The judicial system of Panama is an adversarial mixture of the inquisitory and accusatory systems known elsewhere in the world. It is inefficient, corrupt and non-transparent. It is difficult to understand or use for both Panamanians andnon-Panamanians and is highly susceptible to manipulation. The inadequacies of the justice system have become increasingly prominent, seizing the attention of the public in headlines and editorials denouncing systemic slowness, inefficiency and lack of collaboration among the key justice institutions. Criticism has focused on the criminal system, but local and foreign businessmen have little confidence in the ability of the civil justice system to settle commercial disputes expeditiously and efficiently.

The criminal justice system continues to suffer serious, systemic weaknesses that have produced delayed, flawed or legally incorrect decisions. Major consequences of these weaknesses are increasing backlogs in cases and a prison population in which 65% of the prisoners held in preventive detention have never appeared before a judge. The courts are believed by many to be subject to manipulation, corruption and political influence. The commercial component of the system of civil law is no better. Court productivity is low and slow: approximately 60% of all cases in the system (the majority in civil courts) have been pending for over a year, and 40% have been pending for over three years.

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