NATIONAL PUBLIC ADMINISTRATION

Decree 898/89

Please note that the provisions on incompatibility of Decree No. 8566/61 and any other rule on the matter are not applicable to certain officials.

Bs. As., 27/6/89

VISTO the "Regime on Cargo accumulation for NATIONAL PUBLIC ADMINISTRATION", approved by Decree No. 8566 of 22 September 1961, Law No. 22.140 establishing the "Basic Legal Regime of Public Function", which is reported by the General DIRECTION OF MILITARES FABRICATIONS, proposed by the Minister of Defence and,

CONSIDERING:

With regard to incompatibility, the regimes established by Decree No. 8566/61 and Act No. 22.140 cover the generality of cases, not contemplating particular situations that might arise, and thus there have been extensive interpretations of the rules governing the subject.

That in this regard the excessive breadth of article 2 of Decree No. 8566/61 implied that, by means of interpretation, certain incompatibilitys were instituted that the legal text did not expressly provide for, with respect to certain types of society that did not exist at the time of its issuance.

That the regime of incompatibility in the societies with State majority participation is governed by Law No. 19.550, Article 310, which expressly provides for the inapplicability of Article 264 of the same Law.

That the Societies of the State are governed by Law No. 20.705, which in its Article 2 establishes the application of the rules on Anonymous Societies in what is not the subject of reform by Law No. 20.705 and, in its Article 7°, refers to the regime of incompatibility provided for in Article 310 of Law No. 19.550.

That the Mixed Economic Societies are governed by Decree-Law No. 15.349/46 (Act No. 12.962), article 2 of which states that they shall be governed by public law or by private law, in accordance with its purpose, the provisions of the Trade Code are applicable, in accordance with its article 3.

That the Mixed Economic Societies are of state character.

That the directors and trustees of the above-mentioned societies are not, as such, public officials, so it does not mediate a ratio of paid public office or employment.

It should be noted that one of the objectives of the incompatibility regime is to avoid the conflict of individual interests in the face of the common one of NATIONAL PUBLIC ADMINISTRATION and, in the case of corporate entities with state participation, that conflict of interest does not occur.

That this kind of societies were created by the NATIONAL STATE ARGENTINO, not finding fully satisfactory organizational forms in public law.

It is not appropriate, for the purposes of proper regulation, to extend to such societies, with a specific and proper legal nature, the general regulatory norms of pure administrative bodies.

That the designations of the Directors and Trustees of these societies respond not only to the share that the NATIONAL ARGENTINE STATE has in them, but also to the best leadership of the interests of the sector, by allowing direct coordination of the state policy with the Superior Directorate of the Societies that it is used to execute it.

That article 28 of Act No. 22,140 does not meet the status of corporate entities with State participation, because, by their own legal regime, they are not controlled by the bodies mentioned in the Act.

That Act No. 19.550 was amended by Act No. 22,903, which introduced changes to article 264 but maintained the exception set by article 310 and, as a later and special one, deprives of Act No. 22,140.

That the interpretation from the control bodies, which act on public bodies and societies, is extremely controversial, given the lack of clearing standards, especially as it relates to the legal characteristics of the generically known public enterprises.

Accordingly, this clarification rule should be issued to avoid contradictory interpretations.

That under article 86, paragraph 1 of the National Constitution, the NATIONAL EXECUTIVE POWER is entitled to take the proposed decision.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 - Please note that the provisions on inconsistencies of Decree No. 8566 of 22 September 1961 and of any other rule in the matter are not applicable to the officials of the central NATIONAL PUBLIC ADMINISTRATION, special accounts services, decentralized or auto-archic agencies, State enterprises and any State entity under the NATIONAL EXECUTIVE PODER.

Art. 2o- Communicate, publish, give yourself to the NATIONAL DIRECTION OF THE OFFICIAL REGISTRATION and archvese.- ALFONSIN. José H. Jaunarena.