Govt says criticism of procurement ‘unjustified’

The Gibraltar Government on Monday defended its record on procurement and the award of public contracts, rejecting criticism of “irregularities” set out in the Principal Auditor’s report for 2018/19 as “unjustified” and lacking wider context.

The audit report highlighted four contracts including one to provide and manage leisure activities in the Northern Defences; another in respect of digital health records; another for occupational health services; and another for a waste management facility.

Addressing the criticism, the Government said that between 2018 and 2025, it managed 270 public tenders, awarding 214 of them through “competitive and fair procedures”.

In the cases where tenders were not awarded, No.6 said this was typically due to a lack of compliant bids, changes in project scope, or strategic decisions not to proceed in the national interest.

It added the high volume of procurement activity reflected the Government’s “consistent use of transparent, rules-based processes” to deliver infrastructure, services and innovation for Gibraltar.

“It is a record that stands out for its efficiency, integrity and commitment to value for money,” No.6 said.

“In this period, only four contracts have been singled out for criticism by the Principal Auditor.”

“These represent a tiny fraction - less than 1.5% - of the total tenders managed by the Government.”

“We stand by the decisions taken in each of these cases.”

Each of the four contracts highlighted in the audit report followed either a valid ‘expression of interest’ process or was agreed under “exceptional” public interest circumstances.

It said the report’s criticism of these four contracts was “unjustified and lacking a practical appreciation of context”.

“Gibraltar’s procurement system is not only compliant, it is effective, modern and responsive,” No.6 said.

“The Government continues to issue tenders across all sectors, from health and infrastructure to IT, social services and the environment, and remains deeply committed to transparency and value for the taxpayer.”

The Government said public procurement frameworks must allow for flexibility in situations of national urgency, operational complexity or market failure.

It said the law permitted “legitimate alternatives” to open tender “where appropriate” including expressions of interest or negotiated procedures, adding these processes “are not shortcuts”.

These were “lawful, strategic tools” that enabled the Government to deliver results where standard procurement alone “would fall short”.

“Through Brexit, the pandemic, and a challenging global landscape, this Government has protected jobs, safeguarded services, and grown the economy,” Chief Minister Fabian Picardo said.

“This track record of results deserves public confidence.”

“Decisions taken outside the standard tender route always reflect careful judgements, expert advice, and a commitment to the best interests of the people of Gibraltar.”

Alongside the statement, the Government offered detailed explanations of the processes followed in each of the four contracts, which we will report on – together with the concerns set out in the audit report – in the coming days.