The Ministry of the Interior (MOI) recently issued an important interpretation regarding joint bids in large-scale government procurement projects, clarifying that all members of a successful joint bidding consortium are prohibited from making political donations during the contract performance period, regardless of whether they are named signatories to the procurement contract. 

Under Article 25 of the Government Procurement Act, procuring entities may permit multiple suppliers to submit joint bids depending on the nature of the procurement. Such joint bidders are required to jointly execute the contract upon award and bear joint and several liability for its performance. In addition, Article 272 of the Civil Code provides that where multiple obligors are jointly and severally liable for the same obligation, each obligor is responsible for the full performance of the debt. Accordingly, all members of a joint bidding consortium assume full contractual responsibility toward the procuring entity, irrespective of whether only a lead contractor formally executes the contract in practice. 

Furthermore, Article 7, Paragraph 1, Subparagraph 2 of the Political Donations Act prohibits any contractor that has entered into a large-scale procurement contract with a government agency, and is within the contract performance period, from making political donations. The legislative purpose of this restriction is to prevent undue influence on governmental decision-making through political contributions. 

In its official letter dated February 4, 2026, the MOI further clarified that all members of a successful joint bidding consortium fall within the scope of this prohibition. This is because each member bears joint and several liability for contract performance and may potentially assume the entirety of the contractual obligations. 

This interpretation has significant practical implications. Companies participating in government procurement through joint ventures or consortium arrangements should be aware that even non-signatory members may still be subject to political donation restrictions. It is therefore advisable for businesses to carefully assess compliance risks and establish robust internal controls prior to engaging in joint bidding activities, in order to mitigate potential legal exposure. 

Professional Team

© Copyright – Stellex Law Firm | designed by Morcept