Military Industry Will Not be able to Act as Commercial Distributor

The company belonging to the Guatemalan Army will no longer be able to sell goods between State agencies and municipalities.

Friday, April 12, 2013

This dependency under the Ministry of Defense of Guatemala, raised $43 million in contracts in less than eight months of the current administration.

"The institution has been questioned by opposition deputies, because late last year, the Executive authorized an expansion of the operational purposes for which it was created. This amendment details the ability to import and distribute all kinds of equipment with the Army of Guatemala and other public and independent entities" reported Elperiodico.com.gt

This new agreement provides that the Military Industry (IM), will no longer be an "intermediary" and that the distribution of items, goods, equipment and supplies will be performed exclusively with the armed forces.

According to the Legal Affairs Department of the Auditor General (CGC), public sector institutions should not have a business purpose. "Profit is beyond their goals, tasks and powers."

The reason for the reform was to "review the objectives for which the IM was created" said Erick Escobedo, spokesman for the Ministry of Defense.

¿Busca soluciones de inteligencia comercial para su empresa?



More on this topic

More Control over the Energy Market

February 2020

Through the creation of four new state-owned companies, President Ortega seeks to control the exploration and exploitation of oil in Nicaragua, as well as the import, storage, distribution and marketing of gas and fuels.

With the approval of the law initiatives, the government seeks to transfer the control that Alba de Nicaragua S.A.

Regional Conflict in Energy Trading

September 2019

Electricity generators claim that the Regional Operator Entity arbitrarily disconnects Guatemala from the rest of the countries in the region, and that since 2016 up to date the disconnections already add up to 600 hours.

The National Association of Generators of Guatemala (ANG) claims that the Regional Electricity Interconnection Commission (CRIE) does not comply with the resolutions of the Central American Court of Justice (CCJ), which ordered Guatemala to stop disconnections from the regional electricity system.

Another Company Interested in Puerto Quetzal

January 2017

While pressure grows in Guatemala for the contract with APM Terminals to be annulled, the US company American Ports has expressed interest in operating the port.

Following opposition on the part of Congress to the possibility of approving a bill put forward by the executive branch proposing the granting of a direct concession to APM Terminals, now the Comptroller General of Accounts (CGC) has recommended declaring the contract void and starting a new process.

Army and Police in Guatemala Customs Offices

October 2013

The Guatemalan government has established that the SAT and the Ministries of Defense and Government should work together in order to achieve compliance with the Customs Act.

A Government Agreement states that both ministries should coordinate operations with the Superintendency of Tax Administration (SAT) in order to reach this goal for a period of three months.

ok