The State will no longer be obliged to contract the services of public companies

The State will no longer be obliged to contract the services of public companies

The Government repealed the Decree of Necessity and Urgency (DNU) of 2021 which established the obligation of ministries and state agencies to contract the services of public companies such as Nation Insurance, Banco Nation, use the services of YPF and Aerolíneas Argentinas. The measure was published this Wednesday August 21st by Official Gazette.

Public companies: which decree was repealed

He Decree 823which was still in force, specified that “the jurisdictions and entities included in article 8 of Law No. 24,156 on Financial Administration and Control Systems of the National Public Sector” should “implement the contracting of insurance policies that they require in the exercise of their management through NATION INSURANCE S.A. in all the branches in which that institution operates.”

The directive, dated December 2, 2021, bears the signature of the then Chief of Staff, Juan Manzurand who at that time was in charge of the Ministry of Economy, Martin Guzman.

According to the first article of the text published this morning, “decrees 1187/12, 1189/12 and 1191/12” are also repealed. The decision of Javier Milei’s administration is based on the fact that “through Decree No. 70/23, a public emergency was declared in economic, financial, fiscal and administrative matters, among others, until December 31, 2025 and a general program of deregulation of the economy through the elimination of state barriers and restrictions that impede its normal development.”

Public companies: changes in regulations

In this regard, they pointed out that “Article 50 of the aforementioned Decree No. 70/23 established that companies in which the National State is a shareholder They will not enjoy any prerogative of public law nor may they provide advantages in the contracting or purchase of goods and services, nor prioritize or grant benefits of any type, scope or character in any legal relationship in which it intervenes.”

Along these lines, the Government also eliminated with decree 1187/12 which determined the Obligation to implement the payment of salaries to the personnel of the Financial Administration and the National Public Sector Control Systems through the Banco Nación, as well as the regulations that imposed on public entities the duty to “contract with YPF the supply of fuel and lubricants for the fleet of official vehicles, vessels and aircraft.”

In the same way, the Executive overturned the decree 1191/12, which “established the obligation for the jurisdictions and entities of the National Public Sector to use the services of Aerolíneas Argentinas, Austral Líneas Aéreas and Líneas de Aéreas Cielos del Sur Sociedad Anónima and Optar Sociedad Anónima for the purchase of tickets required for air travelboth inside and outside the country, of its officials, employees or advisors hired under any modality, or of third parties whose transfers they financed.”

Federico Sturzenegger’s message after the end of Alberto Fernández’s DNU

The Minister of Deregulation and State Transformation, Federico Sturzenegger, He explained that “decree 747/24 signed today by President Javier Milei repeals decrees 1187/12, 1189/12, 1191/12 and 823/21, eliminating the privileges of Nación Seguros, YPF, Banco Nación and Optar in public contracts.”

Public companies must serve citizens and not be served by them. If these privileges in turn served to foster corruption or maintain a political caste, they must be banished,” he said.

“The disastrous Decree 853/23 that required people to buy insurance from Nación Seguros is repealed. The system was so grotesque that a “broker” was hired to obtain a contract that was required by law.”

“Decree 1191/12 required the purchase of tickets with the basic Camporista unit of Optar SA. Decree 1187/12 required public employees to collect their salaries at the Banco Nación, preventing income from the management of these accounts, which is a savings for the State, and Decree 1189/12, which required the State to purchase fuel from YPF without being able to compel cheaper prices.”

“All these decrees implied a transfer of taxpayer resources to these companies. That is over“, the official concluded.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts