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New requirements for tracking payments

Article 3 of Law No 136 of August 13 2010 (Law No 136), as supplemented by articles 6 and 7 of Law Decree No. 187 of November 12 2010 converted into Law No 217 of December 17 2010 (Law Decree No 187), introduced new provisions for tracking payments made under public contracts for works, supplies and services in order to prevent criminal infiltrations.

Bidders, subcontractors and beneficiaries of public funds or contributions involved in public works, supplies and services, must identify specific bank or post accounts, opened with banks or Poste italiane, on which all the payments (made and received) pertaining to public works, supplies and services will have to be received.

The details of such accounts, together with the personal data and tax code number of each individual authorised to operate on such accounts will have to be communicated to public contractors.

All financial movements (payments received and made) pertaining to public works, supplies and services must be made, under penalty of automatic termination of the relevant public contracts, exclusively through bank or post transfers or through other instruments of payment, which allow the monitoring of transactions pertaining to public works, supplies and services.

In addition, in order to track payments, all payments pertaining to public works, supplies and services made by public contractors and those to be made by the bidders pertaining to a public contract must contain the code which identifies each tender (CIG).

The code is issued by the Italian authority for the control of public contracts (Italian autorità di vigilanza sui contratti pubblici di lavori, servizi e furniture) for each public contract at the request of the relevant public contractor and must be indicated by public contractors in each call for bids or request to offer. CIG must also be indicated in the orders of payment to bidders.

In addition to CIG, the project code (CUP) must also be indicated in the case of new public investment projects financed by public funds.

Under penalty of nullity, public contractors must introduce in public contracts of works, supplies and services, a specific clause through which bidders undertake to fulfil obligations pertaining to the tracking of payments as provided by Law No 136.

Pursuant to Law Decree No 187, the new provisions introduced by Law No 136 and pertaining to the tracking of payments for public works, supplies and services apply to the public contracts executed after the entering of Law No 136 entered into force (September 7 2010).

All contracts executed prior to September 7 2010, if still under execution, must be integrated, under penalty of nullity, in order to comply with the new provisions introduced on the tracking of payments within 180 days from when Law No136 entered into force (7 March 2011) also through the attribution by the public contractor of the relevant codes.

The new provisions on tracking of payments also apply to tenders of works, services and supplies which are not subject to Legislative Decree No 163/2006 (Codice degli Appalti), including, inter alia, contracts pertaining to financial services such as issue, sale, purchase, transfer of titles or other financial instruments, including derivative transactions.

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