Panama Government Weighs Buying or Leasing Vehicles for State Fleet

Panama’s government is weighing whether to purchase vehicles for its state fleet or continue leasing them, following scrutiny from Comptroller General Anel Flores over how the vehicles are used and managed.

Foreign Minister Javier Martínez-Acha said his ministry would follow recommendations from the Comptroller General’s Office. “We strictly follow his suggestions. I prefer that he be the one to answer those questions. We comply with all the regulations that the comptroller seeks to uphold, since that is his job, and of course we support his initiatives,” he said.

Canal Affairs Minister José Ramón Icaza said the Ministry of Economy and Finance is reviewing which option would serve the state better. Preliminary indications suggest the ministry may again favor leasing, he said, because the comparison should not focus only on a vehicle’s monthly cost.

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We strictly follow his suggestions. I prefer that he be the one to answer those questions. We comply with all the regulations that the comptroller seeks to uphold, since that is his job, and of course we support his initiatives.

Icaza said a full assessment must include financing, maintenance, depreciation and other expenses linked to buying and operating the vehicles. “When you conduct a complete assessment of what you pay in that monthly amount, it does not refer only and exclusively to the cost of the equipment,” he said.

Audits related to the issue are under way as the ministry compares the costs and benefits of both arrangements. The decision remains pending the results of the analysis and audits, which are intended to determine whether buying the vehicles or maintaining lease contracts would be more efficient for public finances.

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When you conduct a complete assessment of what you pay in that monthly amount, it does not refer only and exclusively to the cost of the equipment.