The Financial Times quotes a Hewlett Packard (HP) official as saying that HP won a SR65 million ($17.3 million) contract with the Saudi Ministry of Education. Under the terms of the contract, the company would furnish elementary, intermediate and secondary schools all over the Kingdom with computers and computer programs. The official said that winning the contract was in itself a miracle at a time when the official Saudi policy calls for no company to be awarded any government contract worth more SR1 million except by public tender.
The head of the information technology department at the ministry told an Arabic newspaper that HP enjoyed an excellent record of performance with the ministry and had the expertise to meet the needs of the Kingdom’s educational institutions.
The questions are: On what basis did HP win the SR65 million contract? How did this happen without bids being open to the public? Are the ministry’s records empty of creditable performance by another company which might also be capable of meeting the educational requirements?
The questions are justified since there is a clear directive from the crown prince which states that no firm should be given priority in awarding a contract if the value of the contract is in excess of SR1 million. The directive stressed there should be no exceptions or preferential treatment whatsoever.
We haven’t read in any newspaper that the ministry asked bidders to come forward with proposals to furnish the Kingdom’s schools with computers. What we actually read was a small news report that HP had won the contract. Does this mean that other companies in the Kingdom lack the ability to compete in these kinds of projects?
The minister of education is among the best men serving this country. We must also say in fairness that HP may well be the most qualified to meet the ministry’s requirements. But the bottom line here is not our opinions but seeing government projects being put out to open competition in which all companies who consider themselves capable can participate.
The way this matter has been handled can only add to our confusion, leaving many questions unanswered. This happens at a time when we have already given assurances to our future partners in the World Trade Organization (WTO) that we will be more open and transparent in our business dealings. The time when we are a member of the WTO is fast approaching and any unjustifiable delay through mistaken actions could cost us dearly indeed.
— Arab News Local Press 14 October 2003
