Plan to veto contracts with corrupt bidders

ITH THE shadow of the Brazilian construction giant Odebrecht. looming over the debate a number of deputies have presented to the plenary of the National Assembly a motion to change the law governing companies convicted of crimes such as corruption from receiving government contracts.

The proposal was presented at the second debate of the bill reforming the public procurement law on Tuesday April 26

The new proposal provides that the government can cancel a contract if a “situation can affect the local and international image of the country, as well as possible economic damage.”

The proposal was presented by the PRD deputies Leandro Avila, Javier Ortega, Iván Picota, Néstor Guardia and Zulay Rodríguez; Partido Popular Deputy Juan Carlos Arango and independent Ana Matilde Gómez.

The current bill does not include companies that have been convicted of crimes outside of Panama which has raised questions about Odebrecht which continues to receive contracts from Panama while its former president Marcelo Odebrecht and many of its executives  have been jailed in Brazil.

The proposal was submitted after the plenary rejected a minority report submitted by PRD deputies to stall the discussion of the bill until the next legislative session in July.

Odebrecht has been awarded contracts totaling  over $9 billion by successive Panama governments, including construction of Metro Line 2 and a Colon redevelopment project, and recently a contract, issued through the mayor’s office  for building sidewalks in Panama City