The Ministry of Finance has introduced a new rule imposing fines on bidders, suppliers, and contractors involved in state tenders, addressing offenses that were not previously covered by existing Finance Rules or the Finance Act. This new regulation marks an important step in ensuring greater transparency and accountability in government procurement processes.
The rule identifies 16 specific offenses, such as submitting false documents, withholding critical information, and attempting to obstruct other bidders. The Procurement Appeal Board has been tasked with investigating and acting against such violations, ensuring that the procurement process remains fair and competitive.
Offenders may now face fines of up to 2.5% of the total bid price, with penalties varying based on the severity of the offense. In addition to fines, offenders could face suspension from future bidding opportunities. The suspension period ranges from 3 months to 1 year for a first offense, 2 to 3 years for a second offense, and up to 5 years for any further violations. Additionally, if new offenses are committed within 3 years of a prior suspension, the suspension period may be extended.
The Ministry of Finance has emphasised that affected parties will be notified of the reasons for their fines or suspensions. These parties will then have 5 business days to respond and, if they wish, can request a retrial under the new regulations.
This rule is expected to play a significant role in curbing malpractices within the procurement process, ensuring that the bidding environment is equitable for all participants. By introducing clear consequences for violations, the government aims to uphold the integrity of its tendering system, safeguarding public funds and enhancing the quality of services procured.
The introduction of these penalties highlights the importance of accountability in public procurement, where transparency and fairness are crucial for fostering trust between the government and private sector participants. As a result, this new rule is seen as a vital step towards improving procurement practices in the Maldives.
