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Last update - 00:00 15/04/2007

Gov't approves controversial amendment to Tender Law

By Motti Bassok, Haaretz Correspondent

The government passed an amendment to the Tender Law on Sunday that exempts ministries from issuing tenders that are under NIS 4 million.

In the past, ministries could exempt themselves from issuing tenders only if they were under NIS 700,000.

The amendment is based on recommendations made by the inter-ministerial team headed by Finance Ministry Director General Yarom Ariav. Ariav believes that the amendment will increase efficiency and enhance the ministries' abilities to function, while continuing to hold tenders as the optimal way to close contracts.

Accountant General Yaron Zelekha, who is responsible for implementing the Tenders Law, objects to the amendment and believes that it will lead to corruption as ministries will now be able to favor their associates. Zelekha fears that the amendments will not only stain the government with corruption, but destroy equal opportunity and cost taxpayers extra.

Attorney General Meni Mazuz supports the inter-ministerial team's recommendations, but says that "things should not be taken any further."

Zelekha wrote to Ariav that it would be a "historic mistake" to point to bureaucracy as a reason to undermine the Exemptions Committee. The result would be that more than 90 percent of the requests now vetted by the Finance Ministry would simply be passed to the ministries, Zelekha wrote.

The Movement for Quality Government in Israel supports Zelekha. On March 28, the movement demanded that the recommendations - which would render the Tenders Law meaningless - be rejected. The changes would simply open the door to corrupt contracts costing taxpayers tens of billions of shekels a year, the group warned.

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