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 Chambers of Industry, Construction, Commerce and Agriculture agree that the reforms to the State Contracting Law constitute a step backwards in terms of transparency and open the door to greater opacity in public spending.
In April 2021, the deputies approved the amendments to Decree 57-92, which among other things allow for an increase in the amounts of direct and low value purchases.
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.
In the last days of April 2021 the Guatemalan deputies approved the modifications to Decree 57-92, which among other things allow for the expansion of the amounts of direct and low value purchases.
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:
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.
The Inter-American Development Bank has warned that it will make conditional a loan of $419 million for the 2016 on restructuring of the Tax Administration and adoption of anti-corruption measures.
The loans granted by institutions such as the Inter-American Development Bank (IDB) and the World Bank to Guatemala are in danger if key transparency aspects relating to the functioning of the Superintendency of Tax Administration (SAT) are not restructured, as well as the Law on Procurement and Contracting State.
With the approval of the latest amendments to the Law on Public Procurement acquisitions are limited to open contracts and the involvement of public officials and suppliers is prohibited.
Officials and their families are not able to sell goods or services to the state while they are performing their duties, nor may they act as suppliers who have financed election campaigns with annual amounts exceeding $3,800 nor political organizations in the electoral process immediately prior to the administration that is in force.
Banning state suppliers from financing political campaigns, implementing reverse electronic auctions and technical specifications for medicine purchases, are part of the proposed reforms.
The business sector is demanding a new Public Procurement Act to promote competition and transparency in the procurement of goods and services by the State.
In a statement released by elperiodico.com.gt, the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Committee (CACIF), "... was in favor of an amendment to the Law on Government Procurement in order to improve purchasing processes from government entities."
The government will be allocating $22 million to buy 858,000 sacks of fertilizer, in direct form, after drawbacks in negotiations with the company Disagro.
"... without being subject to the requirements of a tender and quotes" and "...
The Ministry of Government of Guatemala has awarded $5.3 million in contracts for road signs, via 68 separated purchasing acts.
This practice meant that in almost every event there was just one bidder, and that contracts could be awarded in just three weeks, avoiding the greater transparency and control present in a public tender.
The Department of Migration has been authorized to acquire the passport books without a bidding process for a value of up to $3 million.
From a press release published by the Diario de Centro América:
The government has authorized the Ministry of Interior (MINGOB), through the Directorate General of Migration (DGM), under their strict liability, to acquire, without being subject to a tender or quote, 600,000 books for passports.
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