SANTO DOMINGO.- President Luis Abinader enacted Law 28-23, which regulates Public Trusts in the Dominican Republic, on the afternoon of Friday, March 17, 2023.
A press release from the Presidency explains that the new law stipulates that the establishment of public trusts will be subject to the approval of the Executive Branch by decree and must comply with article 128, paragraph 2, of the Constitution of the Republic in specific cases.
It will also ensure that public purchases and contracts within the framework of the public trust are governed by Law No. 340-06, on Public Purchases and Contracts, Works and Concessions, and its amendments, which will ensure "an effective and responsible management of public funds.".
Public contracts
Regarding access to information, the law establishes that all information contained in the trust agreement or other acts subject to public registration must be disclosed by the settlor through their respective Department or Office of Access to Public Information, in accordance with the Law of Free Access to Public Information.
“The supervision and regulation of public trusts will fall to the government entity participating in the trust, the Chamber of Accounts, the Superintendency of Banks and the Superintendency of the Securities Market, as appropriate, depending on the purpose of the trust,” the press document explains.
This oversight structure ensures transparency and accountability in the use of public resources.
Regarding the infractions
The regulation also addresses administrative sanctions, establishing a system for classifying infractions as very serious, serious, and minor.
The Superintendency of Banks will have the power to impose sanctions on trust companies, following the criteria established in Law 107-13 on the rights of persons in their relations with the administration and on Administrative Procedure.
"The enactment of this law marks a milestone in the history of the Dominican Republic and demonstrates the commitment to transparency, efficiency and accountability in the management of public resources," the Presidency stated in the press release.
