Varela vetoes contract cancellation bill

President Juan Carlos Varela has vetoed as “unconstitutional” a bill passed by the National Assembly in  April, that repealed a  government contract with  PSA Panama International Terminal, for the construction and operation of a container port in Rodman.

The Presidency of the Republic explained that the Constitution prohibits the Assembly from issuing laws that repeal or modify income contemplated in the General Budget of the State. The PSA concession represents – according to the Presidency – a tax of $350 million, “plus about $27  for the right of use and wharfage “.

The Presidency  also said that there is a ruling by the  Supreme Court “which deals with matters totally alien to the original project that is discussed by constitutional requirement, that tagged-on items must have received the first legislative debate to be the Law of the Republic.”

The Assembly repealed the contract law agreed in 2015 between the Maritime Authority of Panama (AMP) and PSA Panama International Terminal, through an item tagged on to a bill on the opening of companies and sale of liquor in residential areas,  proposed by  PRD deputy Iván Picota.