Ecuador Cracks Down on Corruption: Public Officials Must Declare Conflicts of Interest

QUITO, ECUADOR - In a significant effort to combat corruption, Ecuador’s government has introduced strict laws governing the conduct of public officials and their dealings with taxpayers and contractors.

Conduct of Public Officials

Under the Public Procurement Law, public officials are prohibited from maintaining direct or indirect commercial links with individuals who have business dealings with them. This includes:

• Close relatives
• Corporate structures

Additionally, senior officials, including:

• The President
• Vice President
• Ministers
• Members of Congress
• Mayors
• Other authorities

are banned from entering into any public contract.

Judiciary branch officials are prohibited from:

• Practising law privately
• Holding second jobs in the private sector

Gifts and Hospitality Under Scrutiny

Public officials are strictly prohibited from:

• Requesting gifts, money, rewards, or privileges
• Accepting or receiving gifts if they exceed the monthly minimum wage
• Declaring and inventorying gifts if their value exceeds the minimum wage

Political contributions from private sector entities are limited to:

• Ecuadorian citizens
• Foreigners residing in the country

Private Commercial Bribery

Ecuador’s civil law protects against abusive relationships between private parties, including:

• Fiduciary or trust breaches
• Commercial civil collusion

Compensation may be awarded for damages, but only if the action is not considered a crime.

Penalties for Corruption

The absence of a statute of limitations means that bribery, embezzlement, extortion, and illicit enrichment by public officials can result in severe penalties:

• Prison sentences ranging from one to 13 years
• Prohibition from holding public office or serving as judges

Those convicted of corruption-related crimes are also prohibited from acting as public officials, running for public office, or serving as judges.

Foreign Bribery

While Ecuador has not enacted specific provisions governing foreign bribery, its Criminal Code establishes that crimes committed overseas may be subject to Ecuadorian law if they cause consequences in the country or affect international conventions.

The government’s efforts to combat corruption have sent a strong message: public officials must prioritize integrity and transparency in their dealings with taxpayers and contractors. Those who fail to comply will face severe penalties, as Ecuador seeks to rebuild trust in its institutions.