There is no legal provision for the government to oversee how a local authority awards contracts.
The Department of Infrastructure is the government department responsible for local government, but Infrastructure Minister Ray Harmer has confirmed it plays no role in monitoring procurement processes in authorities.
Lawrie Hooper (LibVannin, Ramsey) had tabled a House of Keys question asking about the rules for local government procurement, whether there was an appeals procedure and the level of oversight from the Department of Infrastructure.
In a written reply, Mr Harmer said that, as local authorities were separate legal entities, they had responsibility for the procurement of goods and services relating to that authority.
Under the Local Government Act, a local authority must draw up standing orders ’with respect to the making of contracts by it or on its behalf, for the supply of goods or materials or for the execution of works’.
The minister said: ’There is no legal provision for the department to monitor either the adoption or the adherence to standing orders.
’This role falls to the elected members of the local authorities.’
He added that the ’model standing orders’, drawn up by the DOI as a guide, did not require an appeal process, but an individual authority could choose to include one.
’These standing orders must include provision for securing competition for such contracts and for regulating the manner in which tenders are invited,’ Mr Harmer said.
’They may exempt from such provision contracts for a price below a specified sum and may authorise the local authority to exempt any contract from the above provisions where the authority is satisfied that the exemption is justified by special circumstances.’
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