An announcement has been made that $12 million will be allocated for the reconstruction of the Justo Arosemena legislative building in Panama City.
The chairman of the Legislative Committee on Infrastructure, Deputy Jose Antonio Dominguez, told Prensa.com that "... they will recommend the total renovation of the old building so that they can house there all of the working committees currently operating in the reverted areas. "
Why is it that in general public enterprises register losses while private ones normally earn profits?
An analysis of the issue by Rogelio Arce Barrantes in Prensalibre.cr summarizes the situation with the words of the popular [Spanish] saying "If its free, let's party."
Although Arce Barrantes focuses on Costa Rica, the situation can be extrapolated to other Central American countries, where there are state enterprises engaged in various business activities, whether in the production of goods or services.
In the Costa Rican National Development Corporation, there are 130 expendable personnel whose salaries are greater than $2,300 a month.
An article in Nacion.com quotes Wlliam Barrantes, the chief executive of the National Production Council (CNP), who manages the National Liquor Factory (Fanal), and runs the Institutional Supply Program (IAP), which sells food to ministries such as Justice (prisons), Security (police) and the Social Security Department (hospitals).
In light of increases of salaries of mayors and councilors, business leaders in El Salvador are urging the austere and responsible use of public funds.
A statement from the Chamber of Commerce and Industry of
El Salvador reads:
Public servants should not misuse the resources they manage
With the growing fiscal imbalance and severe economic crisis facing the country, we demand that officials in charge of state bodies and municipal councils show greater accountability and transparency in the management of public funds they are in charge of.
Corporatism in Latin American state institutions, especially those dedicated to the production of goods or services, means that its officials are losing sight of the sole reason for their existence, which is to serve the interests of the country and its citizens.
In Costa Rica a public company has rejected a proposal for a fiber optic network project recognizing that "it serves the country, but is not good business for the company."