At least six companies, including the real estate arm of Panama’s state-run oil company, have been ordered to suspend their real estate sales licenses pending an investigation, according to a notice issued Tuesday.
The notice said the suspension was imposed in response to the companies’ failure to comply with a licensing agreement, which stipulated that they must not sell more than five units of residential real estate within a period of three years.
The suspension order was issued after the companies failed to submit an audit of their operations by the auditing firm, the notice said.
The companies are: Panama Real Estate Licensing Company (Paradigm Real Estate), Pan-Am Group, Parag Group and Pan-American Real Estate Development, the listing agency for the companies said in the notice.
The license suspensions are expected to last until at least June 20, 2018.
The suspensions were ordered on Monday after the state-owned Panamanian Oil Company (PANACO) signed a lease with a Panamanese property development company in 2018, and then violated the lease by selling the land for less than market value.
The Panama government said the companies had not complied with the licensing agreement.
“The licenses are suspended pending the completion of the audit by the auditor, who is expected to complete his work by the end of June 2018,” the Panama state-backed Panama Real Property Council said in a statement.