Govt’s Company Doesn’t Have to Follow Govt’s Rules

The Manx Development Corporation is not required to follow the Isle of Man Financial Regulations or Procurement Policy.

Documents released under FoI show that the taxpayer owned “arms-length” company does not need to fulfil the government’s requirements for a managed tendering process.

Nor does it have to do ongoing contract reporting for Government funded and managed projects.

The documents show that this is due to the tendering process being “both time consuming and labour intensive”.

Manx Development Corporation

The Manx Development Corporation (MDC) was, at its launch, supposed to develop government owned brownfield sites, though it says its scope is “much broader and will respond to island-wide needs within a context of sustainable development”.

Its purpose was to “realise economic, social and environmental benefits through enabling full utilisation of government owned land and property assets”.

The MDC’s sole shareholder is the Isle of Man Government’s Treasury, and the taxpayer has propped it up by £5million.

Since then, MDC has bought up numerous privately owned homes and buildings on Westmoreland Road to build its controversial Westmoreland Village.

Follow’s it’s Own Rules

Even though it’s owned by taxpayers, MDC is not bound by the island’s Financial Regulations, nor does it have to follow government’s procurement policy through tendering.

The MDC’s Procurement Policy states that due to a tender process being “both time consuming and labour intensive”, “tendering should be used only where there is an operational need to do so or where the board requires it from a governance perspective”.

MDC is also not obliged to carry out a public invite for Expressions of Interest.

Shop Local?

The company’s procurement policy reads: “MDC will use best endeavours to include Manx companies in all ITQ/Ts but there will be occasions when the island does not have any local service providers, making an off-island selection inevitable”.

As for shopping local? MDC is bound to a commitment for best value and sustainable procurement; whether that be shopping local or from further afield.

The policy states that “in most cases, require MDC to seek quotes from both on and off- island companies”.

Where a local company meets all criteria and is less than 20% higher than its off-island equivalent, MDC may exercise a ‘local premium’.

Use of Gov Services

This state owned company, that doesn’t have to follow government rules, does however get to use shared services from the Isle of Man Government Attorney General’s Chambers.

It also has a shared services arrangement with the Department for Enterprise, as well as being able to call upon the Department of Infrastructure’s services and advice.

You can read the Financial and Procurement Policies below: