Based on criteria such as solidarity and income redistribution, Law 142 of 1994 classifies subsidies as public social spending.
Decree 1077 of 2015 determined the methodology for the distribution of the "balance" between subsidies and contributions of public household services of water, sewage and sanitation. Thus, it establishes the calculation that the entities providing public services must apply regarding the value of the subsidies and solidarity contributions.
Therefore, it is the duty of these companies to sign contracts with the Municipality to ensure the transfer of resources for the payment of subsidies. This aims to guarantee an efficient use of the resources and their effective payment.
In the event of inconsistencies with the deployment of these subsidies and their payment, the President and governors have the power to suspend negligent mayors.
For the aforementioned reasons, the Ministry of Housing, City and Territory reminded the municipalities that they cannot excuse themselves for the non-existence of these contracts in order to not comply with their obligations, since the subsidies are public resources constitutionally designed to be allocated to people with lower incomes. Moreover, the destination of these subsidies is specific, even though no contract has been signed in this regard and for this reason their use is justified.
It should be noted that the Ministry of Housing, City and Territory is the entity responsible for carrying out the direct transfer of subsidies and that therefore the requests for these transfers must be submitted by the legal representatives of the territorial entities through the formats established on the website of the Ministry or detailed by Circular 2020EE0022183 of March 27, 2020. All cases are subject to monitoring, and control of the administration and execution of the resources.
However, in the framework of the declaration of economic, social and ecological emergency, the procedure that the people who provide public services of water, sewage and sanitation must follow in order to have access to the direct payment with SGP-APSB resources is the following:
- The persons providing the services must fill out the request for a direct payment according to Annex 1 of Circular Letter 25766 of 2020. This request must be signed by the legal representative.
- The corresponding payments will be those projected until December 2020 or in the absence of this value, the projected value will be presented in the balance sheet of the municipality for the term 2020.
- These applications must be submitted to the Ministry of Housing, City and Territory and have a deadline of the 18th of each month.
- The legal representative must submit the certification stating the amount of debt for subsidies until April 15, 2020. The amount not paid by the municipality must also be expressly stated.
- A copy of the invoices presented to the Municipality for the 2020 period.
- Copy of the citizenship card of the legal representative.
- Copy of the certificate of existence and legal representation.
- Copy of the RUPS.
- Bank certification stating the account holder, identification, number, type of account and that it is active to date.
- Copy of the agreement signed between the Municipality and who is providing the service. In case of not having this agreement, the projection of the balance presented to the municipality must be presented before July 15, 2019.
- Copy of the Municipal Agreement that sets the percentages of subsidies and contributions in force.
- Copy of the 2020 budget.
- Submit monthly or bimonthly billing for the municipality until the end of 2020. This must be accompanied by the supports required by current regulations.
Once the Ministry receives the request, it will review the documentation and, if necessary, may ask the provider for any clarifications it deems appropriate. It may also return the application if it identifies that the resources are not sufficient to cover the amount requested. Should this be the case, the lender must adjust its request and coordinate with the territorial agency the additional sources to cover the remaining amount or agree on the difference not covered with the territorial entity.
The Municipality or District will assume the following activities:
- Verification of the correct allocation of resources.
- It is bound to make the payments.
- Send, within 10 days after the payment, the copy of the request and the balance between subsidies and contributions.
- In case of inconsistencies with the payment requested by the provider, the latter may request the modification or adjustment to the request based on the contract or agreement signed.
- Allocate the resources in the budget for the payment of the subsidies for which there are no funds.
- Register the payments in the FSRI.
- In the case of unpaid amounts, payment agreements may be arranged with the lender.
Finally, it should be noted that if no document has been signed, the lender and municipality will have a maximum of 30 calendar days to execute it.