The Economic and Finance Commission Blocks a Bill to Disqualify Corrupt Companies

In a controversial session, the National Assembly’s Economic and Finance Committee voted against a bill that sought to prevent the hiring of companies with a history of corruption in state contracts.  The proposal presented by deputy Augusto Palacios, from the independent coalition Vamos, sought to establish stricter criteria to veto companies involved in illegal acts, preventing their participation in tenders and public contracting processes.  However, after a close vote, the project was rejected by the majority of the members of the commission.  The project received four votes in favor, with the support of deputies Patsy Lee, from the Popular Party (PP), and Jorge Bloise, from Vamos, along with Eduardo Gaitán (Vamos) and Melvin Pérez (Panameñismo).  These deputies expressed their support, arguing that the measure was necessary to strengthen transparency in state contracts and combat corruption.

The proponents argued that the project would help restore public confidence in state institutions and ensure that public resources are used more efficiently and ethically.  This bill was obviously aimed as a reminder of the recent ‘Operation Jericho’.  Among the project’s detractors were Benicio Robinson Jr. and Arquesio Arias, both from the PRD, and deputies Ronald de Gracia and Víctor Castillo, from RM, as well as Manuel Cohen, from the CD. Palacios’ proposal also prohibits the “permanent” hiring of companies that, after having acknowledged the commission of crimes against public administration, against economic order, against collective security, against economic assets and against public faith, have entered into judicial collaboration or penalty agreements.  “For many years, various corruption scandals have shaken public confidence in state institutions, revealing an urgent need to strengthen the legal and regulatory frameworks governing public procurement, specifically when it comes to companies and individuals who have benefited from corrupt schemes in the awarding of works and services,” reads the explanatory statement. Currently, the ban does not extend beyond three years.