The World - News from Jan. 18, 1988

The Panamanian government, dominated by military strongman Manuel A. Noriega, has for years doled out U.S. foreign aid to the general’s political backers, according to a report by U.S. investigators. The 1987 internal report from the Agency for International Development is the latest allegation of corruption against Noriega, who is under pressure by the Reagan Administration and internal opposition to step down. The Panamanian housing agency, the AID report said, required applicants for U.S.-sponsored low-income shelter to declare their party affiliation. The report found that many of those who listed the ruling party received preferential treatment. Noriega also has been the target of drug-trafficking investigations by a congressional committee and a federal grand jury in Miami.