By means of Law 2014, enacted on December 30^th of 2019, the Congress modified the ineligibilities regime applicable for public procurement processes, incorporating, among others, the following rules:

1. The ineligibilities for performing a public contract related to conducts against the Public Administration include: a) a court’s decision holding the contractor liable for crimes against the Public Administration, b) an administrative sanction against the contractor for corruption-related conducts, c) the suspension of the contractor’s legal personality, and d) the contractor’s directors receiving benefits for recognizing the commission of crimes against the Public Administration.

2. Ineligibilities related to conducts against the Public Administration will be permanent and shall be extended to the legal entities where the directors held liable for such conducts perform their duties.

3. Supervening ineligibilities related to corruption or to conducts against the Public Administration shall trigger the unilateral transfer of the contract by the procuring entity, without being the contractor entitled to damages. The Government will regulate the unilateral transfer within the following six (6) months.

4. Ineligibilities rules will apply to private procurements processes that involve governmental resources.

5. The penalty clause under the contract will be enforceable against the contractor in case a court holds the contractor criminally liable for corruption or conducts against the Public Administration.

The above rules will apply for public procurement processes that started after December 30^th of 2019.

Should you require additional information please do not hesitate to contact us.

Autor: Carlos Carvajal