Chapter II, Section Three

LAW No. 19
(of June 11, 1997)

Chapter II - Administrative Organization,

Section Three - The Inspector General

Article 28. The Office of the Inspector General is charged with conducting and overseeing audits and investigations pertaining to the operation of the Panama Canal Authority.

The Inspector General shall promote economy, efficiency, and effectiveness in the administration, prevent and detect fraud and abuse of office, and recommend policies toward those ends.

Article 29. Following are the requirements to occupy the post of Inspector General:

  1. Be a Panamanian citizen.
  2. Hold a university degree and have no less than ten years of professional experience.
  3. Must not have been convicted of an offense with criminal intent or an offense against the Public Administration.
  4. Must not be related, at the time of appointment, to the Administrator or Deputy Administrator or members of the Board of Directors up to the fourth degree of consanguinity or second of affinity.
  5. Be at least 25 years of age.

Article 30. The Inspector General shall report solely to the Board of Directors, shall be under its general supervision, and shall not be under the supervision of any other official of the Authority.

Article 31. The Inspector General shall discharge the following duties:

  1. Develop policies for the steering, performance, oversight, and coordination of audits and investigations into the operation of the Canal.
  2. Review current and future laws, regulations, and procedures pertaining to the operation of the Authority, and make appropriate recommendations on the impact of such legislation or regulation on the economy and efficiency of the Authority or for the prevention of fraud, waste, or abuse, and other anomalies in the Authority.
  3. Conduct the investigations and audits that, in the judgment of the Inspector General, are necessary or advisable, and report to the Board of Directors the results and the corresponding corrective actions.
  4. Submit periodic reports to the Board of Directors on fraud, waste, abuse, or anomalies in the administration or finances of the Authority.
  5. Designate the staff needed to discharge his duties, in accordance with the selection procedures established by this Law and the corresponding Regulations.
  6. Take statements on matters under investigation with respect to fraud, waste, or abuse of authority, and anomalies in detriment of the Authority.
  7. Investigate cases brought to his attention concerning waste, abuse of authority, fraud, violations of the Law and Regulations, and actions that endanger the public health or safety. The Inspector General will not disclose the name of officials, workers in positions of trust, and workers or others, except that such disclosure is absolutely indispensable to clarify facts and follow due process.
  8. Require from workers, as well as from public and private organizations, such information, documents, reports, background, and other information and evidence necessary for the faithful discharge of his duties. In the case of contempt of the requirements made by this official, the appropriate authority must enforce them.

The Inspector General shall have access to all records, reports, audits, reviews, documents, recommendations, or any other Authority material relative to his responsibilities, and shall inform the Board of Directors when he is denied or is refused access to the information or assistance required for an investigation.

Article 32. The Inspector General is appointed and removed at the pleasure of the Board of Directors; consequently, he may be suspended or removed from his position.


Chapter III Patrimony, Finances, and Oversight, Section One: Patrimony and Budget