Panama Has New Public Procurement Law

The new law eliminates abbreviated procurements (Licitación Abreviada) and decreases possible addenda to contracts.

Monday, May 2, 2016

The new rules for public procurement in Panama will come into effect six months after their promulgation by the Panamanian Presidency.

The text originally had a clause prohibiting hiring companies with convictions for corruption or other crimes. Opposition to this was based the fact that "... It was a totally impractical proposal ... [If this list is made] we would have the Directorate General of Public Procurement conducting judicial investigations in other countries. With bidding processes halted. The only thing that we we would achieve is that companies would hire lawyers to contest procurements" explained Deputy Jose Luis Varela in an article on Prensa.com. (article in Spanish)

From a statement issued by from the National Assembly:

The full National Assembly approved on its third reading Bill No. 305 amending the Single Text of Law 22 of June 27, 2006 which regulates public procurement.

The Directorate General of Public Procurement will guarantee that the acts carried out in the procedures for selection of a contractor are followed by the different state institutions and that in the contractual stage they are duly published and promoted by contracting entities, in accordance with the mechanisms established by this Law.

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