By Elias Hazou
IN THE latest twist on the procurement of traffic cameras, the government is reportedly considering cancelling the tenders process or else face a major lawsuit by disgruntled bidders.
Following extensive media coverage last week on alleged procedural discrepancies in the submission and evaluation of tenders, President Tassos Papadopoulos took a personal interest in the matter. Last Wednesday the President requested a report from the relevant Communications Minister and from the Accountant-general. By Thursday Papadopoulos had the report in his hands.
The issue surfaced when some of the bidding companies complained of a number of irregularities, including last-minute changes to the terms and conditions and resubmitting paperwork known as “compliance statements.”
In late March, the Tenders Board took recourse to the Attorney-general’s office, which advised that the tenders process did not ensure “healthy competition” among the bidding companies. For example, the AG’s office found that some bidders submitted the compliance statements after the deadline or that they left vital information out of the paperwork. Some companies even claim they were not given sufficient time to submit their Best and Final Offers (BAFO).
Chairman of the Tender Board Lazaros Lazarou told the Cyprus Mail that just two companies had complained in writing and denied there were any thoughts of cancelling the process. “Both companies had some misgivings on procedural, not technical, issues,” he added.
What all this means is that the customer — the government –could be liable to a civil lawsuit if it does not nullify this tenders process and initiate another one. The purchase of traffic cameras will reportedly cost taxpayers £10 million. If irregularities in the tenders process are established, and the bidders sue, then taxpayers will end up also paying for the compensation.
But the burden of proof would be on the companies suing, Lazarou elaborated. They would have to prove in court that they suffered financial loss.
Press reports suggest that the involved ministries are planning to consult the AG’s office again on the best time to cancel the procedure.
In the face of these delays, the installation of speed cameras on the island’s highways has been termed a high-priority issue. It is hoped they will help curb the high road toll. Drivers would be penalised for crossing red lights, speeding, not wearing seatbelts and talking on cellular phone. About one-third of the devices would be dummy cameras, although drivers won’t be able to tell the difference.
On its own, the Tenders Board does not have the authority to terminate a process; it would first need to be authorised by the Department of Electromechanical Services or the Cabinet. In turn, the Cabinet must appoint a committee of inquiry to establish any discrepancies.
The Tenders Board is responsible for reviewing bids in all government procurement contracts worth over £100,000.
The purchase of the cameras has been a saga in the making. The process began back in June last year, with the bidders submitting their offers in November. It was scheduled for completion by early this month. The first twist came when the April 8 deadline was extended to May 31, although it’s now likely the process will be terminated before that date. In total, 17 companies have submitted their offers.
Press reports yesterday said the involved government departments had already been verbally instructed to prepare for a new tenders process, but this could not be independently confirmed.
