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杏MAP导航 Francis enacts new Vatican law for awarding public contracts

杏MAP导航 Francis releases an Apostolic Letter creating legislation to govern the awarding of public contracts of the Holy See and Vatican City State, which shall follow the principles of transparency, centralized control, and competition to reduce the risk of corruption.

By Vatican News

The Apostolic Letter in the form of a Motu Proprio released on Monday by 杏MAP导航 Francis is the result of four years of work carried out by several Vatican offices. The text will serve as a single reference point for awarding public contracts to external entities.

The Letter is entitled 鈥淥n transparency, control and competition in the procedures for awarding public contracts of the Holy See and Vatican City State鈥. It is composed of 86 articles with an additional 12 relating to juridical protection in cases of litigation.

The piece of legislation is in conformity with the United Nations Convention Against Corruption, signed in Merida. It replaces previous regulations in force at Administration of the Patrimony of the Apostolic See (APSA) and the Governorate of Vatican City State. It extends to all Entities of the Holy See which up to now lacked their own laws governing contracts and public works.

Like a good family father

鈥淭he diligence of a good family father,鈥 writes 杏MAP导航 Francis, 鈥渋s the general principal and of the utmost respect, on the basis of which all administrators are required to perform their functions.鈥 Good management of public goods, he adds, requires 鈥渇aithful and honest administration.鈥

鈥淭he global economy and increased interdependence have brought to the fore the possibility of achieving significant cost savings through the work of multiple suppliers of goods and services.鈥

The new regulations are aimed at 鈥渇ostering transparency, control and competition in the procedures for the awarding of public contracts stipulated on behalf of the Holy See and Vatican City State.鈥

Companies and entities which supply goods, services, and public works will be guaranteed 鈥渆qual treatment and the possibility of participation through a special Register鈥 and special procedures.

On guard against corruption

The President of the Vatican Tribunal, Giuseppe Pignatone, says the new legislation incorporates internationally-recognized best practices, 鈥渋n order to achieve significant cost savings, efficient resource management, and a renewed commitment against the risk of corruption.鈥

鈥淭he new norms are a warning to rediscover how important, and urgent, a better management of resources is,鈥 according to Vincenzo Buonomo, Rector of the Pontifical Lateran University and professor of international law.

Purpose of new norms

Article 1 explains the purpose of the new law, which are: the sustainable use of internal funds, transparency of award procedures, 鈥渆qual treatment and non-discrimination of tenderers, in particular through measures to combat illegal competition agreements and corruption.鈥

Basic principles

Article 5 lists the fundamental principles which are founded on 鈥渆thicality orienting the economic choices and the interlocutors upon parameters of respect for the Social Doctrine of the Church; administrative autonomy, and subsidiarity in the management choices of the Body; loyal collaboration between the Entities and the different sections of the Governorate.鈥

The goal is to obtain 鈥渃ost-savings, effectiveness, and efficiency鈥, through 鈥減lanning and rationalization of expenditure鈥 while avoiding unnecessary operations, and in particular an award procedure which 鈥渕ust be transparent, objective, and impartial.鈥

Avoiding conflicts of interest

Measures are taken against conflicts of interest, illegal competition agreements, and corruption. These serve to avoid 鈥渁ny distortion of competition and ensure equal treatment of all economic operators.鈥

Reasons for exclusion

Economic operators who become subject to investigation, prevention measures, or convictions at first instance for 鈥減articipation in a criminal organization, corruption, fraud, terrorist offences鈥, 鈥渓aundering of the proceeds of criminal activities鈥, and 鈥渢he exploitation of child labour鈥 must be excluded from the Register and participation in tenders.

One of the causes of exclusion is the failure to fulfill 鈥渙bligations relating to the payment of taxes or social security contributions in accordance with the regulations of the country in which the operator is incorporated鈥, as well as residing or having settled in States 鈥渨ith privileged tax regimes.鈥

Centralization

Except in certain cases established as exceptions, 鈥渁ll goods and services, under penalty of nullity of the relevant contract, are ordinarily acquired by the Entities in a centralized manner.鈥 The 鈥渃entralized authorities鈥, reads Article 15, include both APSA 鈥渋n matters concerning the Dicasteries of the Roman Curia鈥 and institutions connected to the Holy See, as well as the Governorate. There are exceptions to centralization, but they must be duly justified.

Every six months, the Secretariat for the Economy, having consulted with APSA, will publish and update 鈥渢he list of prices and the reference fees for goods and services鈥, together with the labour costs of the professionals registered in the Register. These will take into consideration prices and fees in the markets where the Vatican institutions are supplied. Vatican Entities are required to plan their purchases by 31 October of each year.

Vatican employees on selection boards

The motu proprio also establishes a list at the Secretariat for Economic Affairs with the names of those employees and temporary professional appointees who are authorized to act as expert planners and members of the selection board. These members will be drawn by lot.

They will rotate among the committees, but always in accordance with their specific professional qualifications.

A detailed list of 鈥渋ncompatible characteristics鈥 is laid out, among which is a familial relationship 鈥渦p to the fourth degree鈥 or affinity 鈥渦p to the second degree鈥 of a person who has submitted a bid. Another disqualifying trait is if the person has been a member in the previous five years of an economic operator who has submitted a bid.

International rules

The new legislation promulgated by 杏MAP导航 Francis takes into account the fundamental principles and aims of Canon Law and the peculiar nature of the Vatican City State. It is also a treasure trove of the effective rules and 鈥渂est practices鈥 in force in many States.

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01 June 2020, 12:00