Córdoba concerned with funding of the Savings Program

LA PRENSA/Jorge Fernández

José Abbo (izq.), Fred Kardonski, y Luis Francisco Hurtado.

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29/11/2012 - Panameñista Party Alternate Legislator Grimaldo Córdoba said today that he is concerned about the lack of regulation over the Panama Savings Fund, which is being used to fund disaster relief efforts in Colón, Arraiján and La Chorrera.

He said the board of directors does not have the power to properly supervise the program and that there is the potential for problems related to the abuse of funds.

Córdoba said that while it is important to distribute the funds in a rapid and effective way, it is not a secreat that public finances are sometimes abused.

He noted that the government has a deficit of $406 million that has not been properly explained.

"We want the money to reach Panamanians without waste or exploitation," he added. "It is not correct to profiting politically from misfortune."

Partido Revolucionario Democrático Legislator Juan Carlos Arosemena suggested to the government that it offer lines of credit to flood victims and that the money be repaid by cutting programs in the 2013 budget.

He said the government could allocate up to $60 million in flood relief this way.