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Mechanisms relating to public procurement are varied in order to increase transparency in the selection process and to avoid the "revolving door" through which senior officials and decision-making personnel within the government leave their offices and private companies hire them in order to influence public decisions and contracts.

The new law also strengthens the duties of state-appointed auditors in the supervision and control of state contracts. It also increased the grounds for inability to act in public procurement contracts.

Given that corruption in the private sector is also rampant, the Anti-corruption Statute created new tools that allow the imposition of sanctions to directors, partners, managers, employees and contractors who carry out corrupt practices within private businesses and organizations.

Some of the practices sanctioned under the Statute are private corruption, unfair management and misuse of privileged information. The novelty of the Statute is that these measures, which had traditionally been attacked within the framework of commercial laws, are now placed within the criminal punitive regime.

Given the criminal implications of the Statute, private business entities must now make sure that new rules, policies and practices are introduced within their organizations in order to take the necessary measures for their administrators, shareholders and contractors to avoid falling within the practices sanctioned under the new law.

Last Updated on Thursday, 02 February 2012 16:12
 
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Legal Newsletter with issues related to our practice areas.



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