The cabinet approved in its weekly meeting Wednesday new modifications in the bids and tenders law that will give ministers and heads of governmental authorities and bodies more power in direct assignment operations. "The law amendment included an increase in the value of direct attribution by the ministers, from EGP 10m to 20m in construction. This is an authority of direct assignment for the ministers and with higher amounts to the cabinet," Minister of Finance Hany kadry Dimian said in statements published by the Middle East News Agency (MENA). He said the amendments also doubled the maximum value for direct assignments for heads of governmental authorities or bodies, from EGP 1m to EGP 5m in contracting. The local tender limit was also raised from EGP 400,000 to EGP 1m, allowing the lease of movables and the possibility of a two-stage tender procedure, according to Dimian. Contracting was banned with contractors, who do not have insurance for their workers. The cabinet's statement said the modification of the bids and tenders law 89 for 1998 is in accordance with the constitution's provisions that require the economic system to commit to transparency and governance standards. It also supports competition, encourages investment, regulates market's mechanisms, and prevents monopolistic practices. The amendment targets to tighten controls by achieving economic efficiency to obtain real value for what is being paid from public funds to avoid unjustified expenses and to control and rationalise public expenditure. It also aims to fight corruption and to reach optimal utilisation of grants and loans to ease the burden on the state budget.
