Spending rules eased for local authorities

While local authorities welcome the relaxing of contracting rules enabling them to dip into “petty cash”  for minor purchases, civil society is concerned that it has provided more opportunities for inappropriate use of taxpayer dollars.

The contracting procedure that differs from other institutions in the country,  is said to be a temporary measure until March 2021.

The Executive exempted them from the compulsory use of the online trading platform of Panama Compra, for minor contracting procedures.

Mayors, communal boards, and provincial councils will not meet the requirements established in the public procurement law, but will be governed based on the petty cash manual guides from the Comptroller General of the Republic.

The decision adopted by the Executive, led by President Laurentino Cortizo, was well received by local authorities consulted reports La Prensa.  Some argued that most of these entities do not have the staff or the internet to make online contracts.

Organized civil society hopes that the new procedure will not lend itself to avoiding supervision and control in the midst of the pandemic.

Municipalities, communal boards and provincial councils will no longer have to use the online quote system to make minor purchases.

Hiring up to $3,000 will be made using petty cash and the Comptroller’s guide. Those that exceed $3,000, but not $10,000, can be made with at least 3 quotes. And the contracts that do not exceed $25,000 must be done following several basic steps, among them, the publication on a board with the dates and specifications of the work or service