Officials who have any involvement in supplier companies must suspend their State Supplier Registration within 15 business days.
SANTO DOMINGO. – The General Directorate of Public Procurement (DGCP) announced the implementation of a new conflict of interest regime that significantly changes the rules for officials who have ties to companies that contract with the State.
The measure is contained in Article 38 of Law 47-25 and eliminates the previous limit that allowed an official to own up to 10% of the shares in a company that supplies the State without incurring disqualification.
With the new law, the regime becomes one of absolute incompatibility, which means that any level of shareholding, however minimal, in a company that sells goods or services to the State, constitutes a prohibition on contracting.
In other words: if a public official owns shares in a company that supplies the State, that company will not be able to contract with any public institution while that link exists.
15-day period to regularize
Through circular DGCP44-PNP-0001-2026, the institution granted a period of 15 business days for officials who are in this situation to request the suspension of their State Supplier Registry (RPE).
If they do not do so, the entity may suspend the registration ex officio, in accordance with the application regulations approved by Decree 52-26.
In a press release, the governing body informed that the suspension request must be made using the form provided for this purpose on the DGCP's institutional website, in the section legal framework/standard service forms/state providers/RPE cancellation or suspension form: https://www.dgcp.gob.do/sobre-nosotros/marco-legal/
The absolute disqualification applies to high-ranking state officials, including:
- The President and Vice President of the Republic
- Ministers and deputy ministers
- Legislators
- Judges of the Supreme Court of Justice and other courts
- Members of the Central Electoral Board and the Chamber of Accounts
- Mayors, councilors and municipal authorities
- Directors and deputy directors of public institutions
- Furthermore, the prohibition extends to companies where these officials have a shareholding or perform management or administrative functions.
Impact on the business and real estate sector
For the business sector, including el inmobiliario, where investor participation in different companies is common, the measure implies a careful review of corporate structures when there is a link with public officials.
The new system aims to eliminate any possibility of conflicts of interest and reinforces a “zero tolerance” approach to public procurement. The DGCP indicated that the deadline is intended to guarantee due process, allowing those affected to rectify their situation before any administrative measures are taken.
With this provision, the governing body reaffirms its intention to strengthen transparency and integrity in the National Public Procurement System.
Recommended readings:
