Pandora Case in Panama: The Testimonies and Deleted Emails That Implicate a Former Bank Executive

The Pandora case investigates an alleged network of public officials, private individuals, and intermediaries who would have manipulated Panama's tax system to irregularly trade tax credits, in an operation that would have caused damage to the State exceeding $40 million. (Illustrative image Infobae) Arnold Salgado Galeano, former Vice President of Finance and Accounting at BAC Panamá, allegedly received $50,000 from an intermediary for facilitating payments related to the purchase of tax credits, according to testimony presented by the Public Prosecutor's Office during a court hearing. The former executive will remain in provisional detention while the Pandora operation investigation advances. Guarantees judge Sandra Castillo legalized his apprehension and admitted the charges for alleged private corruption and organized crime during the October 6 hearing. The decision took into account the seriousness of the events, the risks of flight, and the possible tampering with evidence, within a case file investigating a patrimonial loss exceeding $40 million. One of the main accusations came from Carlos Ferguson, identified as an intermediary in the operations under investigation, who declared that he gave the former executive $50,000 in two payments made in the parking lots of El Santuario church and a residential building in El Dorado. The money would have been a token of gratitude for expediting transactions related to tax credits. The Prosecutor's Office also presented information from an internal bank investigation that made it possible to detect the deletion of 36 emails related to the questioned operations. Among the communications were exchanges with Ferguson and companies that sold credits to the bank. The destruction of evidence was considered by the judge when evaluating procedural risks. BAC Panamá stated that the operations related to the acquisition of tax credits were carried out using official certifications and reiterated that the investigation does not compromise the entity's financial stability. Taken from BAC The defense argued that Salgado did not have exclusive responsibility for the acquisition of these instruments, since the operations went through the Legal, Compliance, and General Management departments. His lawyers argued that the contracts were signed by the general manager and that the verifications were carried out using information available in the official records of the DGI. Salgado, who received a monthly salary of $11,000, held his position until September 2026. During the hearing, money transfers from his accounts to those of his mother were also mentioned, movements that the Prosecutor's Office considered relevant for evaluating a possible risk of evading the process. The Pandora operation investigates an alleged network made up of DGI officials, private individuals, and intermediaries who would have manipulated the e-Tax 2.0 platform to appropriate tax credits. The investigations date back to events detected since 2024, while the Public Prosecutor's Office proceedings began in 2025. Tax credits are balances recognized in favor of a taxpayer against the tax administration, which can be used to offset tax obligations when regulations allow it. In this case, the alleged organization altered tax records to generate or appropriate balances, which were later traded through intermediary companies. The Public Prosecutor's Office presented testimony during the hearing about alleged deliveries of money and the deletion of electronic communications related to the operations under investigation in the Pandora case. (Illustrative image Infobae) On July 8, 2026, the National Police and the Public Prosecutor's Office executed more than 25 raids in Panamá, Panamá Oeste, Colón, and Coclé. The initial actions allowed the apprehension of officials and private individuals. By September, the case file had accumulated 22 charged individuals, before the incorporation of the former bank executive. In August, BAC Panamá decided to voluntarily join the criminal proceedings, with the purpose of providing documents and facilitating the traceability of the operations under investigation. The entity stated at the time that it had not been criminally charged and that its participation sought to clarify the irregularities detected in the tax certifications. Following Salgado's capture, BAC reiterated that it acquired the tax credits lawfully, based on official certifications and validations from the DGI. It also assured that the investigation does not affect the institution's deposits, liquidity, or solvency, and that its operations continue to develop normally. GIVE ME A BOX ABOUT TAX CREDITS Tax credits are balances in favor of taxpayers that can be used to offset tax obligations, under the conditions established by law. Their alleged manipulation and irregular trading is at the center of the Pandora case investigation in Panama. (Illustrative image Infobae) The former executive's defense appealed the provisional detention, so the Superior Court of Appeals will review the measure on October 27. Meanwhile, the Public Prosecutor's Office continues to examine the participation of officials, intermediaries, and companies in an investigation that seeks to determine responsibility for the alleged multimillion-dollar damage to the Panamanian State.