scholarly journals DIRECTIONS OF MINIMIZATION OF FINANCIAL SCAMS IN THE FIELD OF PUBLIC PROCUREMENT

2020 ◽  
pp. 62-76
Author(s):  
Olga KYRYLENKO ◽  
Victor RUSIN
Keyword(s):  
Public Procurement ◽  
Criminal Liability ◽  
Control Measures ◽  
Financial Fraud ◽  
Public Funds ◽  
The Public ◽  
Fair Competition ◽  
International Obligations ◽  
Procurement Reform ◽  
Procurement System

Introduction. Ukraine is undergoing an extremely important and complex process of forming a modern and effective public procurement system aimed at creating a competitive environment and further developing fair competition in public procurement, as well as ensuring compliance with international obligations by consistently adapting Ukrainian legislation to EU standards. The task of public procurement reform is to significantly reduce financial fraud in this area and achieve savings in public funds. The purpose of the article is to analyze the process of reforming the public procurement in Ukraine, focusing on the latest changes, substantiation of proposals for ways to minimize financial fraud in the field of public procurement. Results. The main milestones of formation and improvement of the public procurement system in Ukraine are considered. Emphasis is placed on the features of the current stage, which are to create better conditions for bidders and prevent financial fraud in public procurement, expanding the list of violations and strengthening penalties. Data on the most common types of violations among procurement customers are given. Conclusions. The existing risks of unfair competition in procurement are indicated and the ways of minimizing financial fraud in this area are substantiated. Emphasis is placed on the importance of preventive measures that can be used to detect violations before the conclusion of the contract. In the context of strengthening the effectiveness of control measures, it is proposed to introduce a direct rule of criminal liability for violations in the field of public procurement. The implementation of the proposed measures will help increase the effectiveness of public policy in the field of public procurement, which will ultimately allow for more economical and efficient use of public funds.

scholarly journals Risk-based assessment model of the state and municipal procurement system

2019 ◽  
Vol 110 ◽  
pp. 02090 ◽  
Author(s):  
Elena Karanina ◽  
Ksenia Kartavyh
Keyword(s):  
Public Procurement ◽  
The State ◽  
Assessment Model ◽  
Government Contracts ◽  
Loss Minimization ◽  
Case Scenario ◽  
Public Funds ◽  
The Public ◽  
Funds Management ◽  
Procurement System

Every year, the volumes of funding in the sphere of provision of state and municipal demand increases significantly. Achieving the effectiveness of government contracts is one of the main and “eternal” problems of public funds management. For public procurement to be effective, it is necessary to meet the needs of the relevant actors, i.e. society, the state, and the private sector. In order to make a qualitative forecast of the results of public procurement placement, the development and implementation of measures aimed at improving the public procurement system, it is necessary to assess the current situation of manifestation of risks arising from the procurement of goods, works and services for state and municipal needs. For this purpose, a risk-based model for assessing the system of state and municipal procurement has been developed, which allows disclosing the nature of the risks of the procurement cycle fully and identifying a case scenario for choosing a way to loss minimization.

scholarly journals Practical aspects of assessing the efficiency of the modern system of public procurement in Ukraine

2018 ◽  
Vol 16 (2) ◽  
pp. 353-363 ◽  
Author(s):  
Bohdan Dmytryshyn ◽  
Ruslana Zhovnovach ◽  
Oleksandr Levchenko ◽  
Yurii Malakhovskyi ◽  
Viktoriya Gonchar
Keyword(s):  
Public Sector ◽  
High Efficiency ◽  
Public Procurement ◽  
Logistics System ◽  
Public Funds ◽  
The Public ◽  
Electronic Procurement ◽  
Before And After ◽  
The Individual ◽  
Procurement System

The issue of reforming the institute of state (public) procurement is one of the key directions of the modernization of the administrative sector of our state. Increasing the efficiency of this institute should be recognized as one of the conditions for ensuring stable economic growth. In this regard, issues relating to the assessment of the efficiency of the use of public funds are of particular interest. The indicators of the efficiency of the activity of the public procurement sector in Ukraine in the context of the introduction of the “ProZorro” electronic procurement system are calculated and analyzed. The existing works of the individual scientists in the direction of developing indicators of the efficiency that can be used to evaluate the results of the operation of the procurement logistics system in the public sector in Ukraine are generalized. As a result, approaches have been identified that can be used to determine the effectiveness of the participation of customers, private sector representatives and the system of electronic public procurement in general. On the basis of retrospective data of past years and the first half of the current year, a number of estimates of absolute and relative savings, as well as indicators of the effectiveness of the open bidding in the public sector of Ukraine have been identified. The dynamics of these indicators before and after the introduction of the “ProZorro” electronic procurement system was analyzed. The analysis shows that the first results of the functioning of the “ProZorro” system demonstrate the existence of negative trend of competition and reduction in the amount of savings in public funds. Ensuring high efficiency and competitiveness, integrity and transparency of the procurement process are the main tasks of the Ukrainian government in the field of public procurement. The authors argue that the introduction of the “ProZorro” system can help to solve them successfully, and the application of the analytics module enables to calculate the savings from the use of this system.

