Politics Economy Country 2026-01-16T22:06:44+00:00

Panama's Comptroller Rejects Waste Collection Contracts Due to Legal Issues

The Republic of Panama's Comptroller General rejected solid waste collection contracts in the San Miguelito district after identifying multiple inconsistencies. Payments for excess tons were found, along with attempts to create a dual service system, leading to a legal deadlock.


Panama's Comptroller Rejects Waste Collection Contracts Due to Legal Issues

The Comptroller General's Office reported that after a comprehensive, technical, and legal analysis, it did not endorse the contracts related to the solid waste collection service in the district of San Miguelito, due to multiple inconsistencies that prevent their legal and administrative viability. This definitively closed any possibility of approving parallel contracts. On the other hand, payments for unauthorized excess tons were detected, without legal backing or an approved budget. Signing new contracts in this situation, according to the Comptroller, would create a double operation: the AAUD collecting garbage while, at the same time, private companies with new contracts. A legal tangle that does not pass the filter. With all of that on the table, the Comptroller closed the door. The key point is this: the service was already in the hands of the State. A legal clash that cannot be endorsed. According to the Comptroller, these are essential data that should have been defined from the start and adjusted to the terms of reference. Two operators doing the same thing. Additionally, they indicate that serious technical and administrative shortcomings were found during the review. Furthermore, the AAUD had already been operating in nine townships since January 1st for sanitary reasons. A basic requirement that simply was not in place. It was not clear how many tons were to be collected, how much would be paid per month, or when the payments would be made. As of January 13, 2026, the Panama Urban and Domestic Cleaning Authority (AAUD) was authorized—by executive order and based on legal grounds—to take direct charge of the collection, transportation, and final disposal of waste in the district. Companies without mandatory permits from the AAUD itself. No endorsement was given. Money in the air. Without a mandatory health operation permit required by decree for activities that directly affect public health.

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