2006News

Bridging decree effective in June

For years, society has been demanding more controls and accountability from government contracting and purchasing. Finally, a year and a half into government, President Fernandez has come forth with something, albeit it would seem quite watered out.

First, Decree No. 63-06 signed yesterday by President Leonel Fernandez will not come into effect until 1 June this year, 15 days after the congressional and municipal election, and does not apply to state institutions in charge of managing the government’s social plans. The bridging decree, as it has come to be known, seeks to make the contracting of goods and services by the state more transparent until Congress passes a bill with the same purpose.

Clave Digital reports that the decree excludes programs having to do with poverty relief, aid and protection for women, the disabled, children and youth from low-income families. Also exempt is the contracting of publicity and the contracting of literary, scientific or artistic works. If additional purchases must be made from the original supplier, the decree does not need to be applied if the new purchase is not more than 25% of the original contract.

Public works need not be contracted by public tender unless they cost more than US$6.72 million (RD$222.2 million). The same procedure will be used for the purchase of goods and services costing more than US$117,100. Works costing US$100,000 or less will be allocated by a draw, and purchases half that amount would be awarded by comparing prices.

El Caribe reports that according to the decree, the President, Vice President, Ministers, Deputy Ministers, lawmakers, judges, prosecutors, mayors, city council members, the Chief and Deputy Chief of Police and the Armed Forces cannot take part or be selected in any process of purchase or work contracting from the state. The measure also applies to their relatives, and would annul the contract if this should be discovered. Also, the public official involved would ipso facto be withdrawn from service.

Elena Brinemann, director of the United States Agency for International Development (USAID) urged Congress to pass the law that establishes these regulations in a definitive way. She said that the approval of this law is a pre-requisite for the implementation of the DR-CAFTA agreement.