NASSAU, BAHAMAS- Minister Finance Michael Halkitis defended the government’s public procurement practices during the budget debate, arguing that the system has become more transparent and accountable despite criticism from the opposition.
Addressing concerns about the administration’s procurement processes, Halkitis said public procurement is “not static” and continues to evolve through ongoing reforms aimed at strengthening transparency, improving oversight and building institutional capacity.
“Strengthening procurement is not only about systems. It is about people, capacity and professionalism,” Halkitis said.
The minister highlighted efforts to improve procurement expertise within the public service, noting that 60 public servants from various government agencies have attained Level 2 certification from the internationally recognized Chartered Institute of Procurement and Supply. Three additional officers have completed a Level 4 diploma programme during the past 15 months.
According to Halkitis, 30 participants from government and the private sector also completed an Inter-American Development Bank-supported course on preparing bidding documents, while another 30 public officers received training in evaluating vendor proposals.
He said the Ministry of Finance plans to conduct a comprehensive operational assessment of the procurement system covering the period from 2021 to 2026.
“It is envisaged that this report will provide valuable insights into areas where improvements can be made to enhance the existing procurement platform and will guide the development of policies to further strengthen the system,” he said.
Halkitis noted that public procurement operates through several categories, including open competitive bidding, restricted tendering and, in limited circumstances, sole or direct tender awards.
“Sole tender awards, on the other hand, are permitted under specific and clearly defined conditions, such as urgency, technical constraints or where there’s only a single provider,” he said, adding that the Public Procurement Act contains extensive provisions governing such awards.
The minister said procurement transparency has improved significantly since the implementation of the government’s electronic procurement system.
“Through the government’s e-procurement system, we now have a centralized, digital and traceable record of procurement activity across government,” he said. “Contracts are no longer opaque or fragmented. They are captured, monitored and open to scrutiny.”
Halkitis said that since July 2024 the government has published monthly procurement notices detailing the procurement of goods, works and services across ministries and agencies.
During the debate, opposition members challenged the minister’s assertion, arguing that several government agencies and departments have not fully complied with disclosure requirements under the procurement law.
Responding, Halkitis said the system continues to expand and improve.
“I did not say every single government agency is already on the system. There are some that we need to have, but I am saying it is a far cry from what existed before we undertook this reform,” he said.
The minister revealed that approximately 8,000 procurement opportunities worth about $1.39 billion have been awarded between September 2021 and the present.
The majority of the contracts supported infrastructure projects, including roads, government buildings, bridges, docks, airport terminals and runways.
Of the total awards, 29 contracts valued above $2.5 million and worth approximately $569 million were approved by Cabinet. Another 182 medium-sized contracts valued between $400,000 and $2.5 million, totaling approximately $155 million, were approved by the Procurement Board.
Nearly 7,800 contracts valued below $400,000, totaling approximately $660 million, were approved at the ministry level.
“The overwhelming majority of opportunities by number are smaller contracts,” Halkitis said. “That means more access for small and medium-sized Bahamian businesses.”
According to the minister, more than $1.36 billion of the $1.39 billion in contracts awarded went to Bahamian companies.
“This represents more than 98 percent of total procurement spending remaining right here in the Bahamas,” he said. “When this government spends, it is Bahamian businesses that benefit.”
Halkitis also defended public-private partnership arrangements used to finance road projects in Exuma, Eleuthera and Cat Island, describing them as a practical way to accelerate infrastructure development while managing government cash flow.
The minister said portions of approximately $140 million owed to contractors for completed road works had been sold to the African Export-Import Bank through an accounts factoring arrangement.
“The work has been completed, the obligation existed, and what has changed is simply how that obligation is being financed,” Halkitis said. “This is not unusual. This is a recognized and legitimate financing model used internationally to deliver infrastructure efficiently.”
