Well it finally happened and I am glad that it finally did.  I got really tired of being accused of  bad mouthing an upright institution that was offering 8.5% rate CDs. Come on folks, you have to be really confused to believe that this was anything but an outright scam that filled the pockets of a few principals and of course the salesmen that made over a million dollars in commissions selling this trash.  Forget about your 8.5% return, now you just hope to get your principal back.  It seems that the government tired of seeing no action on the part of COACESS to reconcile their accounts and just shut them down.  This follows in the heels of the Financial Pacific fiasco where over $14 million went missing.  By the way, that money suddenly reappeared so as in most cases here in Panama, nothing wrong happended.

In an article in Prensa covered by Don Winner at the Panama Guide, a liquidation order was issued on 21 March 2013 by the Panama Autonomous Cooperative Institute (Ipacoop).

The announcement of the liquidation of the Social Security Employees Savings and Credit Cooperative Fund (Coacecss) has taken depositors by surprise.

Dr. Carmen Carrasco, who like other depositors trusted entity to save her money, was informed on Thursday when she called the Coacess to inquire about the delay in the payment of interest, due to the freezing of funds of the cooperative.

Carrasco, whose savings are part of the $95 million that were on deposit with the Coacecss, said she has no idea of when she will be able to get her money.

“This is ridiculous. These were retirement funds. So far we have not received a penny of interest,” said Carrasco.

This occurred after the refusal of a proposed reorganization and financing presented to the board by various cooperative associations.

Coacecss had been under intervention since June 2012 when the IPACOOP detected a “financial deterioration” in its management, including the payment of high commissions for referring customers. (Prensa)