GSD Questions Government’s Changes To Concession Rules
The GSD is questioning changes to Gibraltar’s concession contract regulations that allow direct awards in certain circumstances, asking what prompted the amendments and whether any specific concessions are being considered. Leader of the Opposition Keith Azopardi has called on the Government to explain its intentions, citing previous concerns raised by the Principal Auditor over public procurement.
A statement from the GSD follows below:
What is behind the change of rules that would allow the Government to award multi-million pound concessions without tender. What is it that the Government intend and to whom do they intend to give a concession without tender? Who would benefit from such a transaction and why?
All these are questions that arise from the sudden introduction of carve outs to the Procurement (Concession Contracts) Regulations that would permit the Government to side-step tendering processes as well as consider additional factors when considering how long someone should have for a commercial concession.
Leader of the Opposition, Keith Azopardi said: “The GSLP Government needs to be clear with people as to what is intended here because the rules are one thing but its application is another and people are entitled to know what concession in particular is being considered and who the Government are intending to benefit by a concession.”
Some of these changes mimic amendments that the GSLP Government introduced in November 2025 following the Principal Auditor’s last report. The Principal Auditor had been very critical about the lack of adherence by the Government with tendering and procurement rules in respect of certain contracts. Two of those were with entities connected either to a Government Minister or a GSLP election agent.
The Principal Auditor had expressed general concerns that lack of tendering could give rise to the “perception of favouritism or corruption” or “damage to market confidence.” He also expressed concern that the Procurement Office had been bypassed by Ministers citing an example where the Head of Procurement found out about the prospective award of a contract only as a result of a Government press release.
Rather than accept the Principal Auditor’s criticism it will be recalled that the GSLP launched into a seven week Parliamentary tirade against the Auditor. All GSLP Ministers then voted in a Motion condemning the Auditor and rejecting aspects of his Report. That was unprecedented and disgraceful. They doubled down on that by amending the Procurement (Public Sector Contracts) Regulations to allow them to award public works, supply or service contracts without tender in certain circumstances.
Instead of ensuring that there would be retendering as necessary the GSLP changed the law to allow them to award some contracts without a tender. On that occasion they sought to legitimise situations where they had faced deep criticism from the Auditor. They have now extended that principle to concession contracts. Why and with what contract in mind?
