WITH BARELY two months in office Panama’s new administration is quickly discovering some of the challenges that face those who have their hands on the levers of power, with accusations from civil groups ranging from conflict of interest to nepotism.

 The newly appointed director of the National Assistance Program (PAN) which was the target of opposition parties, civil organizations and the media when it splurged $800, million much of it on questionable items, is the latest appointee to find himself in the crosshairs.,
Rafael Stanziola, is at a crossroads, says La Prensa as he has the task of auditing PAN’s bottomless purse spending spree during the Martinelli years. The problem he faces says La Prensa, is that his first cousin in the past five years , served in the past five years as legal adviser to the man who ran the instiuion, Rafael Guardia. 

Julissa Stanziola, was according to political sources "the right hand of Guardia", and worked in the PAN until June 30,With a monthly salary of $3 500 Guardia is accused of using millions in funds of the entity to benefit Democratic Change (CD) figures. and to award contracts to political cronies of l party president Ricardo Martinelli.

In an interview with La Prensa, new boss Stanziola confirmed the link with exfuncionary but claimed:"There is no conflict of interest because she does not work with me,"
Civil society leaders warned that this family affinity may interfere with the investigations into the PAN.
Carlos Gasnell,of the Panama chapter of Transparency International, said that in a case of a conflict of interest it must be declared to prevent it affecting investigations and audits underway.

"The natural thing is a declaration that you have some sort of limitation to prevent problems and for the public to not question that there was some kind of inactivity, omission or failure to act in order to protect the family," he said.

Magaly Castillo, the Citizens Alliance for Justice, said: "If indeed there is such a conflict ... ideally there shouldcorrective action. Right now there are many accusations of wrongdoing in these institutions; and as a starting point thereshould be no conflict of interest. We must reject that" she said.

Constitutional lawyer Miguel Antonio Bernal said the conflict of interest is obvious. "This man has been practicing occultism contrary to the transparency that should exist in public affairs, in an organization like the National Assistance Program, which has to be closed. While there is PAN there will be corruption.” he said.
Rigoberto González, former general secretary of the Public Ministry, argues that if Stanziola has to do some research internally in the organization and finds that his family was involved, he must be separated from the research.
He gave the example of judges when faced with a similar situation, "declared disabled." He said that each entity has a Code of Ethics, including the conflict of interest.
Law 6 of 2002, Transparency, Article 27 provides that any agency or instrumentality of the State must have a Code of Ethics.
The government of former President Martin Torrijos by Decree 246 of December15, 2004 created the Uniform Code of Ethics for Public Officials.
Independent Deputy Ana Matilde Gómez presented a legislative initiative to regulate the matter. Paragraph 8 of Article 8 contained in the bill 058 provides that public servants will be prohibited: "Make decisions regarding office when they cause a direct impact on the particular interests of their immediate family."

The case comes amid rumors about the systematic elimination of data of National Assistance Program. "[In the PAN is deleted all information is deleted" said Deputy Jose Luis Varela, Panameñista. He accusedthe former director Rafael Guardia of irregularities