State Contracting Law is Vetoed
Tuesday, June 1, 2021
In Guatemala, President Alejandro Giammattei decided to veto the reforms to the Contracting Law and announced that the bill will be returned to Congress with the respective observations.
According to Giammattei, the observations consist in the fact that the reforms to the Contracting Law should only apply to the purchases made by the Municipalities and not to the bids made by the institutions of the Executive.

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Through a message transmitted on the morning of June 1, the president explained that it is not possible for him to sign what was endorsed by Congress, since the law "does not have a transitory article that allows to know what happens with the purchases that are already underway and from when this law enters into force in a definitive way."

The reforms had already been rejected by the Guatemalan productive sector.

In mid-May, the business associations stated that these modifications had eliminated controls in the procurement processes, raising the amounts for direct purchases, generating incentives for discretion and corruption.

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More on this topic
Growing Rejection of the New Contracting Law
May 2021
In Guatemala, the Chambers of Industry, Construction, Commerce and Agriculture agree that the reforms to the State Contracting Law constitute a step backwards in terms of transparency and open the door to greater opacity in public spending.
In April 2021, the deputies
approved the amendments to Decree 57-92
, which among other things allow for an increase in the amounts of direct and low value purchases.
Request to Veto the State Contracting Law
May 2021
Arguing that the reforms to the Contracting Law constitute a step backwards in terms of transparency, the Guatemalan business sector is asking President Alejandro Giammattei to veto what was approved by the Congress of the Republic.
In the last days of April 2021 the Guatemalan deputies approved the modifications to Decree 57-92, which among other things allow for the expansion of the amounts of direct and low value purchases.
Panama: Vetoes of Procurement Law
June 2016
President Varela signaled the need to include medicine purchases in the law, among other objections, and did not make mention of the debarment of companies with foreign convictions for corruption.
The main objection put forward by various social groups to the new law on state procurement is that it does not establish the exclusion of businesses convicted abroad for corruption from being state providers, and these groups have asked President Varela to veto the law for that reason .The president vetoed 8 articles of the law, but did not say anything in his observations about that particular topic.
Changes to Public Procurement Act
February 2016
Changes to the management of "turnkey" contracts and elimination of abbreviated tenders are part of the changes included in the bill which has already been approved by the Executive in Panama.
The bill was sent by the government to the National Assembly, where it will be discussed for approval.
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