A resolution has been found to the dispute with the subsidiary of the Italian company Finmeccanica, which will withdraw from the country the radar and coastal surveillance equipment which was the object of the contract, and the Panamanian State will receive a credit for $32 million.
From a statement issued by the Foreign Ministry of Panama:
The Supreme Court has ordered the provisional suspension of a disputed contract with a subsidiary of Finmeccanica to install a digital mapping system.
The Supreme Court justified the provisional suspension as being "... in order to avoid the effects of the contract causing 'serious and impossible to repair damage to the community as it may affect the heritage of the Panamanian nation because of the delay in the decision on its merits that could be made by this court. '"
The Varela administration is sueing to nullify the contract signed with a subsidiary of Finmeccanica to develop a digital map for $22 million.
The lawsuit filed by the Ministry of the Presidency with the Supreme Court aims to nullify the contract signed in 2010 by the Martinelli administration, arguing that they have "motives distinct from public interest".
The Supreme Court has temporarily suspended the contract between the government and the Italian company Finmeccanica for the purchase of 19 radars.
The contract was suspended by the Third Division of Administrative Litigation of the Supreme Court (CSJ) after the Varela administration filed a lawsuit days ago and one year after stopping the execution of the project, being carried out by the company Selex, a subsidiary of Finmeccanica.
The government of Panama has filed a lawsuit to annul the contract for the purchase of 19 radars from the Italian company Finmeccanica and a temporary suspension while the claim is being settled.
A year after stopping the execution of the project to install radars provided by the company Selex, the Varela administration is now asking for the cancelation of this contract, arguing, among other things, that "... there is 'misuse of power' in contracting with the conglomerate Finmeccanica, which owns Selex. The government requested in the application presented to the Third Chamber of the Supreme Court the provisional suspension of the contract.
Due to failures in the operation of the 7 radars already installed, the government has decided to suspend implementation of the $120 million project with the Italian company Selex, a subsidiary of Finmeccanica.
From a statement issued by the Presidency of Panama:
The Government of the Republic of Panama, in its goal of protecting the interests of the Panamanian government, has decided to suspend development of the radar project being carried out by the company Selex of the Finmeccanica conglomerate due to "serious deficiencies in the performance of the installed equipment."
Panama is has purchased a Coastal Security System from Italian conglomerate Finmeccanica worth $231 million.
The contract states that different companies in the Italian group will provide components for the project: SELEX Sistemi Integrati will supply a monitoring system and cost control while AgustaWestland will contribute six AW139 helicopters to the Panama air-sea fleet.