Panama's government has terminated its contract with Ufinet Panamá over persistent outages.

Network provider Ufinet has been fined $6.48 million, equivalent to 10 percent of the total value of the agreement, for repeated breaches in the management of the National Multiservices Network (RNMS), a strategic infrastructure that digitally connects more than 90 public entities in the country.

According to official reports, the irregularities occurred between 2022 and 2025 and included multiple technical errors, unjustified delays in attending incidents, unscheduled outages, and configurations not aligned with the agreed framework.

The failures impacted the operational functioning of institutions, including the Ministry of Economy and Finance, the Ombudsman's Office, the Technological University of Panama, and other agencies, putting at risk the continuity of essential services for the State.

The National Authority for Government Innovation (AIG) recommended that public entities migrate their technological operations to alternative providers to avoid future damages.

The contract, in force until the end of 2025, was awarded during the administration of Luis Ricardo Oliva Ramos, former administrator of the AIG. Ufinet was responsible for ensuring technical quality standards, coordinating the integration and maintenance of services, and facilitating digital procurement through purchase orders.

The Ufinet Consortium for Schools, headed by the company, also recently participated in a public bidding process to provide Internet to more than 3,100 schools nationwide, with a higher bid than that of Cable & Wireless Panama.