Varela under fire over Assembly corruption call

THE NATIONAL Assembly “will pay a high political price for not having closed the way to international corruption,” warned independent deputy Ana Matilde Gómez after its adoption of a law reforming public procurement.

Her comments were echoed by civil society and business groups after the Assembly rejected , a proposal that sought to disqualify from state tenders, companies convicted of corruption in foreign and local courts.

The president of the Chamber of Commerce, , Jorge Garcia Icaza, said the Assembly “sends the wrong message to the country and the international community”, while the Independent Movement (Movin) considered that the government of President Juan Carlos Varela and the Assembly “have defrauded transparency expectations of the population”

Business sectors, civil society and political groups warned that Panama sent a wrong message to the country and the world, after the National Assembly followed the Executive line of  not vetoing state contracts with companies convicted by courts abroad for acts of corruption, among other crimes.

The Brazilian construction giant Norberto Odebrecht,  whose  president and numerous executives has been jailed for corruption, has received over $2.5 billion in contracts from the current administration, and recently gained a near $100 million contract from the city, whose mayor, Jose, Isobel Blandon, is a member of the ruling Panameñista  party

On Friday. April 29,  the National Assembly approved on third reading the bill 305 amending Law 22 of 2006 on public procurement, after the Thursday night rejection of the proposal promoted by deputies from different parties to disbar from  State contracts, companies convicted abroad for various offenses.

Chamber of Commerce, president  Icaza,  said that in the international situation that exists for Panama: “we are sending a wrong message to the country and the international community, by not incorporating concepts related to crimes against public administration, locally and internationally, in amending the law regulating Procurement “.

Horacio Icaza, of   Movin  said  ” It has not sent a message to the world that Panama actually has zero tolerance to corruption. It has been left open to participate to any company in the world, whether or not convicted. That’s a terrible message.”

He recalled that a technical committee with the participation of civil society, business sectors, representatives of public institutions and the Comptroller General reached consensus on an amendment to debar companies convicted abroad.

But, he said, that the proposal was amended in the Cabinet which  agreed to bar  only domestic or foreign companies convicted under Panamanian jurisdiction.