Bill 27.

Summary.

The bill aims to make information about the conduct of public officials available to the public. It amends Law 59 of 1999 and expands the list of persons required to submit a sworn asset declaration when taking office and when leaving office. They include senior state officials, justices, judges, prosecutors, ministers, municipal authorities, members of the National Assembly (Asamblea Nacional), executives of public entities, members of boards that administer institutions or manage public funds, and officials who manage public funds under the Fiscal Code. The list also includes directors of the National Customs Authority (Autoridad Nacional de Aduana), the National Migration Service (Servicio Nacional de Migración), and the National Border Service (Servicio Nacional de Fronteras), as well as the head of any public institution. The declaration would be submitted by public deed within 10 business days of taking or leaving office.

The amendment to Article 2 of Law 59 of 1999 sets out the declaration’s contents. These include personal information, assets and liabilities; accounts and deposits in Panama and abroad; real property, associated rights, owners, value, and improvements; movable property and livestock; investments, shares, and ownership interests; vehicles; intangible assets; and accounts receivable. For certain movable property, identifying details are required when an item’s value exceeds 10,000 balboas (B/.10,000.00) or it is subject to registration under the Commercial Code. Salaries, allowances, pensions, and other income must also be declared, along with annual expenditures, debts paid off, and outstanding obligations, including information on creditors, terms, and repayment. The information would cover property in Panama and abroad, as well as income and its sources for the previous two fiscal years. The asset declaration would be public and available on the website of the Office of the Comptroller General of the Republic (Contraloría General de la República).

The article added to Law 59 of 1999 requires covered persons to update their declarations during the first month of each calendar year if they acquired, exchanged, or disposed of real property; if their assets changed by 20% or more; if their family status changed; if they acquired ownership interests or received inheritances or gifts; or if they paid off obligations. The Office of the Comptroller General of the Republic could order an update at any time, allowing no more than 30 days, or conduct an audit on its own initiative for possible unjustified enrichment. It would have to begin an audit when a covered person fails to submit a declaration or update within the statutory deadline.

Through an addition to Law 6 of 2002, the bill classifies both the asset declaration provided for in Law 59 of December 29, 1999 and the interest declaration provided for in Law 316 of August 18, 2022 as public information that is freely accessible. Institutions legally required to receive them would have to publish them on their websites. An addition to Law 81 of 2019 likewise provides that those declarations are neither confidential nor subject to restricted access.

The amendment to Article 18 of Law 316 of 2022 lists the contents of the interest declaration: identity and office; current activities and activities during the 12 months before taking office; concessions, procurement contracts, and status as a state supplier; specified employment or business relationships during the previous calendar year; gifts received during that period, subject to the stated family exceptions; and rights or interests in companies, foundations, and trusts in Panama or abroad. It permits voluntary disclosure of other potential sources of conflicts of interest and subsequent events. The National Authority for Transparency and Access to Information (Autoridad Nacional de Transparencia y Acceso a la Información) would publish the declarations and their updates. The final provision identifies the laws amended or supplemented and provides for the bill to take effect on the day after its promulgation in the Official Gazette.

Based on its contents, the bill relates to the Office of the Comptroller General of the Republic, the National Assembly, the National Customs Authority, the National Migration Service, and the National Border Service. It may be of interest to public officials, state institutions, state suppliers, financial institutions, companies, and organizations that administer public funds.