Ruilers didn’t stop proclaiming last year that the state has no money, and we have to tighten our belts even more… But after the end of 2012 many interesting facts came to light as to who, how and what spent last year. It turns out that the Government and municipalities lived quite lavishly from 2010 to 2011. Expenses incurred for works, supplies and services were approximately 6.2 billion levs, reaching actually the pre-crisis levels. For comparison – in 2011 the awarded public procurement contracts came to a total of 5.8 billion levs, while a year earlier – they were only 4 billion. At the same time the increasing number of detected irregularities in the procedures carried out meant that more public money sank into someone’s black boxes.
Most funds – nearly 3 billion levs, the government and local authorities spent on construction. Despite evidence of continued decline in this sector state supported it in 2011 with 2.45 billion levs, and in 2012 and with a sum by 20 percent larger. In 2010 when the contracts were signed for the construction of Trakia and Maritsa highways in this segment went 1.43 billion levs, or twice less than last year. It is exactly the infrastructure projects that created the impressive figure of the overall expenditures. While there the growth is visible, in other major segments there is almost no change. For example, the supply of fuel, airline tickets, office supplies, computer equipment, etc. in 2012 those in power spent 2.3 billion levs. A year earlier, on these items the Government gave a little more money – 2.35 billion levs. And in 2010 the amount was 1.8 billion levs. The same situation can be observed in services, which includes cleaning, translation, legal representation, audits, phone calls, etc. These needs cost the administration’s budget last year a total of 924 million levs last year, while in 2011 the sum was 991 million, and in 2010 – 834 million levs.
Of course, the sums spent through such auctions cannot be taken as a sign of economic revival. The reason for the increase is largely in the European funds, the effect of which was actually visible to the general public only last year with the release of the underground sections of the subway line in Sofia. Thanks to funds from the operational programmes, the state and local authorities fill in serious gaps in their budgets and thus are able to spend more money on new projects. So it is at least in theory. But in practice the situation is slightly different. In most cases, mayors and ministers continue to delay payment of executed contracts, which poses serious challenges before businessed. According to the latest data from the Financial Ministry, the total outstanding obligations of institutions came to 286.5 million levs – or almost 111 million levs of the government and 175.6 million levs of municipalities. Minister Simeon Dyankov boasted that this debt has been reduced to 135 million levs, but we would better wait for the official newsletter of the Ministry to confirm the amount before we trust any statements completely. And by then we should delve into the problem of how transparently the government money fill private pockets.
Put directly – this happens as non-transparently as the law allows. From a means of fighting corruption public procurement procedures turned into the already major legal way to drain the treasury. Pre-adjusted wins of contracts, discriminatory requirements, annexes for price appreciation, lack of transparency … These are just some of the techniques for the right spending of millions by the government.
Center for National Collaboration of the Institute for Legal Analysis and Research recently said that an examination of 104 audit reports carried out by the Supreme Audit Office and 390 controls of the Agency for State Financial Inspection for contracts of the last four years regarding the conduct of public procurement found that the prevalence of violations in competitions continues to grow. In 5,500 audited procedures totaling 5 billion levs in over 60% of cases there were administrative violations detected. Between 70 and 85 percent were the faults in the conduct of municipal auctions, most often related to an attempt to manipulate the process itself.
Interestingly, the errors found by the Public Financial Inspection experienced steady growth. From 724 in 2009 and 807 in 2010, they reached 821 in 2011. The results for 2012 have not yet been announced, but there is no reason to expect a change in this trend. Moreover, the allocated money this time were significantly higher, i.e. and temptations and opportunities for abuse t were bigger – too.
The BANKER
