The National Assembly of Panama approved in third debate a bill that redefines the transfer of power in local governments by imposing a mandatory transition period for authorities. The core of the proposal is the creation of the so-called "duty of orderly transition," a legal figure that obliges both representatives of districts and mayors to document their management before leaving office. This measure aims to avoid administrative gaps and ensure the continuity of public services. The approval of this norm occurs in a context marked by questions about the management of public funds in local governments, an attempt to transparentize the real situation of each administration at the time of the handover.
Among the most relevant elements of the project is that the non-compliance with these obligations could lead to criminal liabilities. The outgoing authorities must compile and deliver a wide range of official documents, including current budgets, financial statements, bank accounts, inventories of assets, personnel records, and detailed reports on projects in progress and completed. The norm also requires the delivery of information on ongoing legal processes, as well as clearance certificates with entities such as the Social Security Fund and basic service providers.
In parallel, the reform introduces restrictions on the handling of public funds during the final months of the term. After the implementation of the so-called parallel decentralization, municipalities and community boards managed more than 214.5 million dollars without effective controls, which led to investigations and the arrest of representatives and mayors for alleged irregularities. The bill also contemplates the need for incoming administrations to have trained personnel to ensure a smooth transition. In particular, it prohibits local governments from committing more than 50% of their resources in the final six months of their term, except in cases of projects with previously defined schedules.
