Over one billion levs sink every year in various corruption schemes in the conduct of public procurement procedures, and this has been officially recognized by the reports of the National Audit Office and the Public Financial Inspection. Of course the losses are much more, the control is very weak, and the volumes of funding – enormous.
As difficult to believe as it can be – the Centre for Prevention and Counteraction of Corruption announced days ago that it had found a cure for malpractices in the conduct of public auctions. After twelve months of brainstorming the specialized unit managed to compose a report entitled Solution model in the field of public procurement. Its application, according to the director of Eleonora Nikolova, would eliminate deficiencies in procurement procedures and most importantly – save one billion levs to the Treasury.
But how could such a miracle happen? We know that the Bulgarian rulers are very sensitive when it comes to procurement and do not like anyone to interfere in their enforcement of the rules of their conduct. This fact manifested itself in all changes in legislation concerning this matter. Recommendations of Brussels and criticism of business and professional organizations remain unheard. This time, the reform proposals are coming from the inside of the power itself, and that is why it is worth to pay more attention to them.
Firstly, the model for the prevention and detection of corruption offered contracts to become fully electronic. The explanation is that this will be a simplification of procedures, and will lead to reducing costs and improving quality. Moreover, thereby creating an opportunity for significant reduction of administrative burdens, facilitating equally business and the state, said Nikolova.
Computerization of the tenders will be through the establishment of six electronic platforms. The first is called E-register and will contain all the data and documents needed for the procedures before the decision to award a contract. Altogether, these functions now performed by the register of the Public Procurement Agency.
The next platform is called E-bidding. It will contain the active software applications for various forms of online bidding, but is mainly suitable for open procedures in the field of services and expert consultancy, as well as in cases where a public authority declares property for sale: unnecessary or obsolete company cars, furniture and equipment. E-bidding can also be used to sell old stock of the state reserve, that are subject to renewal.
The platform e-catalogue is about supply and purchase of standardized machinery, tools, furniture, equipment, etc. And for all processes in the procurement of works, services and supplies that are not suitable for carrying through e-bidding and e-catalogue the platform e-auction is provided.
The other two platforms – E-monitoring and E-audit are an entirely Bulgarian invention. The first will collect, preserve and provide access to all contracts, annexes and protocols of negotiations between state structures and entities. The second is designed to conduct a targeted audit and analysis of infringement and access to it will only be preserved for power structures of audit and inspection activities.
All this sounds good in theory, but is unlikely to be seen in practice. Such innovations are not to the taste of the Bulgarian authorities and the whole activity looks rather like throwing dust in the eyes of people. It suffices to recall what the position of the country was during the debates in the Council of the EU for the introduction of e-procurement within the community. According to the proposal of Brussels the directive in this respect is to take effect next year, and its application is to begin no later than mid-2016. Bulgaria, however, expressed reservations about this two-year transition period. It was too short for the officials from Sofia and insufficient to produce the necessary technical and material base, and for the capacity building of all the entities in the country. In fact, if local leaders really wanted such a change they would have long introduced it through adjustments to the Public Procurement Act. Moreover Bulgarian businesses have repeatedly urged the information to be provided and auctions to take place online. Otherwise, there is no doubt that e-procurement will have clear and precise criteria for classification and special committees, and computer program candidates will be arranged. So the choice of the winner will be impartial and all facts will be subject to public scrutiny.
Another key proposal of the corruption watchdog is to create central services procurement in which to employ specifically trained personnel. They should support the preparation of formal documents and check specifications prior to make the public announcement. The unit will be responsible for the publication of tender documentation. The idea is to solve the problem of multiple violations of the procedures that can be explained with the lack of experts in the administration. But this reform is unlikely to bring anything significant
The BANKER
