David Cullinane (Waterford, Sinn Fein)
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20. To ask the Minister for Public Expenditure and Reform the failures or non-compliance with public procurement rules identified by his Department; and if he will make a statement on the matter. [10496/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Public Procurement guidelines require that a competitive process should be the norm when purchasing and awarding public contracts except in duly justifiable circumstances. Even in the case of procurement which might not be subject to the full scope of EU Directives, the EU Commission and European Court of Justice have ruled that EU Treaty principles must be observed.  The essential Treaty principles include non discrimination, equal treatment, transparency, mutual recognition, proportionality, freedom to provide service and freedom of establishment.  There is also a requirement to publicise contracts of significant value to a degree which allows parties in other Member States the opportunity to express an interest or to submit tenders.

Department of Finance Circular 40/02: Public Procurement Guidelines requires Central Government Departments to complete an annual report in respect of contracts above a €25,000 threshold (exclusive of VAT) which have been awarded without a competitive process.  The circular states that all contracts awarded without a competitive process should be subject to an internal review, preferably by the Internal Audit Unit or alternatively by an appropriate senior officer who is not part of the procurement process.  The annual report signed-off by Accounting Officers sets out a legitimate reason for not using a competitive process in relation to each contract.  The report is forwarded to the Office of the Comptroller and Auditor General. 

The Corporate Governance Standard for the Civil Service and the Code of Practice for the Governance of State Bodies also identify procurement as one of a number of activities requiring special attention in promoting good corporate governance.  It is the responsibility of the Government Departments and State Bodies to satisfy themselves that they adhere to the requirements for public procurement and to make the necessary arrangements to ensure that tender processes are carried out in an appropriate manner. 

In relation to compliance, public bodies are subject, at the Comptroller and Auditor General's discretion, to examination regarding their adherence to EU and National rules on public procurement.