PANAMA’S ruling administration continues to struggle with the fall out from the  presidential payment of private hospital bills for well paid officials in the governing echelon.

Minister of the Presidency Alvaro Alemán is the latest to attempt  to defended the discretionary spending of President Juan Carlos Varela, to pay for medical expenses of government officials, in one case nearly $18,000 for elective lipo surgery, an over $7,000 for an Assembly official and fomer deputy who earns $7,000 a month but has no medical insurance.

Aleman, in a televised interview, in an attempt to divert attention, said that the funds have also been used for disaster mitigation, help with materials for homes, funeral expenses, educational assistance and sponsorship for conventions.

The minister insisted that the expenses have tried to fill social needs that "inundate us in the Presidency," and have not been abused as had been the case previously.

This has been done ­ he said ­ without asking for the political affiliation of the applicants, as it happened in the previous administration.

He emphasized that the expenditures have been transparent and published on the website of the Presidency.

"We feel very calm in the way we have handled the discretionary funds," he said.

President Varela has also defended the payment of medical expenses for government officials.

Carlos Barsallo, a member of Transparency International, said that such expenditures need to be studied to make sure that the funds are spent rationally.

Resources are limited, we cannot meet the needs of everyone, so this selection has to be based on the most scientific methods possible, he said.

The Citizens Alliance for Justice with near a score of affiliated civil  organizations has also called for parameters to be established  for the Discretionary  fund