's Office appeals, ordering provisional detention," Márquez stated.

González is among those investigated for allegedly manipulating the e-Tax 2.0 system. Prosecutors allege that tax credits totaling $42 million were irregularly generated and transferred through this manipulation, causing harm to the DGI. The Appeals Court cited ongoing risks, including the potential for tampering with evidence and the need for further interviews and incorporation of banking and corporate information. The magistrates also highlighted the risk to the community due to the alleged misuse of the DGI's tax IT system, which has impacted the Panamanian state.

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In this sense, the court maintained the detention of the five people who appealed the precautionary measure of preventive detention that was ordered by a judge of guarantees and, in default, modifies one of the house arrest measures that the Public Prosecutor's Office appeals, ordering provisional detention.