Get politics out of public procurement to get value for taxpayers’ money, says The Malta Chamber

The Malta Chamber of Commerce, Enterprise and Industry has renewed its call for an overhaul of Malta’s public procurement framework, saying the latest developments surrounding Malita Investments plc once again expose structural weaknesses that risk undermining trust in how public contracts are issued and awarded.

In a strongly worded statement, the Chamber stressed that regardless of whether specific allegations materialise, the mere possibility of uncertainty is evidence of a system that requires immediate reform.

“Such situations, whether they effectively happened or not, once again highlight the urgent need for a robust, transparent and accountable public procurement framework in Malta,” it said, noting that it has been advocating for such reforms since 2021. “Every euro of public expenditure must be governed by clear rules, effective oversight and ethical conduct to safeguard the public interest and ensure value for taxpayers’ money whilst also ensuring a level-playing field for all.”

Clear separation between political decisions and administrative responsibility

The Chamber emphasised the need for a firm demarcation between political decision-making at ministerial level and the administrative and executive responsibilities of the civil service.

It warned against any “attempt to blur the different and distinct responsibilities”, particularly when it comes to the awarding and management of public contracts. While decisions such as whether to privatise or not fall within the political sphere, the Chamber stated that once the political direction is set, “the running of competitive processes and the selection of contractors is entirely a matter of executive competence that must be carried out professionally, impartially and independently.”

Public procurement accounts for a significant share of government spending and directly impacts economic competitiveness, public service quality and citizens’ quality of life, the Chamber noted.

If procurement processes are not transparent, fair or efficient, “it undermines trust in institutions, distorts competition, discourages reputable operators and can result in significant waste or misuse of public funds.”

The Chamber’s key reform proposals

The Malta Chamber urged the swift adoption of several proposals it has repeatedly put forward, including:

• A clear governance structure separating political direction from operational procurement decisions, with ministers setting vision but not influencing contract awards.
• A publicly available national procurement outlook, published at least six months in advance and covering all government entities to allow businesses to prepare and compete fairly.
• Systematic preliminary market consultations and the use of independent experts when drafting tender documents to improve clarity and ensure better long-term value.
• A shift away from “cheapest compliant bid” criteria, favouring quality- and performance-based evaluations that provide stronger returns on investment.
• Stricter oversight of direct orders and contract variations, supported by full documentation and justifications.
• A comprehensive and user-friendly public Contracts Register, covering all tenders and direct orders, including milestones, deliverables, payment timelines, disputes and variations.

The Chamber called on the Government, Parliament, oversight institutions and all contracting authorities to treat public procurement reform as “an immediate national priority”, warning that incremental or delayed progress is no longer sufficient.

“Ethical, transparent and professionally managed procurement, underpinned by a clear separation between political decision making and executive administration, is essential to safeguard public finances, support reputable businesses and restore citizens’ trust in how public projects are awarded and managed,” it concluded.