Politics Economy Country 2025-11-12T01:50:20+00:00

Adjust aircraft purchase to combat organized crime and protect Panamanian society

Panama's Cabinet approved a resolution to purchase four A-29 Super Tucano aircraft for over $76 million. The goal is to enhance security and combat drug trafficking under the Social Responsibility Law.


Adjust aircraft purchase to combat organized crime and protect Panamanian society

The Council of Cabinet approved Resolution No. 129-25 today, amending Article 1 of Cabinet Resolution No. 23 of March 11, 2025. The resolution authorizes an exceptional procurement procedure between the Ministry of Public Security (Minseg) and the company Embraer, S.A., for the 'supply of 4 A-29 Super Tucano aircraft for the sum of seventy-six million three hundred fifty-seven thousand three hundred fifty-five US dollars and 70/100 ($USD76,357,355.70), which includes ITBMS, plus the amount of financing.' This is to align the purchase with the acquisition procedure for the aircraft, as permitted by the Social Responsibility Law. The aircraft will reinforce the surveillance of the country's airspace and maritime territory, as well as combat organized and international crime, including drug trafficking, which generates a series of negative repercussions for Panamanian society. The budgetary amounts for this acquisition must cover, in addition to the supply payments and financing under Partial Payment Accounts (CPPs), the corresponding taxes for the importation of the aircraft, which will be handled through collection management, as established in the approved resolution. On March 11, the Council of Cabinet, through Cabinet Resolution No. 23 of March 11, 2025, approved the contracting through an exceptional procedure for the sum of sixty-eight million two hundred two thousand three hundred forty-one US dollars and 44/100 ($USD68,202,341.44). However, the validity of the contract corresponded to annual payments scheduled for fiscal years 2025, 2026, and 2027, which exceed the fiscal spaces permitted by the Social Responsibility Law, in accordance with the fiscal consolidation strategy established by the Ministry of Economy and Finance. Now, the National Aeronaval Service, through the Ministry of Public Security (Minseg), in order to comply with the guidelines established by the Ministry of Economy and Finance and evaluated by the Public Financing Directorate, will carry out the contracting through an exceptional procedure financed entirely through Partial Payment Accounts (CPPs), in a period covering fiscal years 2025 to 2034, up to thirty million US dollars ($USD30,000,000.00). On August 25, the MEF issued Note MEF-2025-58001 expressing its no objection to the exceptional contracting of financing of up to thirty million US dollars ($USD.30,000,000.00), within the framework of the process with the company Embraer S.A., an amount that will go to the negotiation process. Thus, the total amount of this contract is seventy-one million three hundred sixty-two thousand fourteen US dollars and 40/100 (USD.71,362,014.40), plus four million nine hundred ninety-five thousand three hundred forty-one US dollars and 30/100 (USD.4,995,341.30), in concept of 7% ITBMS, totaling seventy-six million three hundred fifty-seven thousand three hundred fifty-five US dollars and 70/100 (USD.76,357,355.70). For the purpose of covering the expenses that this acquisition entails, Minseg and the Ministry of Economy and Finance must carry out the corresponding studies and evaluations to obtain the best financing to cover the total cost of this acquisition, under better interests for the State. The news 'Adjust aircraft purchase to combat organized crime and protect Panamanian society' was first published in La Verdad Panamá.