Faroese businesses call for greater transparency in municipal procurement

Nearly one in three Faroese companies that have participated in municipal tenders and public procurement report experiencing unfair treatment, according to a new survey by the Faroese Competition Authority.

The authority has recommended stricter legislation to increase transparency and update existing rules for public institutions, following its investigation into municipal procurement practices.

A key finding reveals that businesses believe location within the municipality, personal connections to municipal officials, or irregular practices—such as fraud and bribery—can influence tender outcomes. Companies surveyed demanded greater transparency and easier access to procurement information.

The report suggests establishing a national procurement portal for both state and municipal tenders to improve oversight. It also calls for stronger enforcement of existing rules and clearer guidelines to prevent biased selection of suppliers.

The Competition Authority will now consult the Minister of Labour on potential next steps.