Draft bill 59.

Summary.

The draft bill would require the Executive Branch and the relevant public institutions to conduct technical, financial, administrative, and operational audits of public resources, funds, and assets used during the state of emergency declared by Cabinet Resolution No. 11 of March 13, 2020, from March 2020 through December 2022, inclusive. It extends that obligation to other measures of a similar nature declared by a competent authority under Article 55 of the Political Constitution when they involve the use of public resources. Its provisions would apply to state institutions, autonomous and semi-autonomous entities, state-owned enterprises, community boards, local governments, and individuals or legal entities that received, administered, or spent public funds, donations, or assistance connected to states of emergency. Investigations and audits would be governed, among other principles, by legality, transparency, accountability, due process, and integrity.

The bill assigns overriding public interest to information about actions, contracts, purchases, transfers, expenditures, and other activities carried out during national or local emergencies. It requires that information to be made public without applying Articles 14 and 15 of Law 6 of 2002 and prohibits invoking confidentiality to shield political decisions, prevent public oversight, or restrict public knowledge of how funds were used. Documents concerning contracts, purchases, donations, tenders, prices, and beneficiaries would be accessible through the digital platform of the National Authority for Transparency and Access to Information (Autoridad Nacional de Transparencia y Acceso a la Información). Within six months of the law’s entry into force, the obligated entities and persons would submit reports to the Office of the Comptroller General of the Republic (Contraloría General de la República) on contractor selection and on the technical, financial, operational, and administrative management of resources. The reports would cover suppliers, contracts, purchases, ultimate beneficiaries, the source and destination of resources, outcomes, and the officials responsible for decisions. They would be published on platforms offering free and open access.

The Office of the Comptroller General of the Republic would conduct special, comprehensive, and public audits of procurement, subsidies, social programs, trusts, donations, and other uses of funds, taking into account observations from institutional auditors. It would send certified copies of evidence of possible crimes to the Public Prosecutor’s Office (Ministerio Público) for investigations to be initiated on its own motion. The Public Prosecutor’s Office and the Office of the Comptroller General would establish an evaluation and follow-up protocol. The Office of the Comptroller General of the Republic would provide a platform and telephone lines for anonymous or signed public complaints, to be assessed with due process.

Failure to submit reports without justification would carry a fine of up to 50,000 balboas (B/.50,000.00), disqualification for up to five years, and temporary suspension of certain budget allocations. Serious irregularities that do not constitute crimes could be referred to the National Assembly (Asamblea Nacional), the Court of Accounts (Tribunal de Cuentas), or another competent authority. Harm to the State would give rise to repayment or compensation. Following investigations and the relevant judgment, the bill provides for the return of resources, administrative penalties, compensation for financial loss, and proportionate disqualification.

A Special Commission for Accountability in States of Emergency (Comisión Especial de Rendición de Cuentas en Estados de Emergencia) would be established as a temporary body with technical autonomy and representatives of public entities, civil society, and the Chamber of Commerce, Industries and Agriculture (Cámara de Comercio, Industria y Agricultura). It would centralize reports, coordinate audits, issue quarterly public reports, channel complaints, and recommend referrals. Its members would be accountable for noncompliance, negligence, or omission. It would initially serve for 24 months, extendable by resolution of the National Assembly, and submit a final report before its dissolution. The bill sets deadlines of 30, 60, and 90 days for the technical guidance, the platform, and the start of audits; provides for a special budget allocation and precedence over conflicting rules of equal or lower rank; requires implementing regulations from the Executive Branch within 90 days; and would enter into force upon promulgation.

In light of their functions and representation, the bill also concerns the Ombudsman’s Office (Defensoría del Pueblo) and the Budget Committee (Comisión de Presupuesto), in addition to the authorities mentioned above. It could also be of interest to or affect suppliers and contractors, entities that administer public funds, civil society organizations, and the commercial, industrial, and agricultural sectors.