The new Public Integrity Law has transformed state contracting in Ecuador

The Public Integrity Law, in effect since June 26, 2025, marked a deep change in the way state contracts are executed in Ecuador. Initially promoted by President Daniel Noboa, the proposal sought to reduce and simplify public procurement mechanisms, eliminating obsolete procedures such as quotations and minor amounts.

The original version from the Executive was widely modified in the Assembly, expanding from 17 to more than 150 pages. However, the core of the reform, the simplification of the procurement system, remained the central focus, aiming to address excessive bureaucracy and lack of efficiency in the National Public Procurement Service (Sercop).

With this law, the obligation for the Comptroller's Office to issue relevance reports before each contract was eliminated, a step that reduces red tape without weakening subsequent oversight. In addition, now only consulting services under USD 10,000 can be processed as minor amounts; the rest must be awarded through public tenders, increasing transparency.

Other notable changes include that all secondary regulations will be issued directly by the Executive, eliminating contradictory resolutions from Sercop. Likewise, the use of artificial intelligence and open data on digital platforms will be enhanced to ensure traceability, efficiency, and prevention of improper acts.

The law also requires that public officials involved in procurement processes be certified and trained. To strengthen ethics, suppliers who report documented corruption will have preference in future contracts, encouraging a culture of active transparency.

Additionally, a more modern vision was incorporated by including corporate purchasing mechanisms for medicines and strategic services. This will allow the country to improve access to critical supplies without incurring overpricing or delays, as has happened in previous administrations.

The new Public Integrity Law represents a concrete step in the modernization of the State, aligned with the efficiency and transparency objectives of President Daniel Noboa.The strengthening of public procurement and the elimination of bureaucratic obstacles are advances that consolidate a more responsible and proactive management, setting a clear distance from the ineffective models inherited from the past.