Audit report finds institutions bypass tender rules

Institutions do not always follow rules requiring them to put goods and services out to tender, a report on the 2025 public accounts shows, Kringvarp Føroya reports.

Institutions also do not always apply for exemptions from the tendering requirement, even when that option is available.

Goods and services costing more than 500,000 kroner must be put out to public tender on the procurement portal. For purchases between 50,000 and 500,000 kroner, an institution must request bids from at least two suppliers or put the purchase out to tender on the portal.

Some institutions say certain suppliers are the best choice. In other cases, they consider a service so specialised for the institution that it is not suited to ordinary competition between several suppliers.

The National Audit Office has also pointed out that nothing prevents institutions from requesting prices from several suppliers for goods and services costing less than 50,000 kroner, to ensure the best value for taxpayers’ money.