A few weeks before public attention again turns to the electricity bills and the financial flows of electricity distribution companies, the power distribution operator in western Bulgaria, CEZ, decided quickly to replace part of its fleet with newer cars. Thanks to yet another loophole in the Public Procurement Act CEZ Distribution Bulgaria spent several million levs on 60 cars and trucks without a true competition, tender or other proceedings of the kind between importers and manufacturers of vehicles. In this case there was a negotiation without notice (under Article 103, paragraph 2, item 11), whereby the Czechs directly bought cars from their desired brands.
The reasons for the choice of the scheme in question were explained by Anna Zareva, Director of Supply and Logistics Department in the company. She writes that the company commissioned a market analysis based on technical data of different types, brands, and vehicle classes meeting the requirements of the client. Who exactly carried out the study was not disclosed, but it was stated that it was a certified appraiser who used the approach of comparing similar classes of cars based on their technical parameters, reliability, fuel economy, price of spare parts and servicing, cost of equipment and turnkey warranty maintenance service. However, Zareva noted that part of the fleet of CEZ Distribution Bulgaria consists of brands by Suzuki, Isuzu and Skoda.
So, after the extensive analysis by the anonymous appraiser, the string of events accidentally leads to MG Service Ltd., which represents the first two of the mentioned car brands in the country. It was explained that the company had announced a reduction to customers for purchasing over 25 pieces of pickups Isuzu D-max and over 15 pieces of Suzuki Jim, until November 15. In the first case, the former were sold at 56,315 levs a car or totally the deal must be for at least 1,464,290 levs without VAT. SUVs will cost 27,477 levs a piece, or a total of at least 439,632 levs without VAT. Of course, these are the minimum quantities to be purchased so that a company may enjoy this promotion. However, the specific number of vehicles and the estimated amount of the transaction are confidential. The company says only that CEZ Distribution Bulgaria AD requires replacement of its vehicle fleet, as at present part of the used cars are technically outdated, and their maintenance and servicing lead to significant costs. Given that the technical characteristics and parameters of cars Suzuki Jim and Isuzu D-max are the most advantageous, according to the market analysis prepared in accordance with the needs of the company, and the announced promotional conditions appeared favourable for buying them because as the prices are lower than the market ones for these cars, the contracting authority was interested in buying the new cars for fleet renewal from this company, read the reasons for the purchase.
Similarly was made the choice of automobiles. Their provider is Euratek which is representative of Skoda in Bulgaria. The company, just as MG Service, gives a special discount to customers for purchasing at least 20 automobiles by 15 November, but in this case does not specify models that CEZ Distribution Bulgaria has chosen. In this situation, the cost of vehicles can range from half a million to several million levs.
It should be noted that according to information in the records of the public procurement orders, this is the first case in which CEZ Distribution Bulgaria buys cars directly from importers, albeit without real competition. The practice until now was even more questionable, since the energy distributor used to pay to its parent company, CEZ Bulgaria, for the purchase or lease of motor vehicles. A curious example is renting a Skoda Octavia, which cost CEZ 5.83 levs per hour and 0.25 levs per kilometre. Thus the annual costs reached 50,000 levs, i.e. the value of the car. Even more impressive is the rent of a Moskvich Aleko, for which according to the contract the subsidiary had to pay to its parent company 3.1 levs per hour and 0.21 lev per kilometre. Such schemes in recent years have been used to invoice costs for tens of millions of levs, which respectively have been approved by the State Energy and Water Regulatory Commission and reflected in the price of electricity. This is something that will undoubtedly happen to the current spending of millions.
The BANKER
