government

Draft law on bids ready for debate

The proposal will set strict guidelines for avoiding the tendering process.

A draft law defining what items can be purchased directly by the government is ready for public debate, officials have confirmed.

The regulation seeks to curb the discretionary spending that is currently widely practiced throughout the government. This spending, which skips the bidding process, has been criticized because it allows officials to steer contracts to companies that may have political ties.

Among other things, the draft document defines in detail what can be considered a matter with "obvious urgency" and specifies the procedure to be followed by agencies and authorities to justify a direct purchase.

"I think it represents a major step forward," said Edilberto Ruiz, director of Contrataciones Públicas. "The bidding process will become much more transparent and it will limit the potential for abuse."

The government has created a web site, panamacompra.gob.pa, which will list contracts available for public bids. This will help companies to compete for contracts that they may not have previously known about.

Direct purchases must also be listed on the web site.