"Panau went through many troubled times, so I was going to bring Panau to the future, and that was my dream." - Papa Panay
Note: the DLC is not supposed to be canon, so some stuff may or may not be true.
All that can be said about Papa Panay is that he was born in 1951 and died in 2000, but in the DLC Supernatural Nightmare, he reveals more about his past and it's also the first time we see him.
Before his rule, Panau was ruled by a dictatorial monarchy (who Papa compares them to the Shah) who ruled with an iron fist. The monarchy had a military conscription for all 16-year-old teenagers, and one of them was Papa Panay.
He was recruited in 1966, and in 1971, Pandak was born in Kuala Cherah village when his father, Papa, was about 20 years old. While in the military, Papa Panay saw the oppression of Panau's monarchy and vowed to change Panau for the better.
He was made a general in 1978, but he conspired to overthrow the monarchy. In 1980, Papa Panay's coup happened and he overthrew the monarchy through a military takeover. He declared his own title "President" and ruled Panau as a benevolent dictator.
He turned Panau from a peasant society into an industrious high-profit but semi-isolated country.
In 1986, a massacre was committed by the crazed Ismail Omar who was rewarded for this massacre, but Papa Panay was unaware that Ismail was responsible or even rewarded. Had he known about the deaths though, he would've Ismail killed for that massacre.
Despite ruling as a benevolent dictator, Panau still had flaws such as a one-party state and a Supreme Leader with unlimited authority.
He also mentions that he established great relations with the Ulars.
Meanwhile, Pandak was jealous of his father, believing him to greedy, and killed Papa in a car bomb in 2000. But Pandak was a hypocrite as he was power hungry himself. He took over the country and turned it into a dictatorship.
Papa Panay was now a ghost due to his death and was doomed to witness the oppression of his son who was now his successor. Since Papa's constitution gave him unlimited power, his son can do whatever he wanted so he stripped away the rights of the natives and gave them to foreigners.
9 years later, Papa witnessed Rico overthrow his son and save Panau. He wanted to meet Rico but couldn't as Rico had already left Panau after the ending cut scene of Just Cause 2.
In 2014, The Shah returns from the grave and attempts to take over Karthstan and the whole world. Rico meets Papa Panay who saves him from the savage ghosts chasing after him. He explains himself and Rico recognizes him. Papa Panay was glad to meet Rico and thanked him for the overthrow of his son. The two rescue Tom Sheldon and Maria Kane from the savage ghosts. The gang now plans to stop the Shah before it is too late.
"Ah, I see you're the "Dictator Removal Specialist" Rico Rodriguez. Allow me to introduce myself. I'm Papa Panay, former leader of Panau."
"You were the talk of the town when you overthrow my bastard son Pandak Panay. Well, it looks like he has returned from the grave also."
"Panau went through many troubled times, so I was going to bring Panau to the future, and that was my dream."
- Papa Panay is the only returning character to be seen in real time, as he is dead, he is now a ghost.
- Papa Panay is the only benevolent dictator to be seen in the series.