Draft bill 90.

Summary.

The draft bill establishes a general framework to prohibit and regulate unjustified benefits granted to public officials and senior authorities of the Panamanian state. It also calls for stronger proactive transparency in the use of public resources. Its scope covers public officials of the Central Government (Gobierno Central), officials elected by popular vote, Ministers and Deputy Ministers of State, justices of the Supreme Court of Justice and other courts, and any public official who administers, disposes of or authorizes the use of state funds, property or credit.

The bill would prohibit a public official from receiving, arranging, authorizing or granting a benefit, gift, convenience or economic advantage financed directly or indirectly with state resources unless it is strictly and reasonably connected to the duties of the office. The listed cases include public payment for personal mobile phone service; official allowances and travel exceeding established limits; bodyguards and security personnel assigned to domestic or personal purposes; and the use of postal privileges, institutional payment cards or official fuel for purposes other than institutional ones. The list also covers institutional events unrelated to an agency’s objectives or used to pay personal expenses, benefits for purchasing vehicles for personal use, lottery booklets or contracts of the National Charity Lottery (Lotería Nacional de Beneficencia), selective or collective transport permits, and elective medical procedures paid for with public funds. The general prohibition would also cover other benefits falling within its terms.

The Office of the Comptroller General of the Republic (Contraloría General de la República) would oversee compliance with the proposed law concerning the management of public funds. The Office of the Attorney General for Administration (Procuraduría de la Administración) would conduct and decide disciplinary proceedings arising from violations, while the Public Prosecutor’s Office (Ministerio Público) would retain jurisdiction when the facts constitute a crime. Every complaint would undergo a preliminary investigation within no more than thirty business days and receive a final decision within no more than ninety business days, measured from its admission.

The draft bill classifies violations as minor, serious or very serious, without excluding any applicable civil or criminal liability. Minor violations would lead to a written reprimand and full repayment of the amount improperly received. Serious violations would lead to suspension from office for thirty to ninety days without pay and repayment of the corresponding amount. Very serious violations would lead to dismissal and disqualification from public office for one to ten years. Where the facts could constitute embezzlement, misuse of public funds or unjustified enrichment, the case file would be referred to the Public Prosecutor’s Office.

The bill would repeal legal or regulatory provisions that conflict with the proposed law. It would require the Executive Branch to issue implementing regulations within three months of promulgation in the Official Gazette and would take effect on the day following that promulgation. Its provisions concern the named public bodies and could be relevant to the selective and collective transport, mobile phone, security, vehicle and medical services sectors.