Bill 479.

Summary.

The bill amends Article 23 of the consolidated text of Law 22 of 2006, as ordered by Law 153 of 2020, concerning contractors’ duties and obligations. The amended article covers performance of the contract within the agreed term, cooperation with the procuring entity, compliance with instructions supported by the contractual relationship, good faith, and quality guarantees for works, goods, and services. It also addresses liability for artificially undervalued bids, concealed disqualifications or false information, access to contracted facilities, and obligations or claims arising during the contractual term.

The amendment requires every legal entity contracting with the State to submit, upon selection, a complete list of the natural persons who are its ultimate beneficial owners to the General Directorate of Public Procurement (Dirección General de Contrataciones Públicas). The Directorate must publish the list on its website, and the information will be publicly accessible. Contractors must promptly report changes in beneficial ownership. Corporations contracting with the State must have registered shares; the text also requires all shares of a legal entity contractor to be registered shares, at 100 %. No State entity may disburse public funds to a contractor that fails to comply with the disclosure obligation in item 10.

The amended Article 23 also provides for access to contracted facilities by authorized officials and persons appointed or engaged by the State for evaluation, oversight, or audit. It requires the provision of requested original documents, including accounting books when they directly affect the determination of payments. Noncompliance may lead, as applicable, to administrative termination of a concession contract or administrative takeover under the procedure established by Law 22 of 2006. National or foreign legal entities, trusts, private interest foundations, nongovernmental organizations, and charitable or nonprofit institutions whose ultimate beneficial owners cannot be identified through share ownership must have a notarized sworn declaration identifying them.

The bill also amends Article 41 of the same consolidated text. Legal entities taking part in contractor selection must issue all their share capital as registered shares and file a notarized sworn declaration with the General Directorate of Public Procurement identifying each natural person who directly or indirectly owns at least 10 % of the issued and outstanding share capital as an ultimate beneficial owner. The requirement extends to legal entity members of consortia or temporary associations. The declaration must be updated annually, and failure to file it bars participation as a bidder. False declarations may give rise to criminal and civil liability and related investigations. Unreported changes in share ownership, or changes that prevent identification of the ultimate beneficial owner, constitute grounds for breach. The final articles identify the amendments and provide for commencement upon publication in the Official Gazette. The bill concerns the General Directorate of Public Procurement, State contracting entities, and the contracting, concession, investment, trust, and nonprofit sectors.