Monitoring public procurement in Lebanese public administrations remains a pivotal issue, particularly in the second year of the implementation of the Public Procurement Law. While the law aims to promote transparency and integrity in managing public funds, the findings so far highlight significant challenges.
The Initiative successfully gathered information on 1,501 bids from various sources. Noting that 280 were canceled, while 128 others were not awarded (as reported by the administrations). Of the remaining 1,093 operations, 932 were awarded. Despite this improvement compared to the previous year, these numbers remain limited, considering the law requires compliance by over 200 public administrations nationwide, more than 1,100 municipalities and municipal unions locally, and all diplomatic and representative missions abroad.
One of the key findings of Gherbal Initiative was the complete absence of procurement activities reported by Lebanese diplomatic missions.
Furthermore, Lebanon’s largest municipality, the Municipality of Beirut, did not record any procurement activities, while the Parliament registered only 2 procurement operations over the entire year.
It is noteworthy that only 72 municipalities and municipal unions announced a total of 79 procurement operations, regardless of whether they were later canceled or awarded. This is an extremely low figure by two measures:
Number of transactions: This number represents only 5% of the total 1,501 announced bids.
Number of administrations: It accounts for only 6% of the approximately 1,100 municipalities and municipal unions required to comply with the law.
The data also reveals that 25% of the assessed procurement activities continue to be conducted through direct contracting. The number of such contracts increased from 206 in the first year to 271 in the second year of the law’s implementation, despite the theoretical reduction in cases where such contracts could be used.
Regarding tenders and their values, tenders amounting to 219 million USD were recorded, indicating a relative improvement compared to the first year. However, the high proportion of direct contracts raises concerns about the effectiveness of the law’s implementation and its impact on improving public procurement mechanisms.
Additionally, certain procurement activities were awarded despite violating the law.
Gherbal Initiative identified 22 requests for quotations, 16 tenders, and 2 auctions in which only one bidder participated, yet they were awarded without valid justification, rendering them non-compliant with the law.
This study is based on a comprehensive analysis of available data, emphasizing the importance of enhancing transparency and accountability in public procurement operations to ensure the optimal use of public funds and to strengthen citizen trust in government institutions.