Justice Minister Rejects Amendment to Review Government Contracts: Says It Hinders Decision-Making Speed
During a session of the National Assembly today, Minister of Justice, Islamic Affairs, and Endowments, Nawaf Al-Maawda, rejected a parliamentary amendment to Article 2 of the Law on the Reorganization of the Legislative and Legal Opinion Authority. The proposed amendment would subject all government contracts exceeding 100,000 Bahraini Dinars to review by the Authority.
Al-Maawda stressed that the proposed amendment could create an additional burden on government-owned companies. He explained that requiring review by the Legislative and Legal Opinion Authority for contracts involving relatively small amounts could slow down procedures and delay decision-making, ultimately negatively impacting the speed of business transactions.
The Minister highlighted the need for swift decision-making in the market, especially concerning state-owned enterprises. He emphasized the importance of supporting these companies by streamlining their processes to enable them to compete both locally and internationally. Despite global price increases that impact the value of contracts and deals for local companies, including government-owned ones, the government has decided to maintain the current threshold for contract review at 300,000 Bahraini Dinars. This decision reflects the government's view that contracts below this threshold have not seen significant legal challenges or disputes in the courts.
Al-Maawda further explained that lowering the review threshold to 100,000 Dinars would lead to a rise in the number of contracts requiring additional review, creating more bureaucratic procedures. The goal, he emphasized, should be to support government companies and facilitate their operations, rather than creating obstacles for them.
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