Under the APPLE C program (Apply Public Procurement Law to End Corruption), LIMS has unveiled a policy brief that exposes the critical challenges confronting Lebanon’s public procurement law (Law 224/2021). This report highlights risks associated with the absence of an “estimated value” for public procurement projects. Without an estimated value, it becomes exceedingly difficult to detect collusion among bidders or between bidders and the administration. Collusion can result in inflated bids, which ultimately lead to higher costs for the government and, by extension, the taxpayers.

Without a benchmark, it is challenging to determine if a bid is excessively high when the government is buying and to justify rejecting it. This can result in the government overpaying for goods and services. On the flip side, in cases where the government is selling (public services are auctioned off), the estimated value helps to identify abnormally low bids. Accepting such low bids can lead to lower income for the government. In exceptional circumstances, having an estimated value can also help assess whether a single bid might be acceptable. Additionally, the estimated value plays a crucial role in preventing the division of large projects into smaller parts to avoid oversight by regulatory authorities. This practice, known as bid splitting, can lead to corruption and inefficient use of resources.
 
LIMS’s policy brief highlights that the lack of a clear and enforceable estimated value facilitates fraudulent activities, collusion, and evasion. This, in turn, increases government expenses unnecessarily and reduces public revenue. The brief calls for urgent reforms to implement clear guidelines and mechanisms for establishing and enforcing estimated values in all public procurement processes.

• Exclusive LIMSLB: The Absence of Appraisal Value Allows Manipulation and Collusion in Public Contracts, May 21, 2024: LimsLb,  Article AR