PANAMA CITY, May 5 (Reuters) -

Panama's former security minister Jose Raul Mulino built a

commanding early lead in the country's presidential election

with almost half the votes counted, preliminary data showed on

Sunday.

With more than 45% of the ballots tabulated, Mulino was

pulling ahead with 34% of the tallied votes, with second placed

Ricardo Lombana getting 25%.

Mulino was one of the favorites for the presidency after

he replaced popular ex-President Ricardo Martinelli on the

ballot after Martinelli was barred from running due to a money

laundering conviction.

Martinelli played a key role in the election despite being

holed up in Nicaragua's embassy in Panama's capital, where he

sought asylum. Many voters saw Mulino as a proxy for Martinelli,

though opponents called him a puppet of the former president.

Nicaragua granted Martinelli asylum but Panamanian

authorities have blocked him from leaving the country. Mulino

visited Martinelli at the embassy after casting his vote on

Sunday.

Whoever wins the presidency will face a daunting task of

mending social divisions and regaining the faith of an

electorate fed up with political graft.

The new president will also need to fix Panama's pressing

economic problems, tackle corruption, and restore the country's

reputation as an investment haven.

Mulino has promised to usher in prosperity through ambitious

infrastructure investment and to keep Martinelli out of jail.

Ricardo Lombana, who also ran in the past election, has

portrayed himself as an anti-corruption crusader who promised

cuts to government spending.

Magali Rosa, 60, a retiree, said she voted for Mulino

because she felt he could bring more jobs and improve security,

and that during the presidency of his backer, Martinelli, there

was "a lot of money" for everyone.

Panama's electoral rules do not require a run-off, making

Sunday's result final. Results are expected within a few hours

and the winner will take office on July 1 for a five-year term.

No single party is forecast to win control of the

legislature, where 885 seats are up for grabs.