Carlos Pimentel, director of the Public Procurement Agency ((DGCP), announced the going into effect of the amendments made to government procurement. As of Wednesday, 28 January 2026, the Dominican Republic will have officially enacted Law 47-25 on Public Procurement, described by the government as a landmark piece of legislation designed to overhaul the state’s purchasing systems and install rigorous safeguards against corruption.
The new law replaces the nearly two-decade-old Law 340-06, marking a significant shift toward transparency and institutional accountability.
The government promises strengthened oversight and controls. A central pillar of the new regulation is the expansion of its jurisdiction. Unlike previous rules that primarily focused on the central government, Law 47-25 now extends its reach to:
• The legislative and judicial branches in their administrative functions.
• Public trusts and state-owned enterprises where the government holds more than a 50% stake.
• Decentralized and autonomous agencies.
To curb the misuse of public funds, the law mandates the use of the Electronic System for Public Procurement (SECP), ensuring every phase of a contract is traceable, auditable, and viewable in real-time. The Public Procurement Agency (DGCP) will now deploy specialized compliance officers to monitor high-stakes transactions.
New penalties and criminal liability
The legislation introduces a comprehensive sanctioning regime aimed at both individuals and corporations:
• Prison sentences: Individuals found guilty of bribery or collusion face between two and ten years in prison.
• Corporate liability: For the first time, legal entities (companies) can be held criminally liable for corruption committed by their representatives. Sanctions include massive fines (up to 5,000 minimum wages) and the permanent closure of the business.
• Emergency restrictions: To prevent the “emergency” loophole often used to bypass bidding processes, any non-competitive contracting for national security or disasters now requires an explicit presidential decree.
Economic and social impact
Beyond anti-corruption measures, Law 47-25 is being used as a tool for economic development. The mandatory quota for contracts awarded to Micro, Small, and Medium Enterprises (MSMEs) has been increased from 20% to 30%. Notably, at least 10% of these contracts must be specifically allocated to businesses led by women.
The law’s entry into force follows a 180-day transition period after its enactment in July 2025. It arrives at a time when the Dominican Republic has been working closely with international bodies, such as the UN and the US government, to align its procurement practices with global ethics standards.
The enhanced measures to prevent corruption in government comes at a time the media has been covering numerous corruption scandals that had been going on for years without government attention.
Authorities expect the new framework to reduce the “red flags” of collusion and price-fixing that have historically plagued public works and supply chains in the country.
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El Dia
28 January 2026