The Institutionality and Justice Foundation (Finjus) has sounded the alarm about the inefficiencies of Law 340-06 on Public Procurement, which has been in effect for 18 years. The organization argues that the law has proven incapable of effectively regulating, guiding, and ensuring transparency in the use of public resources for the central government’s objectives.
Finjus supports the proposed amendments to the Public Procurement Law currently being considered by the Chamber of Deputies. Public procurement, the organization emphasizes, offers several mechanisms to prevent corruption.
The law originally was passed with procedures for effective combatting of corruption, including global best practice clauses. Nevertheless, shortly after its passing, legislators approved amendments that weakened the application of the law as originally conceived. The ruling Modern Revolutionary Party (PRM) has the majority to restore the Procurement Law to its original state.
In a letter to the president of the special committee studying the bill, Deputy Fausto Domínguez, Finjus executive vice president Servio Tulio Castaños Guzmán highlighted the need for reform. Castaños pointed out that while Article 36 of Law 340-06 outlines the Procurement and Contracting Agency (DGCP) lacks the full autonomy necessary to effectively carry out these functions, remaining largely dependent on the Ministry of Hacienda (Finance).
The organization’s assessment of the law revealed several weaknesses and challenges, concluding that it has been a cornerstone of the clientelist model that has dominated Dominican politics. Finjus also noted that the law has allowed for numerous distortions and inconsistencies, exacerbated by the crisis in the justice system and the resulting impunity.
While acknowledging recent efforts to strengthen the public procurement system, Finjus has consistently advocated for comprehensive reforms to Law 340-06, addressing both procedural and substantive issues.
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Finjus
25 November 2024