Bolkestein: ‘terror threat tenders’ can bend the rules

Date: 20/06/02

By Peter Chapman

EUROPEAN governments can ignore public tendering rules when national security is under threat, says Single Market Commissioner Frits Bolkestein.

His comments follow a clamour by member states to urgently acquire vaccines for anthrax and smallpox following the terrorist attacks of 11 September, without having to undergo lengthy public tendering procedures. These are designed to ensure major contracts are awarded to firms offering the best value for money.

Bolkestein said small print in EU procurement laws allowed member states to 'supply contracts that are declared secret or the execution of which must be accompanied by special security measures'.

At the same time the European Court of Justice had also provided a 'degree of discretion when adopting measures which they consider to be necessary in order to guarantee public security'.

However the Dutch commissioner, who has the job of policing the fair tender rules, said such opt-outs should be the exception to the rule and must be 'restrictively construed on a case-by-case basis'.

The UK government caused a storm of protests in April when it announced a 50 million contract for a smallpox vaccine to biotechnology firm PowderJect.

The deal led to sleaze allegations after it emerged that the firm's founder, Paul Drayson, was a donor to Tony Blair's Labour party.

Bolkestein said he still did not have enough information to say whether the UK had followed the rules when it awarded the PowderJect contract.

European governments can ignore public tendering rules when national security is under threat, says Single Market Commissioner Frits Bolkestein.