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9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 A bsence of blacklisting of bidders for public tenders remains a ma- jor lacuna in the government procurement process. It is incomprehensible how only three economic operators were blacklisted in the last five years, a situation that has rightly raised the concern of the Cham- ber of Commerce, Enterprise and Indus- try. In its report on Public Procurement Reform published yesterday, the Cham- ber said enforcement of existing regula- tions must be strengthened. is leader has on multiple occasions harped on the importance of a level play- ing field for businesses and public pro- curement is one such area where this has to be practiced. Operators that breach the law must not be allowed to bid for public contracts. is country has learned a hard lesson over the past few years that impunity is not an option. Allowing companies in default to con- tinue participating in public tendering processes puts businesses that operate in a correct manner at a disadvantage. A big problem concerns legal breach- es linked to tax and social security pay- ments. According to the Chamber, 85% of its members told the organisation's work- ing group that worked on the report that economic operators who have not paid all of their tax and NI contributions should not be allowed to participate in tenders. e truth is that unpaid taxes already constitute grounds for blacklisting ac- cording to the law but the perception of the Chamber's members was that oper- ators in default on tax and social securi- ty payments still participated in tenders and are awarded public contracts. e problem is that this is not just a perception. Economic operators are managing to obtain compliance certifi- cates from public authorities after enter- ing into settlement agreements on pay- ment dues without effectively paying all tax dues. To top it all, this exception is allowed by law and is a direct transposition of EU directives. At the very least, however, the tax au- thorities must ensure that binding agree- ments are being adhered to scrupulous- ly and this information must be shared with the department of contracts. And in those cases where no such agreements exist, operators should be completely barred from participating in public procurement. e bigger issue remains one of good governance across all sectors of the public service. e public procurement process is an important cog in the work- ings of government because it deals with taxpayer money, and services and goods that are procured to benefit the public. Ensuring a robust and fair system must be everyone's endeavour. e govern- ment must sit down with stakeholders to discuss a way forward. ere are also numerous recommen- dations and observations made by the National Audit Office over the years on measures to improve public procure- ment. Within this context, direct orders must also be strictly regulated. While direct orders have value in instances that re- quire speed, the government cannot have a system of direct orders that can be easily abused. Fairness, oversight and transparent rules for all are the foundation blocks for a reform that befits a modern-day Euro- pean country. On a secondary note, the Chamber of Commerce must be commended for the raft of policy documents it has produced in which reforms and ideas are put on the national agenda. is pro-active ap- proach by stakeholders like the Chamber is added value to society, the economy and the country. Fairness, oversight and transparency in public procurement 21.01.2021

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