Canary Islands Public Procurement Faces Serious Compliance Challenges

The public procurement landscape in the Canary Islands is currently grappling with alarming non-compliance rates, as highlighted in a recent report by the Audiencia de Cuentas de Canarias. This report sheds light on the significant shortcomings within the region’s public contracting system, raising concerns about transparency and accountability.

Staggering Non-Compliance Rates Uncovered

According to the findings presented by Pedro Pacheco, the president of the Audiencia de Cuentas, only a mere 7% of the contracting authorities in the Canary Islands are adhering to the Public Sector Contracts Law. This startling statistic was revealed during a parliamentary committee meeting, where Pacheco discussed the results of an extensive analysis involving 819 contracting authorities. The report indicates a pervasive lack of proper planning and programming of contractual activities throughout the archipelago, which is a critical component of effective public procurement.

While the data primarily reflects the situation as of 2022, Pacheco emphasized that these troubling trends have continued into 2023 and are indicative of a deeper, systemic issue within public administrations. The implications of such non-compliance are far-reaching, potentially affecting the quality of public services and the integrity of the procurement process.

Concerns Over the Use of Minor Contracts

One of the most pressing issues identified in the report is the excessive reliance on minor contracts, which account for a staggering 60% of local government procurements in the Canary Islands. These contracts are intended for exceptional and unforeseen circumstances; however, their widespread misuse raises significant red flags. Pacheco pointed out that the appeal of minor contracts lies in their simplified procedures, making them attractive to public officials and managers.

Despite their intended purpose, the frequent use of minor contracts can lead to a lack of transparency and fairness in the procurement process. The ease of access to these contracts may encourage practices that undermine competitive bidding and accountability, ultimately jeopardizing the integrity of public spending.

Pathways to Enhanced Compliance and Planning

Pacheco firmly argued against the belief that effective planning for contracts is unattainable for public administrations. He cited the Servicio Canario de la Salud as a prime example of an entity that successfully fulfills its contractual planning obligations, demonstrating that effective programming is indeed feasible, even in complex bureaucratic environments. This success story serves as a beacon of hope for other authorities struggling with compliance.

Among the few compliant authorities, 25 are part of the Autonomous Community, while 29 belong to local entities, primarily cabildos. Notably, the islands of Gran Canaria, Tenerife, and El Hierro have made strides by implementing unified planning across their contracting authorities. However, the situation at the municipal level remains less encouraging, with only a handful of municipalities, including Tuineje, Teguise, and Santa Cruz de Tenerife, actively engaging in prior contract planning.

The report advocates for the establishment of regional regulations that would define minimum requirements for contractual programming. Many existing plans currently do not align with national law, which exacerbates the compliance issue. Pacheco stressed the importance of the General Directorate of Heritage in clarifying these obligations, lamenting that programming is often viewed as a non-essential task at certain administrative levels.

Furthermore, Pacheco highlighted the critical need for post-evaluation of programming, which should ideally occur at the end of each budgetary period. Unfortunately, this essential oversight is rarely conducted, leaving public procurement vulnerable to inefficiencies and mismanagement. The lack of rigorous evaluation mechanisms underscores the urgent need for reform within the Canary Islands’ public sector.

Key points

• Only 7% of contracting authorities in the Canary Islands comply with the Public Sector Contracts Law.
• The report analyzed 819 contracting authorities, revealing a lack of planning and programming.
• Minor contracts make up 60% of local government procurements, raising concerns about their misuse.
• The Servicio Canario de la Salud is cited as a successful example of meeting contractual planning obligations.
• Only a few municipalities engage in prior planning of contracts.
• The report advocates for regional regulations to improve contractual programming compliance.
• Post-evaluation of procurement programming is rarely conducted, indicating a need for better oversight.