A man signs a large poster announcing the signing of a contract between SENAE, CNT, and Palantir Technologies Inc while another man stands watching on the right.
ECUADOR

President Noboa proposed an urgent reform to public procurement.

The measure aims to close loopholes for corruption in state processes and modernize the system

The public procurement system mobilized USD 8 billion in 2024, but between 10% and 30% of those resources are lost to corruption. For this reason, Daniel Noboa's government is promoting an urgent reform to simplify and digitize these processes.

Currently, the procedures are scattered and allow for bribes, overpricing, and favoritism. Noboa's proposal seeks to reduce the legal permissiveness inherited from previous administrations.

Stalin Andino, legal secretary of the Presidency, explained that redundant categories will be eliminated, reverse auctions will be prioritized, and oversight will be strengthened. Structural corruption in consulting, public works, and public goods will be addressed with transparency and efficiency.

The new framework will allow public entities to freely choose between the best price or the best service, without obsolete restrictions. This will entail a radical transformation of SERCOP and the associated IT systems.

Comparison between the current scheme and the government’s proposal for the contracting of works, goods, and services, showing the different amount ranges and contracting modalities in each case
Structural corruption | La Derecha Diario

From municipal works to medical acquisitions, all processes will be subject to digital control and cross-auditing. The socialist model encouraged rigged purchases and opaque systems that are now intended to be dismantled.

With this reform, Ecuador is taking a step toward a more honest, modern, and internationally aligned public administration. The initiative also includes sanctions for officials who violate ethical or budgetary standards.

Daniel Noboa has insisted that fighting structural corruption is a condition for reactivating the economy and restoring public trust. This measure, although technical, has a deep political impact.

The reform is an opportunity to break with a past of institutionalized impunity and to consolidate a functional state that serves everyone.

➡️ Ecuador

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