New Public Ethics Regime in the City of Buenos Aires

On December 5, 2013 the Legislature of the City of Buenos Aires enacted Law No. 4,895, which was published in the Official Gazette on January 15, 2014 (the “Ethics Law”). The Ethics Law will enter in force 120 days from its publication and must be implemented within 120 days after entering in force.
The Ethics Law sets forth rules applicable to the exercise of public function in the Government of the City of Buenos Aires (“GCBA”) by civil servants and elected officials.
The Ethics Law rules on incompatibilities and conflicts of interest, a regime of gifts to public officials and provides for a system of annual sworn statements of assets.

1. Incompatibilities
The Ethics Law provides for a list of public officials subject to the regime of incompatibilities provided therein and a list of the causes that may produce an incompatibility situation.
Furthermore, the Ethics Law establishes a regime of inability to be part of regulatory agencies applicable to the public officials that have taken part in the planning and execution of the relevant privatizations or concessions.
Both the incompatibilities and the inabilities set forth in the Ethics Law are applicable up to one year after leaving office. 

2. Regime of gifts to public officials
As set forth in the Ethics Law, public officials of the GCBA must not receive gifts or other benefits on occasion or due to the performance of their public functions unless they are (a) protocol gifts received from governments or international organizations; (b) gifts destined for professional and academic training and perfection, provided by governments, international organizations or educational institutions; or (c) courtesy gifts granted on occasion of events on which it is usual to grant them.
Courtesy gifts, according to the literal text of the Ethics Law, shall not have a value “less” than 1,000 fixed units, which currently equals AR$ 5,000. We understand there has been a mistake in the text of the Ethics Law. Thus, when it states “less” it should read “more”.
Gifts/benefits shall be admissible as long as they may not be considered as a means intending to affect the public official’s will.
Regulation shall establish the mechanisms of registration of the gifts and determine in which cases they shall be incorporated to the patrimony of the City of Buenos Aires.

3. Annual sworn statement of assets
Public officials of the City of Buenos Aires will be required to file, as set forth in the Ethics Law, a sworn statement of assets when they enter into office, which will have to be updated on an annual basis, including goods, loans, debts and income, both foreign and domestic, of the public official, his/her spouse/husband or partner and their non-emancipated minor children.

4. Conclusion
The Ethics Law follows the trend of the Ethics Code and the Ethics Act that apply to public officials of the Federal Government, although it introduces novel rules whose actual enforcement should be analyzed.
For example, the Ethics Law contains a regulation in incompatibilities and inabilities as it provides that contracting companies or concessionaires shall be liable for the damages that may be caused to the GCBA due to any breach of the regime provided therein. 
Regarding gifts/benefits granted to public officials, it introduces a novel rule by setting a quantitative limit, which will enhance certainty in the application and construction of the rules of the Ethics Law regarding the matter.