Legislative Assembly pushes transparency in Public Procurement Law

The Legislative Assembly (AL) yesterday detailed the passage of the Public Procurement Law, aimed at enhancing fairness, transparency, and procurement procedures, while also establishing a public procurement website and an official registration database.

However, during the legislative debates, some legislators expressed concerns that fully waiving the requirement to publish procurement information after the fact compromises the principles of openness and fair competition.

The First Standing Committee of the Legislative Assembly convened earlier this month to finalize discussions on the draft Public Procurement Law, subsequently signing a statement of opinions.

Compared to the original draft, the bill replaces existing legal procedures for procuring goods and services, which have been in place for over 30 years, and introduces significant improvements. Both the structure and content of the bill have been substantially revised, resulting in clearer provisions, with the number of articles increasing from 109 in the original draft to 152.

The new content includes a dedicated chapter on procurement procedures, which outlines the specific steps and requirements for various types of procurement. This addition aims to enhance the structural rationality and completeness of the bill’s content.

The new law introduces additional administrative penalties for anti-competitive conduct, with fines ranging from 5% to 10% of the estimated value of the procurement contract, aimed at enhancing the law’s deterrent effect. A public procurement website will be established, mandating the disclosure of information such as notices, bidding rules, and evaluation results to improve transparency in public procurement.

The bill explicitly designates the Financial Services Bureau (DSF) as responsible for establishing a supplier database, ensuring that the information is open and accurate, thereby promoting fair competition.

Another significant amendment is the specific regulation of competitive negotiation and consultation procedures, which seek to enhance their fairness and transparency, ensuring equal opportunities for all participants.

At yesterday’s detailed review meeting, lawmaker Ron Lam underscored the principle of openness and transparency.

He acknowledged that the government had revised the wording of the bill to exempt certain parts from legal application, viewing this as a positive step forward. However, he pointed out that the text does not clearly articulate a commitment to transparency.

He emphasized that the government should disclose information after decision-making, unless confidentiality is warranted, highlighting the critical role of such disclosure in ensuring effective oversight.

“What I want to emphasize is that, except in cases involving confidentiality and national security, this information should be made public. Post-disclosure is an effective means of oversight,” he said.

In response, the Secretary for Economy and Finance, Anton Tai, clarified that the Public Procurement Law primarily regulates government public entities.

He noted that public capital enterprises are already governed by relevant regulatory agencies and operate under a market system, which differs from the operational model of public departments.

“We do not rule out the possibility that public capital enterprises may refer to the principles of fairness, impartiality, and transparency outlined in our Procurement Law when managing their daily operations.”

Furthermore, he highlighted that the government has opened investment opportunities, particularly in the financial sector, to local institutions and encourages their participation based on market dynamics.

In cases of public disasters, the government underscores the importance of swift action and commits to publicly disclosing the procurement process afterward to ensure transparency.

However, concerning the public works contracting system, there is a proposal to review the engineering contracting framework alongside the Public Procurement Law.

In this context, Tai stated that the government will adopt a two-step approach: “First, complete the legislative work on the Public Procurement Law, and then the Public Works Bureau (DSOP) will assess and implement measures to optimize government procurement.”

Supplementing Tai’s remarks, the bureau emphasized that while the current public works contracting system is specialized and remains in effect, it will undergo a comprehensive review and revision in the future, guided by the implementation of the Public Procurement Law.

Also yesterday, the AL voted on the Investment Fund Law bill and the Medical Device Regulatory System bill.