The new public contracts review board has made efficiency its priority and since taking office last June has already more than doubled the number of hearings from 48 to 88.

Finance Minister Edward Scicluna, visiting the board’s offices yesterday, said the European Commission had identified the Maltese contract review process as the longest in the EU.

“The government found a backlog when it took office in March,” Prof. Scicluna said, explaining that, over the last six months, the appeal process was shortened to six weeks from three months with administrative costs going down from €1,600 to €700.

“There needs to be more transparency so we have fewer appeals,” he said.

Preference will be given to projects backed by funds that would otherwise be irrevocably lost

The “simplification” of the whole process included the scrapping of the first-in-first-out system. “Preference will be given to projects backed by funds that would otherwise be irrevocably lost,” he said. A new fast track system will give preference to EU-funded projects, health and education public contract reviews in an attempt not to lose any EU funds, the minister explained.

Prof. Scicluna said there would be an increase in training at ministries and local councils so there would not be so many appeals when public calls for contracts were made. “A lengthy process can have an adverse effect on business, particularly small SMEs.”

Board chairman Anthony Cassar said the largest number of appeals came from local councils, either “due to lack of knowledge” or “because they don’t seek advice”. More than 80 per cent of the appeals were trivial, he pointed out.

By way of example, Dr Cassar referred to a 2011 appeal on a public contract for surgical gloves. The appeal meant the tendering process had stopped for two and a half years forcing the procurement section of the hospital to go to “a much more expensive” third party. “This is costing the taxpayer money,” he said.