Ministry proposes to verify subcontractors in public procurement of enterprises of importance to ensuring national security
In order to increase the efficiency and transparency of the public procurement process, the Ministry of Transport and Communications draws attention to the need to extend the verification of transactions planned by enterprises of importance to ensuring national security by providing for the possibility of verifying not only the counterparty but also subcontractors.
“During verification of transactions to be concluded by enterprises managed by the Ministry, situations arise where the risk to national security interests is not posed by the counterparty but rather by its subcontractors. In view of some legal uncertainty, we propose to consider possible amendments to the Law on the Protection of Objects of Importance to Ensuring National Security. The possibility to verify subcontractors would help to better safeguard national security interests, as well as to increase the transparency of the public procurement process," says Ramūnas Dilba, Chancellor of the Ministry of Transport and Communications.
In accordance with the provisions of the Law on the Protection of Objects of Importance to Ensuring National Security, enterprises of importance to ensuring national security must apply to the Commission for Coordination of Protection of Objects of Importance to Ensuring National Security for verification of compliance with national security interests of intended transactions or substantial changes to existing transactions, where the transaction value exceeds 10 % of the enterprise’s annual revenue in the previous financial year, when transactions are concluded by critical information infrastructure managers in accordance with the Law on Public Procurement or the Law on Procurement by Contracting Entities in the Field of Water Management, Energy, Transport or Postal Services, and in other cases specified by law.
The Commission’s verification of the transaction assesses the circumstances with regard to the counterparty, but there are currently no clear provisions on the possibility to verify subcontractors.
According to the Chancellor, the Ministry of Transport and Communications is ready to cooperate in improving the legal framework.
The essential transport infrastructure is classified as an object of importance to ensuring national security, while five state enterprises operating in the field of Transport — Klaipėda State Seaport Authority, Oro navigacija, Inland Waterways Directorate, Lithuanian Airports, Lithuanian Road Administration — and seven public limited companies — Lietuvos geležinkeliai, LTG Infra, Lithuanian Radio and Television Centre, Lithuanian Post, Detonas, Viamatika, Kelių priežiūra — are included in the list of enterprises of importance to ensuring national security.
Last updated: 01-12-2021
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