Government Procurement Reform: New Law and the Role of the Compliance Officer

The new Public Procurement Law replaces the old Public Administration Procurement and Contracting Law (LACAP), which had been enacted to regulate public procurement in accordance with the principles of transparency, probity and free competition. However, LACAP had weaknesses in oversight and control that allowed irregularities and corrupt practices to occur. In response to these challenges, the new law seeks to address these issues with a more robust legal framework. The inclusion of the OCCP is a key measure to ensure that procurement processes are more efficient and compliant with the law.

The Public Procurement Compliance Officer is an innovative figure under the new law. His role is to ensure that the procurement processes carried out by Public Procurement Units (PPUs) comply with legal and regulatory requirements. Unlike the Compliance Officer, who is responsible for the prevention of money laundering, the OCCP focuses exclusively on compliance in public procurement. This position is essential to prevent acts of corruption and to ensure that each stage of the procurement process is in compliance with established legal requirements.

The responsibilities of the OCCP in El Salvador are similar to those of similar figures in countries such as Chile and Colombia. Its functions include:

Process oversight: Verify compliance with applicable regulations at all stages of the procurement process.
Prevent irregularities: Implement internal controls to detect and prevent fraud and corruption.
Training and guidance: Train PCU personnel in ethics, integrity and compliance.
Internal Audits: Conduct periodic audits to ensure compliance and prepare institutions for external audits.
Reporting and Communication: Report any irregularities or non-compliance found and ensure that appropriate corrective action is taken.

The establishment of the OCCP aims to strengthen transparency and accountability in public procurement. By consolidating internal control, the OCCP acts as a guarantor to the public and the authorities, promoting integrity in the management of public resources. The OCCP is expected to significantly reduce the risk of corruption, improve the efficiency of procurement processes and ensure that public contracts are awarded and executed in accordance with the law.

The new Public Procurement Law and its regulations mark a significant advance in the management of public procurement in El Salvador. The figure of the Public Procurement Compliance Officer is fundamental to consolidating a more transparent, efficient and equitable procurement system. This article highlights the importance of this reform in the fight against corruption and in improving public management, and underscores the critical role of the OCCP in ensuring that state resources are used in an optimal and responsible manner.