No-Bid Contracts Raise Corruption Fears

Recent amendments to the Public Finance Regulation have created significant concern among financial experts and former officials, who warn that allowing no-bid contracts opens a direct gateway to corruption. The current administration has amended these regulations three times in recent months, progressively expanding the government's ability to bypass competitive bidding processes. The changes include amendments from December 2023 allowing proposals without bidding, February 2025 permitting goods and services procurement without competition, and October 2025 granting the Cabinet authority to award projects to specific parties without any bidding process. These temporary amendments enable single-source procurement, a non-competitive method that critics argue paves the way for awarding contracts to pre-selected parties. Former officials highlight the contrast with past practices. Ismail Zariyand, who helped draft the original regulation, noted that while a 2016 amendment allowed no-bid contracts for state-owned enterprises, it required that the SOE actually perform the work. "What they are doing now is just finding someone and handing over the work," Zariyand stated. "That isn't just paving the way for corruption—it is direct corruption." The concerns are illustrated by the RCC Council Buildings Project, where construction was awarded without public announcement despite other companies submitting lower-cost proposals. The latest amendment also grants the Finance Minister authority to waive key financial safeguards including bid security and performance guarantees. Former Auditor General Niyaz Ibrahim condemned the changes, stating that similar rules have enabled state looting in the past and calling for public opposition. Even with the goal of expediting projects, experts argue contracts must be awarded through competitive tender to ensure the least cost to the state and prevent corruption. — Source fragments: