Commercial sanctions tribunal set up: Companies breaching regulations risk two-year blacklist

Legal notice published today allows for the blacklisting of companies in breach of public procurement regulations or employment legislation

Prime Minister Joseph Muscat
Prime Minister Joseph Muscat

Companies found in breach of public procurement regulations or employment legislation may face blacklisting for up to two years, Prime Minister Joseph Muscat announced today.

Following the publication of a legal notice, a commercial sanctions tribunal was set up in a bid to strengthen the fight against precarious employment, starting with companies operating public tenders and contracts.

“Companies found in breach of public procurement regulations and employment legislation will not only see their contracts terminated but would not be able to take part in other contracts for up to two years,” he said.

Addressing a press conference at Auberge de Castille, Muscat said anyone persisting in precarious employment conditions can be blacklisted for between six months and two years.

“We want to send a strong signal against precarious employment,” he said, adding that his government had reinforced the fight against such practices.

He reiterated that such poor conditions were being adopted “by an extremely small minority”. Muscat said the government was forking out more money to help those workers employed in sectors such as security, cleaning and clerical work receive a just salary.

The government was forking out close to €5 million a year to adjust wage anomalies in the health sector.

Muscat said the government’s main challenge when awarding contracts was to ensure quality.

The press conference was also addressed by Finance Minister Edward Scicluna, Social Dialogue Minister Helena Dalli, and principal permanent secretary Mario Cutajar.