Faroese government rejects law on municipal tenders

The Faroese government does not intend to introduce a law regulating municipal tenders, according to a response from the finance minister to the Competition Authority, reported by KVF.

The Competition Authority says the lack of tender rules has harmful effects. It urged the government to act after a survey found that many people believe personal connections and location may influence municipal decisions, and that tender processes are not transparent or conducted on equal terms.

The finance minister said a law could create a heavy administrative and legal burden for both public bodies and suppliers. Instead, the government wants to continue building on the approach and culture being established through the procurement circular for state authorities.

The minister also said municipal autonomy means councils should have the authority to decide how they spend taxpayers’ money. He recommended establishing tender rules through trust rather than legislation.

The Finance Ministry and the public body Gjaldstovan will invite municipalities to work together on procurement. The municipalities could draw on experience and advice from Keypi landsins, the government’s procurement service, and pursue joint purchasing arrangements.

The Competition Authority supports the minister’s position, saying it could help end the harmful effects of having no tender rules.