Two-year period granted to complete municipal transition in El Salvador

April 30, 2024

The Legislative Assembly approved the Special Law for Municipal Transition and Restructuring, which establishes the obligation for outgoing officials and employees from May 1, 2024, to provide the necessary information to update the accounting of the 44 new municipalities. This legislation also grants a period of two years to carry out the transition process.

According to our partner, Oscar Giralt, the legislation allows municipalities with delays in delivering financial data to the General Directorate of Governmental Accounting (DGCG) of the Ministry of Finance, a maximum period of two years to regularize their accounting. Those officials who fail to comply with this task within said period could be dismissed and disqualified from public office for 10 years.

“The Ministry of Finance will supervise that outgoing employees provide all necessary information, and their non-compliance could be reported to the Attorney General’s Office. The law also allows municipal councils to redirect loan funds, modify their destination, and decide on the transfer of employees and officials according to their criteria”.

Among other provisions, the new regulations contemplate the possibility of transferring available funds from municipalities to new entities or retaining them in district accounts, as well as opening new accounts as determined by the municipal council. It is established that all municipal assets will remain valid until inventories are exhausted, after which the Ministry of Finance will provide new formats.

“The municipal council will determine the headquarters of the municipality where it will be established, using existing facilities. Likewise, councils will issue regulations related to municipal services such as civil registries, cadastres, lighting, among others, and users will request these services in the corresponding district or at the place of their registration,” Giralt adds.

Regarding family registration, delegation of this function is allowed for a maximum of two years, after which it will be assigned to a single official per municipality. In the case of cadastre, councils may appoint a responsible person per district, whose powers will last for two years, after which a single official will be designated per municipality.

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