Financial Crime World

Decentralized Levels of Government Dominated Public Contracting in Ecuador

In 2019, a staggering 37% of all public contracts in Ecuador were awarded to decentralized levels of government. This trend raises serious concerns about transparency, accountability, and integrity in public procurement.

Concerns and Recommendations

  • Experts are calling for comprehensive regulatory reforms to the National Public Procurement System to align with international standards and obligations.
  • Institutional strengthening through technological innovation, whistleblower support, and holistic public procurement policies is crucial to increase transparency and reduce corruption.
  • Building capacity for social control, preventing conflicts of interest, and combating corruption requires:
    • Online access to public information
    • Internal oversight mechanisms
    • Closer auditing by the Controller General

Public Service Careers Need Overhaul

A diagnostic analysis of Ecuador’s public service careers has revealed significant gaps:

  • Lack of knowledge about the number of employees in the public bureaucracy
  • Expert are advocating for reforms to appoint high-level officials through merit-based recruitment and promotion processes
  • Conflicts of interest in the public sector need to be addressed through:
    • Amendments to the Law of Sworn Asset Declarations
    • Organic Law on Prevention of Conflict of Interest

Fighting Corruption and Impunity

The fight against corruption and impunity is a critical priority for Ecuador:

  • Updates to regulations on transparency and access to public information are recommended
  • Reforms to regulatory bodies and public policies on:
    • Transparency
    • Judicial independence
    • Anti-corruption
    • Fighting impunity
  • Specific recommendations include:
    • Updating the Organic Law on Transparency and Access to Public Information (LOTAIP) to include standards from the Inter-American Model Law on Access to Information
    • Preventing conflicts of interest in the judiciary and law enforcement
    • Ensuring access to bank records in corruption investigations
    • Approving legislation on asset seizures

Diagnostic Report Highlights

The diagnostic report, conducted by FCD’s research team, analyzed documented information from various institutions, media websites, public institutions, and other reliable portals related to the subject. The report highlights the need for comprehensive reforms to address Ecuador’s transparency, accountability, and integrity challenges.

Full report available in Spanish at: https://padf.org/wp-content/uploads/2020/09/Informe-de-consultoria-con-portada.pdf