By The Rio Times | Created at 2026-09-30 09:42:04 | Updated at 2026-09-30 11:07:39
2 hours ago
PANAMA · JUSTICE
Key Facts
- —Sentence A Panama City court sentenced former public works minister Federico Suárez to 16 years in prison for embezzlement (Sentence No. 1 of 18 August 2026, made public on 29 September 2026; Judicial Branch, La Prensa).
- —The projects Eight years each for the Avenida Domingo Díaz widening and the Patrimonio Histórico road works in the old town, both from the 2009–2014 Martinelli government (La Prensa).
- —Alleged overcharge State audits put the combined overcharge on the two contracts at more than US$90 million (La Prensa, 11 March 2026).
- —Co-defendants The judge acquitted seven other defendants, including five members of the bid evaluation committee (Judicial Branch, 29 September 2026).
- —Appeal The ruling is a first-instance decision and can be appealed; La Prensa reported on 29 September 2026 that Suárez remains free.
Federico Suárez ran Panama’s public works ministry under President Ricardo Martinelli. He received eight years for each of two road contracts the court found overpriced. The ruling can still be appealed.
Free daily brief — no card needed
Get every Panama story in one morning email
We build you a personalized brief around the topics you follow — free for 7 days. Love it? Your first month after that is US$1.
Yes, email me my free daily brief — I can unsubscribe any time.
One-stop reference
Company Intelligence
Every listed company in Latin America — financials, ownership and structure for 1,450+ companies across 26 exchanges, in one place.
A Panamanian court has sentenced former public works minister Federico Suárez to 16 years in prison for embezzlement on two road projects. The ruling, made public on 29 September 2026, is a first-instance decision and can be appealed.
What the Court Decided
The sentence came from the First Liquidating Court for Criminal Cases in Panama City, led by Judge Águeda Rentería. Panama’s Judicial Branch said the court signed it as Sentence No. 1 on 18 August 2026.
The decision became public on 29 September through Edict No. 765, a formal court notice. The Panamanian daily La Prensa reported it that evening.
The judge found Suárez guilty of several forms of peculado, the legal term for embezzlement of public funds. The offence is set out in Article 338 of Panama’s Penal Code.
Suárez also received a 16-year ban from public office, which begins only after he serves his prison term. The judge rejected defence motions that the case had expired and a separate motion to annul it.
Two Road Projects, Two Price Gaps
The case joined two investigations from the government of Ricardo Martinelli, president from 2009 to 2014. Both projects belonged to his road master plan for Panama City.
The first was the widening of Avenida Domingo Díaz, a main road in the capital. A consortium of the builders Ingenieros Civiles Asociados (ICA) and Constructora Meco won it for US$237.5 million.
A forensic audit put the reasonable cost of that road at US$190 million. The second project, Patrimonio Histórico, rebuilt streets in the Casco Antiguo, the capital’s colonial old town.
The Brazilian builder Odebrecht carried out that work for a final price of US$255 million. The audit set its reasonable price at US$204 million.
The audits came from the Comptroller General’s Office under Federico Humbert, comptroller from 2014 to 2019. Together they found alleged overcharges of more than US$90 million.
The judge imposed eight years for each project, which makes up the 16-year total. Panama uses the US dollar as legal tender, so no conversion applies.
How Prosecutors Built the Case
The trial opened on 2 March 2026 behind closed doors. Senior prosecutor Ruth Morcillo argued that Suárez’s post gave him knowledge of, and control over, the inflated contracts.
Prosecutors also used statements from two former executives of FCC (Fomento de Construcciones y Contratas), a Spanish builder. They told investigators that firms paid bribes of 10% on contracts the ministry awarded between 2009 and 2014.
A former head of contract administration at the ministry, Jorge Ruiz, had earlier admitted responsibility in a plea deal. His account formed part of the evidence.
The case grew out of a wider inquiry Panama opened in 2017 into the local impact of the Odebrecht bribery scheme. That scheme led investigators to review other large public works.
Seven Defendants Acquitted
The judge acquitted seven co-defendants, the Judicial Branch said. Five of them sat on the committee that scored the bids, and prosecutors had asked for their acquittal.
Businessman Marcelo De La Rosa of the consultancy Louis Berger Group was also cleared. Prosecutors had sought his conviction alongside that of Suárez.
It is not yet known whether prosecutors will appeal the acquittal of De La Rosa.
Not His First Conviction
The ruling adds to two earlier cases against Suárez. In the Blue Apple money laundering case, tied to bribes from state contractors, he received 158 months and a US$27.4 million fine.
A lower court issued that sentence on 13 November 2023. The Superior Liquidation Court for Criminal Cases confirmed it on 4 April 2024.
A third case concerned the Arraiján–La Chorrera highway west of the capital. Judge Rentería acquitted Suárez there in April 2025, but the superior court later sentenced him to eight years.
In September 2026 that court gave Suárez 15 days to file a cassation appeal, the last remedy against a conviction. La Prensa reports that he remains free.
What Happens Next
La Prensa noted that the new sentence can be appealed because it is a first-instance ruling. The Judicial Branch said the parties may use the remedies that criminal procedure law provides.
In the earlier cases, appeals went to the Superior Liquidation Court, with cassation at the Supreme Court as the final step. It is not known whether Suárez will appeal this time.
Liquidating courts exist to close cases from Panama’s older criminal procedure, the mixed inquisitorial system. New cases have used an adversarial system nationwide since 2 September 2016.
By 31 July 2025 only one liquidating court remained in Panama City, with 201 open files, according to the Judicial Branch. That court issued this sentence.
What It Means for Residents and Investors
For Panamanians, the verdict shows that contracts signed more than a decade ago can still end in a prison sentence. It also shows how slowly these cases move, with appeals able to add years.
For investors, the case is one step in a long clean-up of public contracting after the Odebrecht scandal. Convictions point towards accountability, while acquittals and open appeals keep the outcome uncertain.
The next stage is any appeal, which would give the superior court a second look at the file.
More: Panama news, every day from The Rio Times.
Frequently Asked Questions
What was Federico Suárez convicted of?
A Panama City court found him guilty of embezzlement over two road contracts from 2009–2014. State audits found alleged overcharges of more than US$90 million on the Avenida Domingo Díaz widening and the Patrimonio Histórico works.
Will Federico Suárez go to prison now?
Not necessarily yet. The 16-year sentence is a first-instance ruling that can be appealed. La Prensa reported on 29 September 2026 that he remains free.
Who else was tried in the case?
Seven co-defendants, including five members of the bid evaluation committee and businessman Marcelo De La Rosa, were acquitted. Prosecutors had sought a conviction only for Suárez and De La Rosa.
Sources: Órgano Judicial de Panamá · La Prensa · La Prensa · La Prensa · La Prensa · Órgano Judicial de Panamá
