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The GSD has called on the Gibraltar government to clarify its intentions regarding recent amendments to procurement rules, specifically questioning whether the changes are designed to facilitate the awarding of concession contracts without a public tender process. The regulations, which came into effect on October 15, allow for the negotiation of concession contracts with selected operators without the prior publication of a concession notice under specific circumstances. These include instances where an initial tender process failed to attract suitable bids, cases where only one operator is capable of providing the service, or situations involving extreme urgency due to unforeseeable events. Additionally, the rules permit the use of this procedure if a minister deems it necessary and proportionate to protect public safety, health, or intellectual property. When applying these criteria, ministers may consider potential risks to critical infrastructure, employment, and Gibraltar’s economic stability. For infrastructure projects involving capital investment of at least £5 million, the amendments allow for additional factors—such as strategic value and construction complexity—to be considered when determining the maximum duration of a contract. Under the new rules, government bodies utilizing these procedures must maintain a written report justifying their decisions and ensuring equal treatment, and they are required to submit a formal concession award notice. Keith Azopardi, Leader of the Opposition, urged the government to be transparent about its objectives. "The GSLP Government needs to be clear with people as to what is intended here because the rules are one thing but its application is another and people are entitled to know what concession in particular is being considered and who the Government are intending to benefit," Azopardi said. The GSD noted that these changes follow previous amendments made in November 2025, which were introduced after the Principal Auditor criticized the government’s procurement practices. The auditor had previously raised concerns regarding contracts awarded to entities connected to government ministers or the ruling party, warning that a lack of competitive tendering could foster a "perception of favouritism or corruption." The auditor also highlighted instances where ministers bypassed the Procurement Office. At the time of the auditor's report, the government rejected allegations of irregularities, describing them as "unjustified." The government maintained that between 2018 and 2025, it managed 270 public tenders, with 214 awarded through competitive procedures. It argued that non-tendered contracts were the result of "lawful, strategic tools" used when standard procurement was insufficient, citing factors such as a lack of compliant bids or the national interest. The GSD remains critical of the government’s approach, pointing to the government’s previous parliamentary response to the auditor’s findings. The Opposition stated that the government is now extending the principle of non-tendered contracts to concessions and reiterated its demand for an explanation regarding which specific contracts are being targeted by these new regulations. Article source: Gibraltar Chronicle | Image credit: Gibraltar Chronicle
The GSD has called on the Gibraltar government to clarify its intentions regarding recent amendments to procurement rules, specifically questioning whether the changes are designed to facilitate the awarding of concession contracts without a public tender process. The regulations, which came into effect on October 15, allow for the negotiation of concession contracts with selected operators without the prior publication of a concession notice under specific circumstances. These include instances where an initial tender process failed to attract suitable bids, cases where only one operator is capable of providing the service, or situations involving extreme urgency due to unforeseeable events. Additionally, the rules permit the use of this procedure if a minister deems it necessary and proportionate to protect public safety, health, or intellectual property. When applying these criteria, ministers may consider potential risks to critical infrastructure, employment, and Gibraltar’s economic stability. For infrastructure projects involving capital investment of at least £5 million, the amendments allow for additional factors—such as strategic value and construction complexity—to be considered when determining the maximum duration of a contract. Under the new rules, government bodies utilizing these procedures must maintain a written report justifying their decisions and ensuring equal treatment, and they are required to submit a formal concession award notice. Keith Azopardi, Leader of the Opposition, urged the government to be transparent about its objectives. “The GSLP Government needs to be clear with people as to what is intended here because the rules are one thing but its application is another and people are entitled to know what concession in particular is being considered and who the Government are intending to benefit,” Azopardi said. The GSD noted that these changes follow previous amendments made in November 2025, which were introduced after the Principal Auditor criticized the government’s procurement practices. The auditor had previously raised concerns regarding contracts awarded to entities connected to government ministers or the ruling party, warning that a lack of competitive tendering could foster a “perception of favouritism or corruption.” The auditor also highlighted instances where ministers bypassed the Procurement Office. At the time of the auditor’s report, the government rejected allegations of irregularities, describing them as “unjustified.” The government maintained that between 2018 and 2025, it managed 270 public tenders, with 214 awarded through competitive procedures. It argued that non-tendered contracts were the result of “lawful, strategic tools” used when standard procurement was insufficient, citing factors such as a lack of compliant bids or the national interest. The GSD remains critical of the government’s approach, pointing to the government’s previous parliamentary response to the auditor’s findings. The Opposition stated that the government is now extending the principle of non-tendered contracts to concessions and reiterated its demand for an explanation regarding which specific contracts are being targeted by these new regulations.
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