OPINION: Financial trickery costs Panama

Hoyporhoy. La Prensa, May 22

THE NATIONAL government intends to use the “turnkey” mechanism to finance part of the current presidential term.

These obligations would extend until the year 2022. The use of this type of contracting  is unfavorable for the State because it is paid for with an unnecessary financing cost, which in turn leads to surcharges and exposes public funds to the corruption and voracity of contractors and politicians.

Why use “turnkey”?  The only benefit that exists is of an accounting nature, since it generates the fiction that public finances are in order, while irresponsibly affecting The future financial viability of the State. The credit rating of our country is good enough to be able to hire the necessary contractors. Persisting in this financial trick punishes the future of Panamanians and obliges us to hire mediocre companies, which in the end must be financed by the State.

The Government should understand that it is time to avoid repeating the irresponsibility of the previous administration  in budgetary matters and cling to the blanket.