Panama: Vetoes of Procurement Law

President Varela signaled the need to include medicine purchases in the law, among other objections, and did not make mention of the debarment of companies with foreign convictions for corruption.

Monday, June 20, 2016

The main objection put forward by various social groups to the new law on state procurement is that it does not establish the exclusion of businesses convicted abroad for corruption from being state providers, and these groups have asked President Varela to veto the law for that reason .The president vetoed 8 articles of the law, but did not say anything in his observations about that particular topic.

From a statement issued by the Presidency of Panama:

The President of the Republic, Juan Carlos Varela partially vetoed Articles 1, 24, 33, 35, 36, 50, 66 and 77 of Bill 305, which amends Law 22 of 2006, which regulates public procurement and introduces other provisions.

The decision of the President is based on the inconvenience of Article 1 of Project 305, which contains the provisions initially proposed in relation to the procurement of goods, services and works, in particular for the public health sector, and introduced in a first debate in the Assembly.

More on this topic

Yes to the Container Port

June 2018

President Varela has vetoed the bill that repealed the concession contract to build and operate a container terminal in Rodman, which had been awarded to PSA Panama International Terminal.

The bill approved by the National Assembly in mid-April contained an article that repealed the concession contract with PSA Panama International Terminal, approved more than three years agoAt the time, the decision of the deputies was strongly criticized by the Panamanian business sector, which described it as a threat to legal security.

Veto of Controversial Food Law in Panama

June 2017

The bill to reform the decree that created the Panamanian Food Authority has been vetoed by President Varela, amid pressure from the agricultural sector.

The presidential veto over the bill comes days after the Panamanian guild of private companies asked the executive branch to intervene, amid protests by agricultural producers in the province of Chiriquí. 

President of Panama Vetoes Free Parking

March 2015

Citing it as unconstitutional and inconvenient the Executive has objected two articles of a bill which aims to make it compulsory to provide three hours of free parking at shops.

In a letter sent to the President of the National Assembly, President Juan Carlos Varela argues that the bill discourages the construction of more parking lots in shopping centers, in addition to those required by the regulations.

Veto on Privatization of Cold Chain

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Panamanian Congress has welcomed the partial veto of a bill which would allow the privatization of 49% of the shares of the Cold Chain.

"... The project was approved on its first debate just 24 hours after President Martinelli sent the Assembly a note objecting to Article 4 of the bill, which stated that if the case arose where the State needed to capitalize the company Mercados Nacionales de la Cadena de Frío, SA., it could dispose of 49% of its share capital", reported

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