The Executive Branch extended the validity of Emergency Decree 003, which ensures the continuity of investment projects for the provision of public services in cases of companies undergoing investigations for corruption. Meanwhile, the bill that will replace the decree is being debated in Congress.

Given that the DU 003 was due to expire on February 13th and the possibility that the construction company Odebrecht could sell its assets abroad, the Minister of Economy and Finance, Claudia Cooper, and the Minister of Justice, Enrique Mendoza, announced the extension of the regulation.

On February 12th, during an extraordinary session, the Economy and Justice Committees began debating the Economic Reparation for Corruption Bill. This initiative was introduced by the Executive Branch on February 7th and is intended to replace DU 003.

At the meeting of the Committee, which was attended by government public officials to explain the scope of the regulations and answer questions from congress members, Minister Cooper said: “We need a law that is strong enough to give predictability to economic agents and be able to make decisions that allow them to guarantee the value chained payments and their investments”.

The legislative debate focused on four points:

Positive administrative silence: Congress members opposed to pass the article that establishes a period of 20 days for the Executive Branch to provide a response to any request for sales or transfers abroad. If there is no response in that period of time, it will be understood that the procedure has been approved.

Sales to third parties. Leg. Yohny Lescano (Acción Popular, opposition) considered the bill states that if a third party buys the stocks of a company that has confessed a crime or has been found guilty, the government will no longer be able to make withholdings. “That is to say, there will be many frontmen from now on,” he said.

Observers. Many legislators were against an article that promotes hiring observers of external private companies, who can ensure transparency in the processes of infrastructure projects of companies linked to the “Lava Jato” case.

Effective collaboration. Finally, Leg. Lescano objected to one of the key points of the bill. He considered that this initiative authorizes the Public Ministry to condemn the penalty or reduce the amount of civil compensation of the company regarded as an effective collaborator.