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Public Procurement Contracts

Dáil Éireann Debate, Thursday - 23 September 2021

Thursday, 23 September 2021

Questions (10)

Gerald Nash

Question:

10. Deputy Ged Nash asked the Minister for Public Expenditure and Reform if he will provide an outline of recent communications with the Minister for Health pertaining to the scale of non-competitive and non-compliant procurement practices by the HSE; and if he will make a statement on the matter. [45498/21]

View answer

Written answers

In July 2021, officials from HSE Procurement presented to the interim Procurement Reform Board on the HSE’s self-assessment of procurement performance in 2020. While the Board welcomed the provision of the assessment, they raised concerns with the figures presented and the Board’s Chairman subsequently wrote to me to advise me of the situation.

The HSE’s self-assessment was that 63% (€1.25 billion) of its analysed procurement spend in 2020 was not competitively procured. Of this, €111.6m of non-Covid expenditure was declared to be non-compliant with public procurement regulations and €108.4m of non-Covid expenditure was declared to be awarded following a non-competitive practice.

While I wish to acknowledge that the health service and its procurement function faced extraordinary challenges during the pandemic, non-competitive and non-compliant procurement risks value for the public, exposes the State to the risk of legal challenge, and falls short of the requirements under national and European law and Government policy.

Accordingly, on the 9th August, I wrote to the Minister for Health, outlining the scale of the issue and expressing my concerns. While responsibility for this lies with the Minister for Health’s department, as Minister for Public Expenditure and Reform, I am concerned that my Department’s expenditure and procurement policies are correctly applied.

I have requested that the Minister for Health provide me with an update on the arrangements, actions and targets being undertaken by his department, in conjunction with the HSE and the health providers it funds, to put in place appropriate measures to make progress on procurement performance. I have indicated that officials from my department, including the Chief Procurement Officer and his staff, are available to provide guidance and support. I have also asked that the interim Procurement Reform Board to remain appraised on this matter.

Questions Nos. 11 to 13, inclusive, answered orally.
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