Sir, – Ireland needs a Tenders Act. I believe that there is a type of corruption about that is not all about brown envelopes. There is a cosy system that helps people in the know. €19 billion is being spent by public authorities annually and there is very little adherence to European laws or national government guidelines. It is unfair on those who tender and we are not getting value for money.
Billions worth of public contracts are not advertised. There is a great effort to circumvent the EU laws. Public service and public supply contracts, for example, with a value greater than €193,000 are being called public works contracts so they do not have to be advertised in OJEU across the EU unless the contract value is over €4.8 million. As a result, EU time limits and other rules do not apply.
There is the failure to use simple procedures, the failure to properly describe what is being purchased in the contract notice, the failure to be open as to how tenders are marked; and unnecessary demands are put on tenderers, such as high turnover requirement or too much paperwork. Worst of all is the failure to advertise the tender for a long time period prior to tender date. This is often done when someone in the know is lined up for the contract.
I estimate that 95 out of 100 contracts are not done fairly or properly and this leaves room for corruption.
Standards need to be set and enforced. In Denmark where there is a Tenders Act, the Danish Complaints Board for Public Procurement has emphasised the deterrent effect of damages. It is not with tongue in cheek that I say tenderers need a compensation culture in public procurement contracts to clean up the act and punish wrongdoing. – Yours, etc,