Appeals on awarded tenders worth €57 million were processed by the Public Contracts Review Board last year.
The number of hearings adjudicated totalled 134, of which 102 were rejected and 32 were upheld. The PCRB closed the year with only six pending hearings, largely delayed because documents still need to be received.
Fourteen per cent of the appeals related to local councils, 22 per cent to the health sector and 9 per cent to the education sector, according to the PCRB annual report.
The 2014 annual report was presented today to Finance Minister Edward Scicluna by the chairman of the Public Contracts Review Board Anthony Cassar.
Prof Scicluna said the government spent €1.6 billion, one quarter of which passed through the Contracts Department.
“Appeals can be reduced if tender procedures are clearer, if people are available to address questions, among other things. This is another area where bureaucracy needs to be reduced,” Prof Scicluna said.
Dr Cassar said the tendering process will be simplified next year when a new EU directive on public procurement will come into force. New procedures will also make it easier for small to medium sized enterprises to apply for tenders, as the new rules are intended to increase competitiveness.
The new rules also require that all tenders above the value of €10,000 can be subject to appeals. The PCRB is therefore expecting an increase in appeals next year since the current threshold is €12,000.
Dr Cassar said training and a reorganisation of the department has already been done so last year’s rhythm can be maintained.
The finance minister also referred to the Commercial Sanctions Board that will commence functioning soon. It will have the power to blacklist companies that are not meeting the right standards from applying for government contracts.
The new board’s first task will be blacklisting those companies that insist on precarious employment practices. They will be blacklisted “for a year or two” or until they implement the necessary changes.
The board’s remit will be broadened in future.