€73 million worth of public contracts appealed in a year

An estimated 80% of the appeals tackled by the Public Contracts Review Board were found to be “frivolous”, according to the PCRB’s chairman Anthony Cassar.

During 2013, the autonomous body reviewed 135 cases – worth €73 million – leaving only 15 cases pending in 2014.

Flanked by Finance Minister Edward Scicluna, the board today published the 2013 annual report on its workings. This is the first time that case rulings are being published.

“135 cases worth €73 million were reviewed in a year, and 80% of the cases were frivolous,” Cassar said.

According to the board members – appointed in April 2013 – a substantial number of the appeals could be avoided if both bidders for the public contracts and their lawyers followed the tender requirements to the letter.

“Lack of proper adherence to the tender requirements result in a bid being lost, a decision which would then be confirmed on appeal,” Cassar explained.

30% of appeals lodged relate to contracts issued by the local councils. According to the PCRB, more education is needed among local councils to ensure that adherence to procurement regulations is respected. Bidders, the board added, must respect the requirements.

“The minimum fee for filing an appeal is €400 and many unsuccessful bidders take a chance and file an appeal. Because it’s cheap, they risk is,” he said, adding that lawyers should let their clients know when it is “useless” lodging an appeal.

The €400 minimum fee is for tenders that cost between €12,000 and €47,000.

Asked whether the minimum fee should increase to avoid “frivolous” appeals, Cassar said the proposals had been made to the Public Contracts Department. However, the board was informed that the EU was pushing for appeals to be free of charge.

The finance minister urged bidders to always pay attention to the tender conditions before making their bids.

“Why lose money on appeals that could be avoided?” Scicluna said.

He praised the PCRB for being a transparent body – and urged other departments and boards to follow the PCRB’s example and make their reports available to the public both online and in print publications.

Scicluna said the board was briefed to tackle the appeals’ backlog giving priority to projects that were EU-funded.