The Presidency announced on 23 March 2017 new rules that are going into effect as of 1 April to control and make more transparent government procurement. These implement Decree 15-17 issued on 8 February 2017. The Presidency called this the most transcendent reform of government financial management of recent years.
During a press conference held yesterday at the Presidential Palace, the directors of Budget and Government Procurement, the National Controller and the National Treasurer provided details to the new government mechanisms.
The new measures are intended to eliminate discretionary powers of government officers to take on debt and to decide when this is paid, explained the Budget Agency (Digepres) director Luis Reyes. He said now government entities are required to request confirmation that an allotment of the funds has been made for the kind of contract. A certificate confirming the allotment is issued to authorize the contracting of the purchase. After the contract for the specific purchase is registered, this returns to the Digepres for programming the payments.
As part of the new measures, the full automating of the procurement, budget, treasury, public credit and internal controls will enable the interested parties to follow the government transaction online. This will also avoid arrears in payments to government suppliers.
Suppliers will be issued a certificate that states the government owes them the contracted sum. Online checks will be possible to ascertain the amount of certificates issued by a government institution, the total debt and the programming of the payments.
Yokasta Guzman, director of Government Procurement, said this will end the supplier uncertainties as to when they will be paid. She expressed her hope this will increase the number of women government suppliers. At present only 23% of government suppliers are women, and she hopes this can reach 50%. She said this new mechanism would consolidate government procurement as a tool to develop productive sectors.
Controller General Daniel Omar Caamaño warned that that the operations where a supplier does not fulfill the contract would be rejected.
National Treasurer Alberto Perdomo said that as part of the new measures, the Single Treasury Account has consolidated 258 government institutions. He said this has resulted in the closing of 3,529 government bank accounts so far, with savings of RD$200 billion for the state. Physical checks are no longer being written. 97% of National Treasury Payments are now by electronic transfer.
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Presidencia
24 March 2017
