Armenia restricts relatives of officials from participating in public procurement

Armenia will bar companies affiliated with relatives of public officials from participating in government procurement, the government announced following January 22’s approval of a draft amendment to the Public Procurement Law.

The legislation, developed based on European experience, aims to prevent favouritism and conflicts of interest in public procurement and introduces a three-tiered restriction system, Caliber.Az reports via foreign media.

The first tier targets companies whose founders are linked to the highest state leadership, including the president, prime minister, parliament speaker, deputy prime ministers, and republican officials overseeing procurement, such as the finance minister and their deputy. These companies will be completely barred from government procurement.

The second tier applies to companies affiliated with sectoral officials — ministers and their deputies, the attorney general and deputies, heads of investigative bodies, and local government leaders. Such companies will be prohibited from participating in tenders conducted by the respective agencies and their subordinate non-commercial organisations, including educational institutions.

The third tier covers companies connected to leaders and board members of government-independent bodies, including the Central Bank, Public Services Regulatory Commission, Competition and Consumer Rights Commission, and the Ombudsman’s office. Restrictions for these companies will apply only within the procurement activities of the specific agencies.

By Jeyhun Aghazada