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.
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.
In Guatemala, the Congress of the Republic approved the amendments to Decree 57-92, which allow for an increase in the amounts of direct and low value purchases.
With the favorable vote of 82 congressmen, the Plenary of the Congress approved this Wednesday night, April 28, Decree 4-2021, reforms to the Law of State Contracting, informed the Legislative Body.
The bill being analyzed in the Congress of Guatemala seeks to regulate direct purchases, quotations, bids, reverse auction and, specifically, contracts granted in times of national emergency or urgency.
From a statement issued by the Congress of Guatemala:
Representatives from the Transparency and Probity Commission concluded the preparation of the preliminary draft of "general and integrating law of the national procurement system of the State", with the purpose of creating a new tool that allows resources to be executed in a fluid, transparent and safe manner.
The first meeting has been held of the technical panel, made up of the public and private sector, which will be working on a proposal to reform Guatemala's purchase and procurement system.
With the aim of preparing a proposal that will be sent to the Congress of the Republic, representatives from different private institutions and the Ministry of Public Finance (Minfin) met this week.
The Unified System of Public Purchases is used by only 36% of Costa Rican State institutions.
Although the law imposed September 13, 2017 as the date on which the entire State of Costa Rica had to manage its purchases through the Unified Public Procurement System (SICOP), on that date 64% of state institutions were not using it.
From October 28th amendments to the Law on Government Procurement, come into effect, including the concept of open contracts and ERAs.
The decree published in Diaro de Central America indicates that "...The reforms include a total of 25 items. The first of these states that in the process of acquisitions made with resources from external loans originating from public credit operations or donations to the State, its agencies, institutions or municipal councils, policies and established procedures will apply to financial agencies or donors, considering these provisions as a special rule."
In Guatemala reforms are being proposed to the Development Councils Act to eliminate interference from Deputies and Governors in tenders and management of projects.
Taking into consideration intervention on the part of governors as coordinators of the Community Development Councils (COCODES), and the pressures made by lawmakers on the appointment of its members, the bill on the General Budget of the Nation will contain a reform to the Development CouncilsAct, to avoid this kind of interference which eventually leads to acts of corruption.
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.
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, andthese 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.
The much awaited regulation on the Law on Government Procurement determines the process for ERAs, and sets out a methodology for reference prices.
On June 24 the regulations for the amended Law on Government Procurement will come into effect, establishing, among other things, how negotiations should be conducted, a definition for the information system for Contracting and Procurements, and procedures to be followed when setting reference prices in tenders.
Changes to the management of "turnkey" contracts and elimination of abbreviated tenders are part of the changes included in the bill which has already been approved by the Executive in Panama.
The bill was sent by the government to the National Assembly, where it will be discussed for approval.
From a statement issued by the Presidency of Panama:
In order to streamline public procurement processes and improve the levels of transparency in the State's procurement system, the Cabinet has approved a package of amendments to Law 22 of June 27, 2006, which regulates public procurements.
In addition to forbidding the participation of companies whose representatives have committed crimes against the public administration, a proposal has been made to eliminate hidden costs in tenders and modify the advance payment bonds to the companies awarded contracts.
The bill amending the Public Procurement Law 22 was prepared by the Ministry of Economy and will be presented to the Cabinet on 19 January, and then submitted for discussion to the National Assembly. One of the new features in it is the elimination of the hidden prices in tenders for best value with separate evaluation.
The elimination of the abbreviated tenders is part of the search for greater transparency, although it will mean more red tape.
The first major change in the law is the elimination of the changes made to it during the Martinelli administration which will return the law practically to its original features. One of the promises that the Public Procurement Directorate says it is sticking to is adhering to transparency, so that the procurement processes are as clear and transparent as possible, particularly as far as costs are concerned.
A law has been amended to give discretion to the Council of Secretaries of State to authorize the purchase of second hand machinery and equipment parts.
With the adopted reform the Executive Branch is authorized to purchase used equipment and machinery for the purpose of promoting efficiency and savings in public procurements. Although the ban on the state buying used goods holds, exceptions have been made in cases to be determined by the Council of Secretaries of State .
Citing the failure of the tender for the works on Diego Olguin Boulevard, CASALCO highlights the need for a total reform of the Procurement System for Public Works.
A press release by the Salvadoran Chamber of Construction Industry (CASALCO) states:
We regret the lack of participation of construction companies in the bidding process for the DIEGO DE HOLGUIN project and its subsequent declaration as void by the MOP and that this process has been accompanied by CASALCO from a technical perspective and especially from the field Transparency and Ethics.