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Monday, Mar 31, 2025

Controversial Public Contracting Bill Passed by Costa Rican Lawmakers

Controversial Public Contracting Bill Passed by Costa Rican Lawmakers

Legislators approve a bill criticized by the Comptroller General for potentially undermining public oversight.
On Thursday, 37 legislators in Costa Rica approved in the first debate a controversial bill that would allow public works contracts to be awarded without standard controls, as reported by the Comptroller General's Office.

The bill, known as file 24215, seeks to amend the General Law on Public Procurement, exempting not only contracts by the Costa Rican Red Cross but also 'cost-sharing agreements' with other states, international organizations, or subjects of international public law.

The vote saw overwhelming support from contractors, with only two dissenting votes cast by Diego Vargas and Eliécer Feinzaig from the Liberal Progressive Party (PLP).

The Comptroller General, Marta Acosta, has raised numerous concerns regarding the risks associated with exempting agreements involving international entities, citing past difficulties in auditing such contracts.

On February 25, Acosta warned that the implications of this bill could be even more detrimental than previous initiatives aimed at weakening public resource oversight mechanisms.

She stated, 'If this reform is approved, we would be opening a door to the direct selection of contractors without appropriate controls, undermining fundamental principles.' Acosta highlighted that the ability to award contracts without competitive processes and proper oversight could lead to opacity in the management of public funds.

Key principles at stake, as identified by the Comptroller General, include transparency, equality of conditions, accountability, and integrity.

Acosta also noted that discrepancies between the bill and the constitutional model pose a significant risk of unconstitutionality.

Feinzaig, who opposed the bill, cited the Comptroller’s warnings, particularly regarding the difficulties in obtaining information about the management of public funds from entities like the United Nations Office for Project Services (UNOPS).

Meanwhile, members of the Social Commission involved in processing the initiative, such as Priscilla Vindas from the Broad Front (FA) and independents Cynthia Córdoba and Gloria Navas, asserted that the Comptroller's concerns had been addressed in the draft.

However, Feinzaig indicated that a contact from the Comptroller’s Office communicated otherwise via text message.

The bill’s main proponent, Óscar Izquierdo from the Liberation Party, expressed a commitment to amend the bill post-first debate to address the identified issues and warnings from the oversight body.

The second debate on the proposal is scheduled for April 2.
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