The government has amended the Public Finance Regulation to allow the awarding of all government contracts without a competitive bidding process, provided that approval is obtained from the cabinet or a cabinet committee.
The change, made on Sunday, expands the scope of single-source procurement, which permits state institutions to bypass open tenders and select a single supplier even when multiple vendors exist. Under the new amendment, Article 10.20 (b-1) of the regulation now allows government bodies to implement projects related to basic public needs, improvement of living standards, and security services through single-source procurement with cabinet approval.
Previously, such procurement was limited to exceptional circumstances, such as emergencies where time constraints made competitive bidding impractical, or in cases where multiple bids were unlikely due to the contract’s low value.
The amendment broadens the government’s discretion in awarding contracts, enabling major projects to be contracted without open bidding, as long as cabinet authorisation is granted.
Removing competitive bidding from the process poses a risk to transparency and accountability, as it limits public oversight of how government funds are spent. Without open tenders, contracts may be awarded without ensuring value for money, potentially leading to inefficiency, conflicts of interest, and reduced public trust in procurement decisions.
The move follows growing criticism over the government’s recent practice of awarding large-scale contracts to state-owned enterprises instead of private contractors, raising questions about fair competition and responsible use of public funds.
