President José Raúl Mulino intends to present a bill to the National Assembly to amend the current Public Procurement Law. The goal of this initiative is to put an end to abuse by bad-faith participants who file challenges or claims without posting a bond. Mulino stated that the latest amendment to the law allows anyone, even if they are not a party to the bidding process, to file a challenge. According to the president, this creates "an open door for blackmail by people who don't know what the project is about and are claiming to see what they can get." Mulino acknowledged, however, that a challenge made in good faith is valid, as if one has an objection because the other party acted contrary to the bidding terms, the claim is filed along with the bond. In the president's view, this "mess" must be stopped, as he believes the current law is not working because the terms are being extended. "We have to fix that and also simplify the terms of this process, which is very valid," he assured. "If it is proven that there was bad faith, the government executes the bond," he highlighted.
Panama's President Proposes Stricter Public Procurement Law
Panamanian President José Raúl Mulino introduces a bill to amend the public procurement law to curb abuse from bad-faith filers who challenge bids without posting a bond.
