Ecuador lawmakers approve anti-corruption bill

Lawmakers in Ecuador passed a bill drawn up to help combat corruption.

They voted 107-18 in favor of the draft legislation, which prohibits public officials from having accounts, companies or assets in countries considered tax havens.

Under the bill, the national audit office is empowered to issue sanctions against public servants and the national assembly can remove the president or vice president from office if found to be in breach of regulations.

Public officials have until March next year to repatriate any capital or goods in tax havens, Marcela Aguiñaga, president of the assembly's justice and state structure committee, said in an assembly statement.

The bill, which now goes to President Lenín Moreno for approval or objection, was approved following a referendum - the first of its kind - held this year in which a majority of Ecuadorans supported the crackdown.

"We approved, via a historic vote, the #LeyParaísosFiscales, essential for the prevention of and fight against corruption," national assembly chairman José Serrano (pictured, front center) said in a tweet, citing the fact that the bill drew broad political support.

During a press conference, deputy director of internal revenue Manolo Rodas explained the connection between Ecuadoran tax policy and tax havens, state news agency Andes reported. He said a lack of transparency was behind tax systems that facilitate harmful practices.

"If money goes to tax havens, it is taxed less in the country where it was generated," he was quoted as saying. "There are 32mn people in America and the Caribbean that could escape from poverty in the absence of tax avoidance, and US$30bn has left Ecuador, since 1970, and gone to countries considered tax havens."

Last month the OECD issued a report on a review of country compliance with certain tax transparency standards. It said only one nation, Trinidad and Tobago, remained on this particular tax transparency black list.