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Ecuador’s Stricter Measures to Combat Corruption: New Laws Prohibit Public Officials from Maintaining Commercial Ties

In a bid to combat corruption and promote transparency, Ecuador’s government has introduced a series of measures aimed at preventing public officials from maintaining direct or indirect commercial links with taxpayers or contractors.

Preventing Conflicts of Interest

According to the new laws, public officials who have dealings with these individuals as part of their duties are strictly prohibited from engaging in such activities. The Public Procurement Law has also been amended to prohibit contracting entities from bidding when a public official is involved in the process or has influence over it.

Gifts and Hospitality Restrictions

Public officials are no longer allowed to request, accept, or receive gifts, money, rewards, or privileges. The intention behind the gift is crucial in determining whether an official can face administrative sanctions or criminal charges for bribery.

• In cases where gifts are received from public authorities during official events in Ecuador or abroad, the value of the good must be declared and added to the inventory of the public institution to which the official belongs if it exceeds the monthly minimum wage.

Private Commercial Bribery

Ecuador’s civil law protects against abusive relationships between private parties, including fiduciary breaches, trust violations, and commercial collusion. These wrongdoings are subject to legal claims before civil courts, with potential damages awarded in cases where the action is not considered a crime.

Penalties for Corruption

The Ecuadorian government has introduced severe penalties for corruption-related crimes. The bribery of public officials, embezzlement, extortion, and illicit enrichment can result in prison sentences ranging from one to 13 years, depending on the severity of the offense.

• Those convicted of these crimes are banned from holding public office or running for political positions.
• Article 113 of the Constitution explicitly prohibits individuals convicted of bribery, illicit enrichment, or embezzlement from seeking public office.

Foreign Bribery

Ecuador has not enacted specific laws addressing foreign bribery, but the Criminal Code does establish that crimes committed overseas may be subject to Ecuadorian law in certain circumstances, including when the crime causes consequences in Ecuador or affects international conventions.