Conflicts of interest in public procurement : Malta’s adherence to the EU Directive 2014/24

Abstract

The reform of the EU Public Procurement Directive 2014/24 sought to create a fair and transparent system of procurement across all EU borders. It established flexible and efficient provisions of procurement to help build a strong foundation of procurement principles. This Directive proved to be empirical given that, in the area of public procurement, there are growing concerns on the emergence of illegal practices that threaten the ethical integrity of the public sector. One of these concerns involves the rise of conflicts of interest in tender awards, which highlights a threat to public sector transparency. Multiple studies have attempted to investigate the nature of conflicts of interest and their implications on public sector performance, yet little studies have attempted to delve beyond the surface and explore the essence of this issue. To be able to identify whether Malta is adhering to the EU Directive 2014/24 in the context of conflicts of interest and whether there are any remedies to effectively combat their resurgence in public procurement processes, this study incorporated two research sets, from a qualitative and a quantitative aspect, to gather data that can explain reasons for both the statistics and the nature of conflicts of interest. The quantitative research found that conflicts of interest are uncommon, yet a periodic trend emerges from the research. Alternatively, the qualitative research found that conflicts of interest are, to a certain extent, “inevitable” within Malta’s small island situation. The findings imply that conflicts of interest cannot be altogether blocked, but their emergence can be limited, with the right application of procurement tools, the right amount of enforcement and the appropriate instillation of work culture in the public sector.