2024-08-30 08:45:29
Following the Assembly’s warning, President Daniel Noboa reconsidered his second objection to the Reform Law of the IESS and Biess laws, and ordered its publication in the Official Register. The law had been the subject of controversy between the Executive and the Legislative due to previous presidential vetoes, which were considered illegitimate by the Assembly.
On July 21, in a communication addressed to Martha Jaqueline Vargas, director of the Official Registry, Noboa announced the sanction of the law that modifies the regulations of the Ecuadorian Social Security Institute (IESS) and the Bank of the Ecuadorian Social Security Institute (BIESS). This sanction represents the acceptance by the Executive of the law approved by the Assembly.
However, despite the publication, President Noboa expressed concerns about unconstitutionalities in the law. He noted that Article 7 could jeopardize the sustainability of public finances and that Article 9 contained a significant inaccuracy in the configuration of the quorum of the IESS Board of Directors, creating inconsistencies with other provisions of the same bill.
The conflict escalated when the government again vetoed the already vetoed law, which the legislature considered an unconstitutional act. The Assembly returned the law to the Presidency, and recently, Noboa decided to reconsider his position and allow its publication, although he anticipated that constitutional actions will be taken to address the discrepancies identified.
The reforms proposed in the law include a restructuring of the IESS Board of Directors and an expansion of the Biess board of directors. In addition, it establishes measures for the approval of the IESS budget, prohibits the Ministry of Finance from using its resources, and defines a payment plan for the state debt with the Institute, which should not exceed ten years.