New Regulations for State Contract Transfers in the Dominican Republic
The Comptroller of the Dominican Republic has announced new regulations effective July 6, 2026, governing the transfers of state contracts for works, goods, and services. These measures, implemented through Circular IN-CGR-CIR-2026-0005, establish stringent registration, payment, and verification requirements aimed at enhancing transparency and accountability in public institutions.
Key Features of the New Regulations
One of the primary directives requires all assignments to be documented via an addendum to the original contract in the Structured Regular Procedure System (TRE Contract). This will help in identifying transferred amounts, outstanding balances, existing guarantees, and responsibilities of each party involved. Furthermore, all payment releases must now be conducted through the Integrated Financial Management System (Sigef), underlining the necessity for accurate and efficient financial tracking.
According to the Comptroller General Geraldo Espinosa, these guidelines aim to bolster traceability and financial management of contractual assignments, ensuring that all procedures adhere to Law No. 10-07 and recent amendments in Law No. 47-25 concerning public procurement.
Scope and Compliance Requirements
The regulations encompass a broad range of public entities, including ministries, general directors, and heads of decentralized and autonomous institutions, thereby holding all parties accountable under the new framework.
A significant aspect of these reforms is the introduction of a tripartite contract. This contract will outline joint liabilities among the contracting institution, the original beneficiary (transferor), and the transferee. This measure ensures that administrative gaps previously present in contract assignments are effectively addressed.
Verification Process and Guarantees
Prior to authorizing any transfer, the contracting entity must verify that the assignee meets the same technical, legal, and financial conditions as stipulated in the original contract. Additionally, it is required that the transferee is registered in the Sigef as a legitimate beneficiary.
Moreover, a technical report must be prepared detailing the financial and physical status of the contract. This document will ensure that the transfer complies with all legal stipulations. The regulations further stipulate that guarantees mandated by law must be assumed by the transferee in proportion to the amount transferred, safeguarding the interests of the public throughout the contract’s lifecycle.
Aims and Future Considerations
Espinosa emphasized that these new controls are designed to rectify existing deficiencies in public management and enhance transparency. By eliminating duplication in records and improving administrative processes, the regulations aim to foster accountability across all state contracts.
These reforms will come into effect for all transfers signed on or after July 6, 2026. Contracts formalized prior to this date will continue to follow the regulations that were in place at their signing. The Comptroller’s Office has made the circular widely accessible on its website to ensure compliance across public organizations.