PANAMA · POLITICS
Key Facts
- —The country Panama uses the US dollar as legal tender, and its balboa is fixed at one to the dollar.
- —Why it matters The authority sends national money to 81 municipalities and their community boards for local projects.
- —Why now Its director general offered her post to the president on Thursday 15 October, six days after the earthquake.
- —What happened Roxana Méndez put her job at President José Raúl Mulino’s disposal and stays until a successor is named.
- —The numbers B/.225 million (about US$225 million) went to local governments from August 2024 to September 2026, for 7,975 community projects.
- —What it means for you The agency keeps working under Méndez for now, and its project and payment data stay public online.
- —Still open No successor, no timetable and no confirmed reason have been published.
- —Power Index Panama ranks 11th of 14 in The Rio Times Latin America Power Index, with 34.2 points (October 2026 edition).
Roxana Méndez resigns as head of Panama’s Autoridad Nacional de Descentralización (AND), which sends national money to local governments. She offered her post to President José Raúl Mulino on Thursday 15 October and stays until a successor is named.
The AND says it transferred B/.225 million (about US$225 million) to local governments between August 2024 and September 2026. For US readers, this is a leadership change at the agency that channels Panama’s dollar funds to 81 municipalities.
La Estrella de Panamá, TVN, Mi Diario and El Siglo all reported the resignation on Thursday. The AND itself confirmed it in a communiqué dated Panama, 15 October 2026, posted on its website.
What the Authority Said on Thursday
The communiqué says Méndez will keep serving Panama in support of Mulino’s administration. It gives no reason for her decision.
TVN wrote that its own information points to “personal reasons” behind the step. Mi Diario wrote that Méndez had not, so far, explained why she is leaving.
The AND says that under her two years in charge it strengthened the capacity of local governments and modernised the institution. It adds that approvals were digitised and that public information on how funds are used was widened.
Roxana Méndez Resigns After Two Years at the Authority
TVN reports that Mulino nominated her on 19 June 2024, while he was still president-elect. Mi Diario adds that the National Assembly ratified her on 11 October 2024.
TVN lists her earlier posts as deputy mayor of Panama district from 2009, Minister of Government from 2010 to 2012 and mayor from 2012 to 2014. El Siglo adds that she took the mayor’s office after Bosco Vallarino resigned and did not win re-election in 2014.
Mi Diario says her tenure centred on audits, digitalisation and checks on money sent to municipalities and community boards, known as juntas comunales. It adds that she filed many complaints with prosecutors against local officials over a scheme called “descentralización paralela” (parallel decentralisation).
El Siglo places those cases in the government of former president Laurentino Cortizo Cohen, which ended in July 2024. They are allegations, and the reports cited here name no court ruling.
What the Authority Does and Its Record in Numbers
The AND passes state funds to Panama’s municipalities and community boards for local investment. Between August 2024 and September 2026 it transferred B/.225 million (about US$225 million), of which B/.215.8 million (about US$215.8 million) financed 7,975 community projects.
The balboa is tied one to one to the US dollar, so the balboa and dollar amounts match. The AND says those projects are at different stages of execution across the country.
An AND report of 15 September counts 7,597 municipal projects worth B/.201.6 million (about US$201.6 million) from August 2024 to July 2026. Roads were the largest area, with 1,517 projects and 38% of the spending.
On 24 September the AND said the finance ministry had recommended a 2027 budget of B/.296.4 million (about US$296.4 million), up US$68.8 million. That includes about B/.182 million (about US$182 million) of property-tax revenue that the AND says will go in full to municipalities.
Méndez presented that budget to the Assembly’s Budget Committee, where she said digital approvals had cut processing times by 60%. These are the authority’s own figures, and no outside audit of them appears in the reports.
The Timing Beside the Earthquake Recovery
The resignation came six days after the earthquake of Friday 9 October, which La Estrella has covered closely. Mi Diario noted that it coincided with Mulino’s announcement of direct transfers of US$20,000 to mayors’ offices and US$10,000 to community boards in the affected areas.
Mi Diario wrote that the Comptroller General’s Office would supervise that money. None of the four reports ties the resignation to the earthquake, and the AND communiqué does not mention it.
TVN adds that at least 19 high-profile officials are said to have resigned from the current government, including Méndez. TVN uses the conditional, so the figure should be read as unconfirmed.
What It Means for You
Méndez stays in her post until a successor is named, so the authority keeps working in the meantime. None of the reports mentions a change to the decentralisation rules.
The AND website lists approved projects, payments made and an interactive project map, so residents and investors can check what is funded in a given district. Because Panama uses the dollar, those figures can be read directly against US budgets.
For a calm reading, this is a change of personnel and not yet a change of policy. A new director will decide how fast the audits and complaints Méndez started continue.
Our report on the earthquake funds, Panama Quake Rebuild Gets 2 Trusts, shows how recovery money is routed. For background on the state and its politics, see Panama Explained: The Canal, the Economy, the Politics and What to Watch.
What Is Not Known
Nobody has said who will replace Méndez or when the president will name a successor. The reports give no timetable.
The reason Roxana Méndez resigns is not confirmed, since TVN cites personal reasons and the communiqué gives none. It is also unknown whether the step relates to the earthquake or to the other reported exits.
The list of names behind TVN’s count of 19 resignations was not published in the reports reviewed. The status of the complaints Méndez filed with prosecutors was not reported either, and anyone named in them is presumed innocent.
Frequently Asked Questions
Who is Roxana Méndez?
She is the director general of Panama’s Autoridad Nacional de Descentralización, nominated by Mulino in June 2024. She was earlier mayor of Panama district and Minister of Government, according to TVN.
When did Roxana Méndez resign?
She put her post at President Mulino’s disposal on Thursday 15 October 2026, and the AND confirmed it that afternoon. She stays in office until a replacement is designated.
Why is Roxana Méndez leaving?
The AND communiqué does not say why Roxana Méndez resigns. TVN reported personal reasons, and Mi Diario said she had not explained her decision.
What does the Autoridad Nacional de Descentralización do?
It transfers national funds to Panama’s municipalities and community boards for local projects. The AND says it sent B/.225 million (about US$225 million) between August 2024 and September 2026.
Who will lead the AND next?
No successor has been announced. Reports say more details are expected, but none had been published by Friday 16 October.
Sources: Autoridad Nacional de Descentralización communiqué of 15 October 2026 (descentralizacion.gob.pa); AND releases of 24 September and 15 September; La Estrella de Panamá; TVN; Mi Diario; El Siglo.
This article was drafted with automated assistance and reviewed before publication. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief