scholarly journals International and European experience of avoiding corruption risks during public procurement

2018 ◽  
Vol 6 (10) ◽  
pp. 62-73
Author(s):  
O. V. Altsyvanovych ◽  
Y. Y. Tsymbalenko
Keyword(s):  
Public Procurement ◽  
Integrated Approach ◽  
Competitive Bidding ◽  
Short Term ◽  
The Public ◽  
Regulatory Documents ◽  
Foreign Countries ◽  
European Experience ◽  
Procurement Procedure ◽  
Procurement System

The international and European experience of avoiding corruption risks in public procurement has been investigated. An analysis of the functioning of the public procurement system in various countries led to the conclusion that the authorized authorities use various mechanisms to ensure the effectiveness of its organization. This applies, in particular, to the requirements for competitive bidding, disclosure of information by their participants, establishing the responsibility of officials for compliance with the procedures and rules established by law, etc.Along with the regulatory documents governing the procurement procedure in foreign countries directly, the important role is played by declarations and standards relating to the direct regulation of the procedures and principles of public finance FC.The main approaches used in international practice to avoid corruption risks in the implementation of public procurement are identified, namely: psychological methods, technical methods, regulation of processes, repressive means.It was concluded that, limited to individual branches of influence or the methods indicated above, only a short-term effect can be obtained, because after a certain period of time, the structure and mechanism for releasing illegal income will change, moving into industries not covered by instruments of control and opposition. As a result, the total corruption losses will return to their previous size or even exceed them. Consequently, it is possible to get tangible results of indicators of reducing corruption only by applying an integrated approach, that is, a balanced use of all methods of counteraction at each stage of the public procurement process.

PROBLEMS OF ESTABLISHING A PUBLIC PROCUREMENT SYSTEM IN THE KYRGYZ REPUBLIC

2020 ◽  
Vol 20 (1) ◽  
pp. 188-196
Author(s):  
Aygul Abdukarimova ◽  
Keyword(s):  
Public Procurement ◽  
Competitive Bidding ◽  
Kyrgyz Republic ◽  
Procurement Management ◽  
The Public ◽  
History Of ◽  
Procurement Procedure ◽  
Universal Definition ◽  
Definition Of ◽  
Procurement System

The article explores the history of the formation and development of the public procurement system in the Kyrgyz Republic, provides a universal definition of the concept of “public procurement”. The main problems of implementing a public procurement system at the level of regulatory legal acts are considered. The analysis of the first Law on Public Procurement was carried out, which did not take into account international experience in public procurement management. Timely introduction of the competitive bidding system in the public procurement procedure is justified. An analysis of the volume of public procurement for a certain period of time was also conducted to assess the development of the public procurement system in the Kyrgyz Republic. Based on the study, recommendations are given to improve e-procurement management.

scholarly journals Risks in the Drug Procurement System: Current Issues

2021 ◽  
Vol 9 (SPE3) ◽  
Author(s):  
Natalia Alekseevna PRODANOVA ◽  
Usman Salmanovich ZHAUBATYROV ◽  
Elena Ivanovna ZATSARINNAYA ◽  
Vitaly V. GONCHAROV ◽  
Nadezda Sergeevna ELIZAROVA ◽  
...  
Keyword(s):  
Medical Devices ◽  
Public Procurement ◽  
Pharmaceutical Market ◽  
Healthcare Institution ◽  
Drug Procurement ◽  
The Public ◽  
Regulatory Documents ◽  
Sufficient Detail ◽  
Procurement System

The public procurement segment is one of the components of the pharmaceutical market in Russia. Procurement of medicines and medical devices is the top sector of public procurement, both in terms of their number and the amount of contracts concluded. The procedure for concluding state contracts itself is spelled out in sufficient detail in the regulatory documents, but, despite this, risks may arise when concluding a state contract both for a potential applicant for a state order and for a state customer. The purpose of the study is to determine the possible risks when concluding a state contract of a healthcare institution for medicines and medical devices and ways to reduce them.

scholarly journals MANAGING PUBLIC PROCUREMENT APPEALS

2019 ◽  
Vol 4 (4) ◽  
pp. 79-85
Author(s):  
Anna SLOBODIANYK ◽  
Nadiya REZNIK
Keyword(s):  
Civil Rights ◽  
Process Analysis ◽  
Public Procurement ◽  
Individual Case ◽  
The Public ◽  
Procurement Contract ◽  
Procurement Procedure ◽  
The Moment ◽  
The Right ◽  
Procurement System

Introduction. The main purpose of the public procurement system is determined by the need to ensure efficient use of budget funds in the development of competition, transparency and openness of the procurement process organization. The purpose of the research is to conduct the process analysis of contesting the public procurement procedure by tenderers. Results. The authors argue that evaluating the dispute resolution effectiveness between the complainant and the customer on the basis of the balance of rights, interests, and objectives of the procurement law is, in practice, an extremely difficult issue that must be resolved in each individual case. The specifics of determining the procurement subject by the customer are highlighted in such a way as to preserve the right to choose the product that suits him best and not to buy the cheapest existing product on the market, such as paper according to certain parameters of density and level of linen. But if the customer has already defined in the tender documentation technical and the qualitative characteristics of the procurement subject, he has no right to further deviate from them when selecting the winner. It is proved that the appeal procedure is created specifically to ensure a quick and professional settlement of conflicts between the participant or potential participant of the procurement procedure and the customer regarding the actions of the customer, which violate the right of such participant in the procurement procedure and the conclusion of the contract with the customer. Attention is drawn to the appeal terms of the tender documentation claim being challenged and the possible addition of justification for the need to amend the conditions of the tender documentation with the opportunity to give additional evidence. Conclusions. From the moment of the procurement contract conclusion between the state customer and the successful tenderer, classic private legal relations emerge, and consequently, after the conclusion of the procurement contract for public funds, which is the final stage of the procurement procedures, civil rights and obligations arise between the parties, and consequently civil rights and obligations arise to appeal the procurement procedure. Keywords: public procurement; body of appeal; tender documentation; the subject of the appeal; legislation on public procurement.

scholarly journals Progres of the Public Procurement System in Albania and in the European Union

2016 ◽  
Vol 1 (2) ◽  
pp. 72
Author(s):  
Emalita Dobra
Keyword(s):  
European Union ◽  
Public Administration ◽  
Public Procurement ◽  
Public Works ◽  
The European Union ◽  
The Public ◽  
Public Contracts ◽  
Procurement Procedure ◽  
Proper Estimation ◽  
Procurement System

A proper estimation of the value of the public contracts is of major importance of the contracting authority. First, value of contracts govers the regime of rules under which the proceedings will be conducted. Second the decision of the contracting authority concerning the application of specific procurement procedure depends whether the value of contract is below or above specific threshold. For multi year contracts or contracts with renewal option, the contracting Authority must provide clauses for the revision of prices in accordance with published official inflation. In case of goods the contracts through renting or leasing of these, the estimated value of the public contract shall be based on the monthly rent or fee multiplied by the number of months the contract will last. The contracting Authority is responsible for comparing the above mentioned elements with a cost analyses of the goods, services or works. European Union rules provided in Article 9 of the directive 2004/18/EC of the European Parliament and of the council of 31 March 2004 on the coordination of procedures for the award of public works, supply and services and in contain also more detailed rules concerning methods of estimation of contract value which should be applied in specific case. The priciple of the transparency of public procurement requires that all potential contractors have the same chances to compete for contracts being offeres by public administration. (; public contracts, procurement, goods, proceedings contracting Authority, etc. )

scholarly journals Digitalisation of public procurement: The case study of Ukraine

2019 ◽  
Vol 53 (3) ◽  
pp. 61
Author(s):  
Nataliya Synyutka ◽  
Oksana Kurylo ◽  
Mariya Bondarchuk
Keyword(s):  
Public Procurement ◽  
Synthesis Method ◽  
Electronic System ◽  
Theoretical Background ◽  
The Public ◽  
Electronic Procurement ◽  
Public Consumption ◽  
Procurement Procedure ◽  
Procurement System ◽  
The Impact

<p><strong>Theoretical background</strong>: There is an ongoing global acceleration of automation and digitalisation in financial processes, which points to significant changes in public spending policies. After an analysis of several scientific studies, fundamental approaches have been elaborated to understand public consumption and the system of state purchases. The basic hypothesis for this research was to study the possible impact of the electronic procurement market ProZorro on state purchases in Ukraine. Possible directions are: increasing competitiveness, optimising state expenditures and saving the budget funds of public services based on innovative digital technology.</p><p><strong>Purpose of the article</strong>: The main goal is to investigate the impact of the electronic public procurement system ProZorro on corruption and bureaucracy in the public sector of Ukraine. The study object is an analysis of the volume and structure of the public procurement market, the number of procedures and participants in a bidding process, and the savings amounts in ProZorro’s public purchases during the study period in Ukraine.</p><p><strong>Research methods</strong>: The following methods were used during the research of the Ukrainian electronic procurement system: dialectical method; analysis and synthesis method – for a comparison of certain types of public procurement; subthreshold and suprathreshold statistical methods – for analysing the dynamics of indicators of the domestic system of public procurement during the period under research for a comparison of the indicators of public consumption of certain ministries and departments, different regions and territorial entities; structural and logical analysis – for generalising the theoretical and methodological principles of building a public consumption system in Ukraine. The main source of data was the data and analytical base of the ProZorro electronic public procurement system.</p><p><strong>Main findings</strong>: Effects of the innovative digital paradigm on the transparency and efficiency of public procurement are determined. Considerable attention is paid to the implementation of the electronic public procurement system ProZorro in Ukraine. The expediency is substantiated for its implementation in the national practice of budget expenditures, and the principles and procedures of implementation are analysed. The practice and dynamics of the public procurement market in Ukraine are summarised. The conclusions of the advantages of electronic system are provided, including transparency and impartiality, stimulation of competition and non-discrimination of bidding participants, reduction of corruption and the effect of reducing the savings of budget funds. Potential risks, threats and disadvantages of the ProZorro system in Ukraine are highlighted. Among them are: a high proportion of non-competitive procedures; possible latent conflict regarding the participants’ interests; unreasonable time spent on individual procedures; the justification of the procurement procedure to one participant due to a dubious “urgent need”; unreasonable application of the procurement procedure to one participant due to the falsification of conditions or the division of the procurement subject; the existence of discriminatory requirements in the documentation of competitive bidding; and a lack of efficiency in the complaints handling mechanism.</p>

scholarly journals Socially Dangerous Consequences Of Criminal Offenses In The Field Of Public Procurement

2021 ◽  
pp. 120-129
Author(s):  
A.M. Cheredarchuk
Keyword(s):  
Law Enforcement ◽  
Tax Evasion ◽  
Power Distribution ◽  
Public Procurement ◽  
Security Threat ◽  
Law Enforcement Agencies ◽  
The Public ◽  
Criminal Offenses ◽  
Procurement Procedure ◽  
Procurement System

In the article the author analyzes the national legislation, scientific research and the results of law enforcement activities of law enforcement agencies in the field of public procurement. It has been established that the opacity and inefficiency of mechanisms for controlling the public procurement process leads to the use of corruption schemes to embezzle budget funds, legalize and misappropriate them by unscrupulous officials and, as a consequence, to «shadow» the national economy. In the current conditions of the country’s development, corruption is perhaps the most negative consequence of criminal acts in the field of public procurement. Corruption in the public procurement system, as in any other area, is associated with the exercise of power, distribution or redistribution of material resources or funds, a phenomenon that is not new or even national. Another clear example of the consequences of public procurement crime is the threat of unfair competition. Among the abuses committed by public procurement participants, the greatest degree of security threat is conspiracy of participants. A conspiracy is an agreement between two or more participants in a procurement procedure aimed at setting the price of a competitive bidding offer or a price offer at artificial or non-competitive levels with or without the knowledge of the customer. The main danger of fictitious entrepreneurship is property damage to legal entities and individuals, the state, which, in turn, is expressed in concealing the facts of prohibited activities, illegal conversion of non-cash into cash, creating preconditions for tax evasion and other illegal goals, promoting legalization ( money laundering) of funds obtained by criminal means, etc.

Researching the public procurement system: An analysis of winning organizations

2020 ◽  
Vol 16 (5) ◽  
pp. 860-884
Author(s):  
V.G. Kogdenko ◽  
A.A. Sanzharov
Keyword(s):  
Public Procurement ◽  
The Public ◽  
Debt Capital ◽  
Scientific Principles ◽  
General Scientific ◽  
Marketing Information ◽  
High Level ◽  
Return On Sales ◽  
Procurement System ◽  
Social Components

Subject. The article deals with the analysis of suppliers in the public procurement system based on reasonable prequalification parameters. Objectives. The aim is to test the hypothesis about strong reputation characteristics of the winners in the public procurement system and develop a methodology for assessing the reputation of suppliers for prequalification purposes. Methods. We employ general scientific principles and methods of research, like abstraction, generalization of approaches used by domestic and foreign authors for prequalification and assessment of reputation of public procurement participants. Results. To test the hypothesis, we calculated four groups of indicators on corporate, financial, market, and social components of reputation. The methodology was tested on the data obtained from SPARK-Interfax and SPARK-Marketing information resources. Conclusions. The study revealed that not all reputational characteristics of public procurement winners can be regarded as high level. In terms of the corporate component, it is the low level of share capital, indicating the mistrust on the part of owners and their reluctance to invest in the business, and the low percentage of non-current assets. In terms of the market component, it is a low sales growth rate, as well as low return on sales. As to the financial component, it is a low capitalization of winners, low share of long-term debt capital and low credit limit. With respect to the social component, it is a below-average tax burden.

scholarly journals The Budget as a Basis for Ecological Management of Urbanization Projects. Case Study in Seville, Spain

2021 ◽  
Vol 13 (7) ◽  
pp. 4078
Author(s):  
María Rocío Ruiz-Pérez ◽  
María Desirée Alba-Rodríguez ◽  
Cristina Rivero-Camacho ◽  
Jaime Solís-Guzmán ◽  
Madelyn Marrero
Keyword(s):  
Public Procurement ◽  
Embodied Energy ◽  
Short Term ◽  
Sewer System ◽  
Communication Services ◽  
Concrete Aggregates ◽  
The Public ◽  
Basic Services ◽  
Total Impact

Urbanization projects, understood as those supplying basic services for cities, such as drinking water, sewers, communication services, power, and lighting, are normally short-term extremely scattered actions, and it can be difficult to track their environmental impact. The present article’s main contribution is to employ the project budgets of public urbanization work to provide an instrument for environmental improvement, thereby helping public procurement, including sustainability criteria. Two urban projects in Seville, Spain are studied: the first substitutes existing services, and the second also includes gardens and playgrounds in the street margins. The methodology finds the construction elements that must be controlled in each project from the perspective of three indicators: carbon, water footprints, and embodied energy. The main impacts found are due to only four construction units: concrete, aggregates, asphalt, and ceramic pipes for the sewer system, that represent 70% or more of the total impact in all indicators studied. The public developer can focus procurement on those few elements in order to exert a lower impact and to significantly reduce the environmental burden of urbanization projects.

Audit Assessment of the Effectiveness of Public Procurement Procedures

2021 ◽  
Vol 12 (3) ◽  
pp. s085-s107
Author(s):  
Iryna Drozd ◽  
Mariia Pysmenna ◽  
Nataliia Pohribna ◽  
Nataliya Zdyrko ◽  
Anna Kulish
Keyword(s):  
Cost Effectiveness ◽  
Public Procurement ◽  
Risk Indicator ◽  
Individual Values ◽  
State Budget ◽  
The Public ◽  
Efficiency Cost ◽  
Procurement Procedure ◽  
Using Data ◽  
Risk Parameters

The article seeks describing the benefits and challenges faced by auditors in assessing the effectiveness of public procurement procedures in terms of applying the methodology for calculating efficiency, economy and effectiveness, taking into account the risks of procurement in e-auctions. Quantitative risk parameters are calculated using data of probabilistic indicators of procurement risk assessment according to the ratio of the number of relevant procedures (sub-threshold and above-threshold) to the total number of procurement procedures. Statistical valuation methods are used for the cost risk assessments and calculation of the aggregate risk indicator of public procurement. The calculations are performed using the data of the open e-procurement system ProZorro for all announced procurements in 2018-2019. We analyzed the methods, indicators and the extent to which the study of the public procurement effectiveness via bibliographic and case studies is performed. As a result, the majority of methods cover four components of assessing the public procurement efficiency - targeted efficiency, cost-effectiveness, organizational efficiency, efficiency of budget expenditures for public procurement. This does not provide an assessment of the automated systems’ impact on the procurement procedures results and on possible savings due to the use of certain procurement procedures. To comprehensively assess the procurement efficiency in e-bidding, the authors propose considering four key risks: the risk of cancellation of the procurement procedure, the risk that the procurement procedure will not take place, the risk of appealing the procurement, the risk of disqualification. As a result of risks calculations under the sub-threshold and above-threshold procurement, individual values of risks and their aggregate indicator are determined. This will adjust the scope of audit procedures to verify individual procurements and identify weaknesses in the procurement management system. We believe that the methodology of auditing the procurement effectiveness, taking into account the quantitative and qualitative parameters of procurement risks, will be a useful audit tool to determine the effectiveness of the use of public funds under individual procurements and identify areas of cost-effectiveness for the state budget funds.

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