Bill 325.

Summary.

The bill restricts public servants’ direct or indirect acquisition of state property while they perform public duties and for five (5) years after those duties end. It would cover people elected, appointed, or contracted to provide public services, whether paid or unpaid, including officers of enterprises with state ownership or control and autonomous or semi-autonomous entities in the Republic of Panama (República de Panamá). It defines conflicts of interest and treats spouses, de facto partners, specified relatives, business associates, and legal entities owned or controlled by a public servant or those persons as connected persons. Covered assets include state movable and immovable property, property reverted from the Panama Canal, seized or forfeited property, property awarded to the state, digital assets, investments, state bonds, and other property subject to public-law transfer rules.

The disqualifications would apply during service and after departure, to public servants and connected persons alike. They would cover tenders, auctions, judicial sales, direct sales, awards, exchanges, other disposals, acquisitions through third parties, and sham transactions. For disqualification from contracting with the state, the bill refers to Law 22 of 2006, as amended by Law 153 of 2020. A public servant facing a potential conflict of interest in a property acquisition or disposal would have to report it immediately in writing to a superior and the National Authority for Transparency and Access to Information (Autoridad Nacional de Transparencia y Acceso a la Información), refrain from participating, and have the declaration placed in the administrative file. The declaration would also be published on ANTAI’s Transparency Portal under Law 316 of 2022.

Transactions contrary to the bill would be void by operation of law upon judicial declaration; the property would return to the state without compensation to purchasers. Earlier proceedings or purchases could be investigated on the authorities’ own initiative where there are indications or suspicions of embezzlement or another offense against public administration. Violations would carry a fine equal to twice the property’s value, disqualification from public office for five (5) years, civil liability for losses to the state, and applicable criminal or administrative penalties. The State Property Directorate (Dirección de Bienes Patrimoniales) of the Ministry of Economy and Finance (Ministerio de Economía y Finanzas) would supervise compliance together with the Office of the Comptroller General of the Republic (Contraloria General de la República), the Anti-Corruption Prosecutor’s Office (Fiscalía Anticorrupción), the National Land Administration Authority (Autoridad Nacional de Administración de Tierras), and the transparency authority. The Public Prosecutor’s Office (Ministerio Público) would act on its own initiative where a crime is suspected.

The bill coordinates its rules with the Tax Code (Código Fiscal), Law 22 of 2006, Law 153 of 2020, Law 33 of 2013, Law 316 of 2022, and Executive Decree No. 64 of 2011 (Decreto Ejecutivo N.o 64 de 2011), giving its disqualifications precedence on this subject. It orders publication of a list of violators subject to Law 81 of 2019, repeals conflicting provisions, directs the Executive Branch (Órgano Ejecutivo) to issue regulations within six (6) months, and makes commencement depend on publication in the Official Gazette. Its provisions concern public bodies managing state property and participants in acquisition, procurement, and asset-transfer processes.