State Contracting Law is Vetoed

In Guatemala, President Alejandro Giammattei decided to veto the reforms to the Contracting Law and announced that the bill will be returned to Congress with the respective observations.

Tuesday, June 1, 2021

According to Giammattei, the observations consist in the fact that the reforms to the Contracting Law should only apply to the purchases made by the Municipalities and not to the bids made by the institutions of the Executive.

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Through a message transmitted on the morning of June 1, the president explained that it is not possible for him to sign what was endorsed by Congress, since the law "does not have a transitory article that allows to know what happens with the purchases that are already underway and from when this law enters into force in a definitive way."

The reforms had already been rejected by the Guatemalan productive sector.

In mid-May, the business associations stated that these modifications had eliminated controls in the procurement processes, raising the amounts for direct purchases, generating incentives for discretion and corruption.

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Arguing that the reforms to the Contracting Law constitute a step backwards in terms of transparency, the Guatemalan business sector is asking President Alejandro Giammattei to veto what was approved by the Congress of the Republic.

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