Procurement Risk:
Very High
Score:
23/100
Government Policy
Q57
0/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This sub-indicator is not assigned a score in the GDI. Lebanon requires a public tender for all goods and services above $535. The Public…
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The research found no specific legislation related to corruption risks in defence and security procurement. Furthermore, only those registered and listed can access military…
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No concrete evidence was found that showed defence procurement legislation was thoroughly implemented and followed for all defence procurement contracts (1). However, a source…
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Q58
42/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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As indicated in Q57, Decrees no. 11573 and 11574 from 1968 are the legal decrees that formalize the LAF’s procurement policy, without foreign military’s…
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The defence procurement cycle is disclosed in a very abbreviated format. Only the bidders who applied for the contract are the ones who are…
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Decrees no. 11573 and 11574 from 1968 layout the procedures for each step of the implementation process of the procurement cycle (1), (2), but…
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Q59
25/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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Procurement oversight does exist according to Decree no. 11573. According to Article 36, the LAF’s General Directorate of Administration is responsible for the project…
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It is unclear how effective are the LAF procurement oversight mechanisms since reports related to procurement are not made available (1). According to Decree…
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Procurement oversight mechanisms are entirely non-transparent because they are not publically available (1).
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Lebanon created a 5-year Capabilities Development Plan (CDP), which assesses critical mission areas, capabilities, and professionalization targets linking it to budgeting and future funding…
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In general, the LAF does not purchase weapons, with the promised $3bn aid to the LAF from Saudi being earmarked for weapons purchases. Instead,…
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Capability Gap and Requirements Definition
Q62
50/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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Decree no. 11574 dictates the general conditions and requirements for companies eligible to apply for tender with the LAF (1). Although it does not…
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Contracts and reports are not publically available (1). So, it is unclear to what extent the laws are implemented (1). However, according to sources,…
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Q63
75/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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At the time of the research, Lebanon did not have a national defence strategy (1). Nevertheless, the CDPs (2013-2017 and 2018-2022) are lower-level formal…
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The GDA regularly scrutinizes and oversees procurement requirements and decisions (1). The audit bodies, as mentioned from before, have praised the level of transparency…
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The LAF systematically base all purchases on clearly identified and quantified requirements under the CDP, as mentioned in 63A (1). Most of the LAF’s…
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Tender Solicitation, Assessment and Contract Award
Q64
NEI/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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This indicator has not been assigned a score due to insufficient information or evidence. Awarded contracts are not published, thus it is unclear what…
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The type of competition is usually indicated at the top of the bidding announcement on the website (1). The LAF does not publish the…
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Q65
38/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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Research found neither evidence of specifications and regulations for codes of conduct (that are designed to prevent conflict of interest for procurement or tender…
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The LAF has a comprehensive audit trail in selecting suppliers and designing tender specification (1). It also has an external verification process with the…
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Decree no. 11573 spells out the Tender Committee’s roles during the bidding process some of which are checking the legality of bidders’ documents, ensuring…
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The LAF has a comprehensive audit trail in selecting suppliers and designing tender specifications (1). It also has an external verification process with the…
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Q66
17/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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No specific laws were found that prohibit collusion within the defence sector, where collusion is defined as between an official and a bidder or…
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Decree no. 11574 empowers procurement officials to exclude companies where there is a conviction or reasonable evidence of bribery & corruption-related offences. But the…
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This sub-indicator has been marked Not Applicable, as there is no legislation covering defence procurement that addresses collusion (1).
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There are no specific laws in place that prohibit collusion within the defence sector, where collusion is defined as between an official and a…
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Contract Delivery and In-Service Support
Q67
6/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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Decrees no. 11574 and 11573 outline the sanctions applied as a result of incomplete or inadequate service delivery by the tender (1), (2). However,…
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Contract information including details on sub-contractors, change of beneficial owners, additional costs, such as consultants and companies awarded are not publically available (1).
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Research found no evidence of regularly produced contract monitoring and completion reports, including supplier and subcontractors performance appraisals (1). However, according to Decree no…
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Most contract breaches are dealt with internally since most are due to minor lack of compliance with contract requirements. It also depends on the…
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Q68
NEI/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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In case of dispute, the tender has to present it to the LAF command or responsible administration within 30 days from the moment the…
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This indicator has not been assigned a score due to insufficient information or evidence. According to Decrees no. 11573 and 11574, the complaints mechanisms…
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This indicator has not been assigned a score due to insufficient information or evidence. This sub-indicator has not been scored due to a lack…
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Articles 55 and 60 in Decree no. 11574 (1968) is the legislation and implementation guideline empowering procurement officials to exclude companies and senior company…
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It is unclear if cases of corruption are investigated and prosecuted without undue influence due to the lack of information (1). However, undue political…
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It is unclear if offences result in sanctions since decisions are not publicized (1).
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Offset Contracts
Q70
0/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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There are no formal policies and procedures that outline the reporting and delivery obligations for offset contracts (1). However, Article 29 of Decree no.…
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The government does not publicize the list of contracts (including details of the supplying companies) or copies of the contracts themselves (1).
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There are no published reports conducted by procurement offices on delivery obligations (1). As previously stated, the LAF does not publish any procurement related…
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No evidence for actual offset policies or contracts, additionally no information on their enforcement was found (1).
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Offsets are requirements by governments to foreign selling entities to compensate and return a portion of the money spent directly or indirectly invested (1).…
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Agents / Brokers
Q73
NEI/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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Article 13 of Decree no. 11574 indicates that agents or company representatives are not allowed to represent more than one bidder per bid in…
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This indicator has not been assigned a score due to insufficient information or evidence. It is unclear if sanctions are applied when policies and…
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Financing Package
Q74
25/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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The existence of a financing package and the identity of the provider are normally made public. The majority of arms deals come in the…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. The LAF acquires weapons in the form of donations from foreign countries (1). Thus,…
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This indicator is not assigned a score in the GDI. The LAF’s CDP justified the requirements for developing its capabilities and was presented in…
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This indicator is not assigned a score in the GDI. No incidents were found of domestic political pressures resulting in defence acquisitions (1). Domestic…
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