business

BNP to upgrade computers

la prensa

national bank of panama1143994

The government-owned National Bank of Panama has purchased a $5.1 million computer system without using the competitive bidding process, arguing that any delays could have brought the country's banking system to a halt.

The computer, which was manufactured by IBM and purchased through GBM Panama, will replace the bank's current mainframe, which officials say is on the verge of collapse.

The purchase was approved by the Cabinet Council in a resolution published in the government's Official Gazette on Nov. 27. That same day, the General Accounting Office endorsed the agreement.

Bank Manager Juan Ricardo De Dianous explained that, before negotiating with IBM, three events were held with other potential providers, but he said they did not meet minimum requirements.

“We try to make all purchases through public bidding, but the urgency meant that we had to recruit a provider directly,” he said.

He explained that the purchase is part of an overall program to upgrade the bank's technology. In the coming days, it is expected to put out to bid a proposal to upgrade its integrated management system, which will cost an estimated $17 million.

Bank officials estimated that the current computer system was operating at 90 percent capacity, while the industry standard is closer to 70 percent. This put the system in danger of collapsing.

If that happened, it would have had a ripple of effects across the entire country's banking system, as well as internationally.

“The equipment and systems of the National Bank of Panama are over 20 years old, which puts the bank in a precarious situation,” said a resolution approved by the board in October.

The antiquated equipment also affected the growth and expansion of the bank.

“We could not have Internet banking, we could not open more branches,” said Luis Díaz, the bank's manager of information technology BNP.

The decision has been criticized by some, who said that the bank waited too long to make the upgrade.

“Why did they wait so long to acquire the equipment if they knew that the system could collapse,” asked former manager Luis H. Moreno.

But De Dianous said that the bank has been trying to upgrade the equipment for two years, and only recently was able to find a provider that could meet the bank's requirements.

“We are not hiding anything,” the bank manager said. “Everything has been done in the open.

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