Corrruption scandals spark changes to procurement law

CORRUPTION investigations that have riled Panama for over 18 months have led to a number of proposed changes in public procurement procedures.

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 of the companies awarded contracts.

Law 22 was prepared by the Ministry of Economy and will be presented to the Cabinet on  January, 19 and then submitted for discussion to the National Assembly reports CentralAmericaData

One of the new features in it is the elimination of the hidden prices in tenders for best value with separate evaluation.
It is also indicated that “in no case may the contracting state entity make advance payments exceeding 20% ​​of the total contracted amount.”