Modifications to the Law of Public Acquisition in Paraguay

With the enactment of the Law N° 6716/2021, it was modified and extended the Article 40 “Prohibitions and limitations to introduce proposals or to acquire,” of the Law N° 2051/2003 “Of Public Acquisition” extending the prohibitions and limitations to subscribe contracts with the Government to the physical people in whom in some way the entrepreneurial management, as long as the legal person had been sanctioned by the National Direction of Public Acquisitions (DNCP), this disposition covers the directors, managers, managing director, and all those in charge of the administration of the company.  Indistinctively, it affects the shareholders, Stockholders, and all those who in some way are proprietors of a legal person who had been sanctioned by the National Direction of Public Acquisition (DNCP).

In the same way, it is modified the scope of the previsions indicated in Art. 72 “Administrative Sanction,” establishing the exemptions of responsibility to the physical person in the characters before mentioned, indicating that:

“…  The shareholders, stockholders and proprietors of a legal person who have incurred in some of the assumptions provided in the items a, b and c of this article, shall not be always responsible, as long as:  neither voluntarily nor negligently they had consented; and had removed from their positions, to the directors, managers, managing partners, and all those who are in charge, in some way, the administration of the legal person, at least, during the time the incapacitation lasted; and have filed a judicial action against them, in this case.

The partners shall not be responsible if they do not have participation in the effective administration of the legal person, pursuant to the dispositions indicated in the Paraguayan Civil Code… ”

The cited legal disposition is in force for all the public tender processes reported to the DNCP on April 23, 2021, date of publication of the Law N° 6716/21 in the Official Gazette.  In agreement with this Law, the DNCP has issued the Circular Note No. 05/21 dated April 26, 2021, ADDRESSED TO THE OPERATING UNITS OF ACQUISITIONS (UOC), SUB OPERATING UNITS OF ACUISITIONS (SUB UOC), UNITS EXECUTORS OF PROJECTS (UEP) OF THE ORGANIZATIONS, GOVERMNET INSTITUTIONS, LIMITED LIABILITY COMPANIES IN WHICH THE GOVERNMENT IS A MAJORITY PARTERS, MUNICIPALITIES AND SUPPLIERS Of GOVERNMENT so that the same ones act in consequence during the planning of the respective calls for Public Tender.

For more information please contact

Dahiana Acosta


Martin Carlevaro