2024-08-21 15:34:17
The Assembly issued a statement stating that the Executive violated Articles 139 and 147 of the Constitution by vetoing a law on the IESS and the BIESS that was already vetoed (objected), and announced that it “will return this unprecedented outrage to the constitutional norm.” It demands that the Executive sanction and to send the aforementioned project for publication in the Official Register without delay, “under the legal provisions of the case.” In response to the Assembly’s statement, the Government defended its decision to once again observe the law.
The National Assembly approved in second debate the draft Law Reforming the laws of the IESS and BIESS which was partially vetoed for unconstitutionality by President Daniel Noboa on April 12, 2024.
In a statement released by the Assembly today, July 19, 2024, it reported that on May 21, 2024, the Constitutional Court The legislature sent the opinion to the Assembly for its treatment within a period of 30 days. After this period had concluded, the Legislature sent the final text of the project to the Executive on June 21 for its approval and publication in the Official Record.
However, in an “absolutely unconstitutional” act, the Executive, recognizing in the text sent that it has the obligation to sanction for its publication, did not do so and sent a new objection to the project, says a statement released by Parliament.
For the Assembly, this flagrantly violates articles 139 and 147, paragraph 12 of the Constitution and also assumes functions for itself.
“In light of this violation of the Constitution, the Assembly will return this new unconstitutional objection to the Executive without further proceedings,” the statement said.
In the same document, the Assembly demands that the President of the Republic sanction and send the aforementioned project for publication in the Official Register without delay, “under the legal provisions of the case.”
Executive defends second partial veto of the law
In response to the Assembly’s statement, the Government released a document in which it defended its decision to partially veto the project again, and said that it identified that the new text corrected by the Assembly incurred an unconstitutionality in Article 7 “that cannot be ignored since it contravenes the Constitution and generates a risk to the sustainability of public finances.”
The Executive’s veto of the bill
On July 9, the Executive vetoed the bill to reform several laws for the Stability of Social Security in Ecuador, an initiative of the President of the Assembly Henry Kronfle.
This bill was approved on June 6, 2024 with 74 votes in favor and sought to ensure “the stability and efficiency of the administration of the Social Security System, through transparent management of affiliates’ funds.”
The project proposed that:
- BIESS may hire a national or international company with the capacity and specific experience in investment banking consulting focused on pension or social security systems.
- The advice included at least the analysis of risks, profitability, security, liquidity and diversification of the investments made by the Bank.
- Seed loans for entrepreneurs or small businesses to finance their initial or start-up activities under favorable conditions, with lower interest rates and longer repayment terms than traditional commercial loans.
- That BIESS make its investments transparent through the permanent publication of all the details of each of its investments and, if possible, with an indication of the rate of return, term, amount, level of return, risk analysis and beneficiary of the information.
The executive veto stated that “the publication of information on each and every investment contradicts the principle of confidentiality and secrecy regarding the assets of financial institutions, both public and private.”
Henry Kronfle considered this veto as an action “against the people” and “a blow to the pockets of citizens.” “The current administration wants to keep the money of IESS members and retirees as petty cash,” Kronfle posted on his social networks on July 10. (SC)