Shura panel opposes plan to lower contract review threshold from BD300,000 to BD100,000

TDT | Manama

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Plans to push an extra thousand government contracts each year through legal review have been thrown off course, after a Shura Council committee recommended dropping a proposed law aimed at widening the remit of Bahrain’s Legislation and Legal Opinion Commission.

The amendment, brought forward by MPs, would lower the threshold for mandatory contract scrutiny from BD300,000 to BD100,000.

It is set to be debated in Sunday’s session, but the Legislative and Legal Affairs Committee has advised against adopting it in principle. In its report, the committee argued that such a move would weigh down the Commission with additional work, risking delays across public services and procurement.

The Ministry of Justice backed this view, warning that reducing the threshold would stretch the Commission’s staff and disrupt contract procedures.

The current limit was raised in 2010, the committee noted, to account for rising prices and the growing scale of public spending. At that time, it stood at BD100,000.

The decision to triple it was based on the need for greater flexibility, especially in dealings tied to investment and time-sensitive services.

The committee found no pressing reason to return to the previous figure, and questioned why a rule dropped fifteen years ago ought to be revived.

The Commission already examines around 450 contracts each year. Many are detailed, with multiple annexes and drafts.

Lowering the bar, the committee said, would double that load and dilute the attention given to larger deals.

Public bodies would be forced to send smaller contracts for legal review, which could hold up work and increase delays. The committee also flagged inconsistencies in the draft law’s wording.

The explanatory note refers to “transactions” and “contracts”, yet the legal article itself deals only with contracts.

That distinction matters: not every transaction is a contract, and the law as written doesn’t account for one-off decisions or acts made without agreement between parties.

Several layers of oversight are already in place. Ministries are required to run contracts past their own legal teams and gain clearance from the Ministry of Finance before signing anything.

Public money

The Tender Board handles bidding and supplier appeals, while the National Audit Office keeps an eye on how public money is spent.

In the case of contracts worth more than BD300,000, the Commission already steps in.

The committee added that public authorities are still free to consult the Commission on lower-value contracts if needed.

That, it said, keeps the system flexible without pushing the Commission into every minor deal.

Evidence

No evidence was provided to show that the current law had caused problems or left loopholes.

Nor did the proposal spell out how the change would improve the handling of public contracts.

On that basis, the committee has recommended that the Council reject the amendment when it comes up for debate.