Peru: New gradualness criterion and the redemption of a temporary disqualification sanction for MYPEs incorporated

In brief

On 23 December 2022, Supreme Decree No. 308-2022-EF ("Supreme Decree") was published. The Supreme Decree modifies the Regulation of Law No. 30225, State Contracting Law, approved by Supreme Decree No. 344-2018-EF ("RLCE"), regarding the sanctioning regime applicable to micro and small enterprises (MYPEs).


Contents

Below we summarize the new provisions of this standard: 

1. New criterion of gradualness of sanctions

It permanently incorporates paragraph h) to heading 264.1 of Article 264 of the RLCE, which establishes a criterion of gradualness sanctioning exclusively for MYPEs in cases where the infraction is the result of the affectation of production or supply activities due to the COVID-19 health crisis. An example of this is not being able to fulfill a contract and it being resolved by default due to the economic or operational impact of the health crisis. 

2. Possibility of redemption of temporary disqualifications imposed on MYPEs and their conversion into a fine

The Fourteenth Transitory Complementary Provision of the RLCE is incorporated, which establishes that MYPEs (or whoever takes their place at the time of the commission of the infraction) can redeem a temporary disqualification sanction imposed by the State Contracting Court by converting it into a fine, for which they must submit their application accompanied by a proof of being registered in the Registry of Micro and Small Enterprises (REMYPE).

The incorporated redemption allows MYPEs disqualified from contracting with the state to convert the sanction into a fine not less than five nor greater than 15 tax units, the payment of which rehabilitates them to contract with any public entity. 

To qualify for redemption, the applicant must meet the following conditions:

  • It has not been granted the redemption of the sanction previously.

  • The penalty to be redeemed is not a fine or a definitive disqualification.

  • The penalty of temporary disqualification is the first that has been imposed.

  • The sanction of temporary disqualification has been imposed during the state of national emergency as a result of COVID-19.

  • The infraction committed is the result of the affectation of production or supply activities due to the COVID-19 health crisis.

We consider that this modification implies recognition by the authority that the temporary disqualification sanctions have been applied disproportionately and unreasonably, given that they have affected companies whose infraction was not motivated by a malicious or culpable attitude, but due to the crisis generated by COVID-19. Precisely for this reason, a redemption of the sanction is incorporated to allow MYPEs to rejoin public procurement. It should be asked, why does this same treatment not extend to companies that are not MYPEs if they have also been irrationally temporarily sanctioned? 

We hope that the information has been useful for your company. Do not hesitate to contact us if you require advice on public procurement.

Spanish version.

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