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Source.
Update on September 22, 2009 : FRANCE 24 contacted the National Environmental Agency of Panama (ANAM), in charge of the examination. They found that the creature was in fact the decomposing body of a dead sloth, which lost its fur as a result of rotting in the water for too long. The teenager's account of throwing stones at a live animal and returning to find it dead was presumably a hoax. Reports of it being a huge sloth foetus were untrue.
Originally posted by roughycannon
Did you even read the comments in the vid or did you come on here looking for flags and stars?