The government has decided to reform the payment systems of universities and prohibit direct hiring. After a period of calm, the government of Javier Milei resumed one of the major political battles of 2024: the debate over the audit of university expenses, particularly those of the University of Buenos Aires (UBA). Three ministries drafted a set of decrees aiming to reform the current economic and financial management system of these institutions and prohibit the signing of agreements and direct contracts without bidding or price comparison. The normative package involves four decrees, three published today and one upcoming, which modify the regulatory framework for purchases, contracts, and budget management in public universities. These reforms require the mandatory adoption of national electronic systems such as COMPR.AR, CONTRAT.AR, and the Integrated Financial Information System on the Internet (e-SIDIF). Additionally, the restriction of “interadministrative agreements” with public entities or cooperatives, which were not subject to national state controls, has been addressed. This point is crucial because investigations by the Office of the General Auditor of the Nation (SIGEN), in dispute with UBA in the courts, revealed around 2,400 million-dollar agreements with various irregularities. The government has left room for negotiation, as the decrees do not set deadlines or implementation dates. Javier Milei stated that the changes do not affect the autonomy of universities, which is recognized by the Constitution and the law. The new regulations aim to incorporate these institutions into the transparency requirements that apply to all public bodies.
By Decree, the Government Mandates Universities to Overhaul Spending Reporting and Invoicing, and Prohibits Direct Contracts
The government has issued a decree ordering universities to reform their spending reports and invoicing systems, and prohibiting direct contracts. This measure aims to enhance transparency, prevent corruption, and ensure efficient use of public funds.
Previously, universities had considerable leeway in managing their finances, often leading to opacity and questionable practices. The new decree seeks to address these issues by implementing stricter controls and standards.
Reforming Spending Reports and Invoicing
Under the decree, universities must adopt a centralized system for tracking spending. This system will ensure that all expenses are accurately recorded and can be traced back to their source. The reform also mandates that universities issue invoices that comply with established standards, facilitating verification and audit processes.
Prohibition of Direct Contracts
The decree also prohibits universities from entering into direct contracts with vendors or service providers. Instead, they must utilize public procurement mechanisms, which are designed to ensure fairness, transparency, and competition. This change will help prevent sweetheart deals and favoritism, thereby promoting accountability and efficiency.
Impact and Implementation
While these reforms may impose additional administrative burdens on universities, they are expected to bring significant long-term benefits. By increasing transparency and preventing fraud, the reforms should boost public trust in higher education institutions. Moreover, the use of competitive bidding for contracts could lead to substantial cost savings.
The implementation of these changes will be overseen by a newly created inter-ministerial committee, which will provide guidance and monitor progress. Universities will have a transition period to adapt to the new requirements and ensure full compliance.