Preventing Corruption in Government Contracts: The Role of Third Parties

The “Anticorruption Code for the New Puerto Rico” has introduced significant changes to prevent corruption in government contracts by requiring third parties to be involved in the contracting process. This article outlines the key measures implemented to ensure transparency and ethical behavior.

Preventing Misuse of Confidential Information

According to Section 3.2 of the Code, contractors and suppliers must not use confidential information acquired through a government contract for purposes other than the contracted task or to obtain financial benefits for themselves or others. This provision aims to prevent the misuse of sensitive information obtained from the government.

Prohibitions on Confidential Information

• No person shall request or obtain confidential information from public servants in order to gain financial advantages.
• No person shall accept or maintain business relations with a public servant or their family members that could compromise the public official’s independent judgment.

Conflict of Interest Provisions

To prevent conflicts of interest, Section 3.4 of the Code states that no person shall enter into contracts with executive agencies if there is a conflict of interest. Contractors must certify that they do not represent private interests in cases involving conflicts of interest or public policy between government agencies and private entities.

Investigations and Enforcement

• Executive agencies are empowered to conduct investigations to determine whether contractors have acted in violation of the Code’s provisions.
• The agencies are authorized to investigate any suspected violations and take appropriate action, including terminating contracts.

Termination Clauses and Fines

• All contracts must include a termination clause if a contractor is convicted of an offense that renders them ineligible to enter into government contracts.
• Noncompliance with any provision of the Code may result in contract termination and fines or penalties, as specified in Section 3.7 of the Code.

Reporting Requirements

• Executive agencies are directed to notify the Secretary of Justice of all final orders or judgments issued for violations of the Code.
• Copies of these judgments must be provided to the Government Ethics Office when an employee of the Executive Branch is involved in the facts leading to the judgment.

In conclusion, the “Anticorruption Code for the New Puerto Rico” has implemented a range of measures to prevent corruption by ensuring that third parties involved in government contracts comply with ethical standards and do not engage in activities that compromise the integrity of the contracting process.