Armenia to tighten anti-corruption restrictions in public procurement - government decision

YEREVAN, January 22. /ARКА/. During a meeting on Thursday, the Armenian government approved a set of bills that amend and enhance the Law on Procurement along with several related legislative acts.

As highlighted by Armenian Finance Minister Vahe Hovhannisyan, the establishment of systems designed to eradicate potential corruption in public procurement is a top priority for the government.

He emphasized that the necessity of implementing such mechanisms is embedded in the anti-corruption strategy and is reflected in reports from international partners that were prepared as part of the assessment of the procurement system.

The principles for enforcing the new restrictions were incorporated into the proposed amendments to the Law on Procurement and were discussed with clients, business community representatives, and civil society.

Specifically, it is suggested to legally restrict the involvement of high-ranking government officials and their affiliated companies in procurement activities. Affiliates will include the official's spouse, children, parents, siblings, and individuals residing with the spouse.

According to the proposed model, restrictions will be enforced at four levels of influence:

Level one – the president, the speaker of parliament, the prime minister, deputy prime ministers, the minister of finance, and his deputy responsible for procurement: affiliated companies will be barred from participating in any procurement process;

Level two – individuals in administrative and political roles (excluding members of parliament and community council members), the prosecutor general and his deputies, heads of investigative bodies and their deputies, and secretaries general: affiliated companies will be prohibited from participating in procurements organized by both commercial and non-profit organizations;

Level three – individuals from independent and autonomous government entities, such as the governor of the Central Bank and his deputies, along with the Human Rights Defender: affiliated companies will be barred from participating in procurements organized by the respective contracting authority;

Fourth level – other officials: affiliated companies may participate as long as an official on the tender committee steps aside. If no affiliation is found, the official must sign and publicly disclose a relevant statement.

Hovhannisyan mentioned that any breaches of the affiliation ban will be examined by the Corruption Prevention Commission.

Should a violation be verified, the client will terminate the contract unilaterally, and the company will incur a penalty of 20% of the contract value. The minister further indicated that the new regulations will take effect on January 1, 2027. The Corruption Prevention Commission will be responsible for monitoring their enforcement.-0-