Contractors demand immediate payment after enactment of Law 16-26 and warn of possible bureaucratic duplication

Santo Domingo.– Regarding the recent enactment of Law 16-26, which seeks to regularize and settle historical debts with contractors of the State, jurists representing a group of suppliers made an urgent call to the Government to proceed with the immediate payment of commitments that, according to them, already have final judgments. Lawyers Luis Ricardo and Erick Morrobel pointed out that, although the new legislation represents progress in resolving accumulated administrative liabilities from previous administrations, the Dominican State maintains an unjustified delay in relation to judicial rulings that have acquired the authority of res judicata. They indicated that subjecting firm judicial decisions to new review or audit processes by the Special Commission of the Ministry of Finance could constitute a violation of the principle of separation of powers established in the Constitution, understanding that these obligations do not require additional validations, but rather their execution through the allocation of funds.

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They also warned about what they call a "tax paradox," pointing out that the General Directorate of Internal Taxes (DGII) requires updated tax certifications from contractors who, in turn, cannot meet those obligations due to the lack of payment by the State itself. In that regard, they requested the intervention of the Executive Branch to evaluate the possibility of mechanisms for compensating tax debts or the issuance of special waivers for affected creditors. Jurists also proposed the creation of a working group between congressmen and authorities in the financial area, with the aim of establishing administrative solutions that avoid the constant judicialization of these cases and allow for the streamlining of payment processes. They also suggested that this mechanism could help decongest the Superior Administrative Tribunal (TSA) and reduce the burden of litigation against institutions such as the Ministry of Public Works, the Ministry of Housing and Buildings (MIVHED), among other contracting entities. Finally, the legal representatives stated that behind the amounts owed, there are economic and social impacts that affect hundreds of families, so they reiterated their willingness to dialogue with the authorities to define a roadmap that guarantees the fulfillment of the State's obligations and the stability of the public contracting system.