LIMS has published a series of reports under its APPEL C program (Apply Public Procurement Law to End Corruption), revealing rampant corruption and a near-total lack of accountability in Lebanon’s public procurement system. Ministers and public officials routinely manipulate the bidding process to favor specific bidders, often for personal gain, robbing citizens of basic services. While this conduct is subject to various articles of the Penal Code meant to punish such crimes, enforcement is virtually non-existent, allowing corruption to thrive with impunity. APPLE C reports specifically call out the Ministries of Energy and Water, Telecommunications, and Public Works and Transportation as major violators.
The reports also detail how ministers bypass fair competition to favor cronies. They tailor tender conditions to fit specific bidders, strategically split or merge contracts, manipulate deadlines to exclude competitors, extend expired contracts, and invoke “exceptional abilities” to justify their choices. The 2021 Public Procurement Law, rather than curbing this behavior, inadvertently gave ministers more power over tender committees.
To address this pervasive corruption, the reports recommends several key reforms: (1) return the tender committees to the Public Procurement Authority to eliminate conflicts of interest and political interference; (2) enforce anti-corruption laws and the Penal Code to hold corrupt actors accountable; (3) promote healthy competition among bidders to improve service quality and reduce costs; and (4) adopt a market-based approach, allowing multiple service providers to compete for consumers, rather than having ministers select a single provider for everyone.
LIMS stressed the importance of applying these principles in the upcoming tender for electronic fiscal stamps (e-stamps). These government-issued stamps, used to verify payment for taxes and fees, have become scarce due to Lebanon’s currency crisis. The Ministry plans to implement e-stamps by 2024 to address the shortage, but LIMS warns that, based on previous tender experiences, the contract is likely to be awarded to a single provider, creating a long-term monopoly. Instead, LIMS advocates for opening the market to multiple service providers, who should compete to distribute e-stamp machines across Lebanon. By contracting with bookstores, shops, and commercial centers—much like lottery machines, this approach would promote competition, improve service delivery, and increase state revenue through fees paid for each issued stamp.
- LIMS Exclusive: Ministers Subject Public Procurement to Their Desires and Preferences , August 5, 2024: Limslb, Article AR
- LIMS exclusive: What Role Does the Penal Code Play in Deterring Corruption in Public Contracts? August 8, 2024, Limslb, Article AR
- Lebanese Judiciary Seals the Mseilha Dam: Is Accountability Approaching? August 11, 2024: Al-Arabiya, Video Interview AR
- The Mseilha Dam Scandal: Suspicious Urgency and Implementation Results Reveal Intentions, August 12, 2024: Aliwaa, Article AR
- LIMS exclusive: How Ministers Circumvent the Law to Grant Monopolies to Favorable Companies, August 14, 2024: Limslb, Article AR
- LIMSLB Exclusive: The Absence of Accountability Is an Opportunity for Corrupt Offenders to Strike Again, August 21, 2024: Limslb, Article AR
- LIMSLB Exclusive: Loopholes in the Public Procurement Law Are Exploited by Officials to Secure Contracts Through “Connections”, August 23, 2024: Limslb, Article AR
- LIMSLB Exclusive: Lebanon Fights Corruption in Legislation While Reinforcing Monopoly in Practice, August 30, 2024: Limslb, Article AR
- LIMSLB Exclusive: The Fiscal Stamp: A Tax Paid Multiple Times, and the Electronic Stamp—A New Deal Under Scrutiny, August 29, 2024: Limslb, Article AR