Public Procurement Reform in Georgia

2017 ◽  
pp. 151-169
Author(s):  
Ana Chania ◽  
Kakha Demetrashvili
Keyword(s):  
Financial Management ◽  
Public Procurement ◽  
Government Procurement ◽  
Motivating Factors ◽  
National Agency ◽  
Electronic Procurement ◽  
Fair Competition ◽  
Procurement Reform ◽  
One Year ◽  
Procurement System

The Georgian public procurement system has undergone significant Public Financial Management reforms over the last few years. The goal of creation, introduction and management of the Georgian Electronic Government Procurement (Ge-GP) system was delegated upon the State Procurement Agency, which succeeded in ensuring the development of the software for the Ge-GP system under the assistance of the National Agency of Public Registry. The Ge-GP system was created within less than one year. From the first of December, 2010 all the paper-based tenders were abolished and electronic procurement has become the single platform. Through the introduction of electronic procurement platform, the Georgian procurement system has become considerably more transparent and nondiscriminatory, encouraging free and fair competition and minimizing the risk of corruption. Experience of the Georgian e-Procurement System could be one of the motivating factors for the countries working towards public procurement reform.

Electronification of the Public Procurement System

2017 ◽  
pp. 267-277
Author(s):  
Sergey Tsygankov ◽  
Ekaterina Gasanova
Keyword(s):  
Comparative Analysis ◽  
Public Procurement ◽  
The Public ◽  
Goods And Services ◽  
Contractual Relationship ◽  
New Type ◽  
Rapid Transition ◽  
Procurement Reform ◽  
The Government ◽  
Procurement System

This chapter analyzes the reform of public procurement systems in Russia and Ukraine in the context of electronization, as well as a comparative analysis of the effectiveness of such reforms. The goal is to determine the prospects of expanding the scope of e-procurement based on the analysis of the implementation of the reform of public procurement systems effects in Russia and Ukraine. Public procurement is a fundamental component of social and economic policy of any state, by means of this mechanism the government has the ability to create and influence the industry for future changes in production structures, increase efficiency and more rapid transition to an innovative new type of economy. Procurers are dependent on funds that provide their functioning and providing services to the population. Provision of works, goods and services to such customers is carried out by means of public procurement market, which, enhances the efficiency and transparency of spending money through a contractual relationship satisfying the needs of the state. The share of public procurement (including procurement of state-owned companies) is more over 25% of Russia's GDP, while in Ukraine - more than 7%. That's why it is possible to make a comparative analysis of public procurement reform in Russia and the Ukraine, whose legal approach is quite close (Tsygankov & Syropyatov, 2014).

scholarly journals Integration of the evaluation institute's instruments into the procedures for justifying the initial (maximum) price of the contract in the procurement activities

2018 ◽  
pp. 70-75
Author(s):  
A. A. Bakulina ◽  
R. L. Rovbel
Keyword(s):  
Public Procurement ◽  
Government Procurement ◽  
Control Measures ◽  
The Public ◽  
Economic Support ◽  
Maximum Price ◽  
Control Procedures ◽  
Qualitative Effect ◽  
Procurement System ◽  
And Control

Analysis of the legal and economic support of the public procurement system and the functions of control and monitoring procedures in the modern model of public procurement in the Russian Federation is an important issue in the region of competition. The main innovations and weaknesses in the regulations and results of control procedures at the planning, placement, evaluation and control stages were identified. Conclusions and recommendations on improving the effectiveness of the public procurement control system in Russia are developed through the integration of modern valuation tools and the inclusion of control measures in the process, the formation of experts' conclusions regarding the justification and confirmation of the cost characteristics of the contract in government procurement and procurement of state corporations. The specifics of the institutionalization of control processes in the mechanism of public procurement are considered.The theoretical and practical principles of improving the system of control over public procurement in Russia are studied. The approach to the formation of proposals on additional regulation of control procedures in the contract system is formulated with the aim of providing a qualitative effect on procurement processes.

scholarly journals Improving the Operation of Management Mechanisms in the Implementation of the State Regulation Measures in the Sphere of Public Procurement

2021 ◽  
Vol 1 (516) ◽  
pp. 77-83
Author(s):  
O. M. Sidorenko ◽  
Keyword(s):  
Public Procurement ◽  
State Regulation ◽  
The State ◽  
Control Measures ◽  
Financial Control ◽  
Governance Mechanisms ◽  
The Public ◽  
State Governance ◽  
Procurement System ◽  
The Impact

The article is concerned with considering the current trends in improving the State regulation of the public procurement system in Ukraine. The author defines that one of the key elements of ensuring an adequate level of the State regulation of the public procurement system in our country is the effective organization of the State-based financial control in this sphere. The basis for ensuring the latter is the smooth operation of the relevant State governance mechanisms. The research is aimed at disclosing modern aspects of the State regulation of the public procurement system by implementing the State-based financial control measures, allocating existing problematic issues and developing a model for assessment of efficiency of the measures that will be implemented in the course of its improvement, taking into account the peculiarities of the sphere of public procurement in Ukraine. When writing this article, a direct relationship between the level of efficiency of the State-based financial control in the sphere of public procurement and the level of efficiency of the State regulation of this sphere is determined. It is specified that the key management mechanisms used in the implementation of the State-based financial control in the sphere of public procurement are the organizational, informational and legal ones. Precisely on their condition directly depends the efficiency of the State-based financial control in this sphere. It is determined that each of the above-mentioned the State governance mechanisms has a number of complex, interrelated problematic aspects that impede the maximum level of efficiency of the State-based financial control in the sphere of public procurement. In order to neutralize them, the author proposes to use an automate model for assessing the efficiency of eliminating the shortcomings of the major management mechanisms used in the implementation of the State-based financial control measures in the sphere of public procurement. The presented model allows tracing the impact of relevant measures over time for both the short and long term, is adapted to the economic and socio-political realities of Ukraine, takes into account most of the economic and social risks in the sphere under research.

scholarly journals Public Finance Expenditure And Awarding Work To External Contractors - Case Of Slovenia

2011 ◽  
Vol 27 (1) ◽  
Author(s):  
Stanka Setnikar-Cankar ◽  
Janko Seljak ◽  
Veronika Petkovšek
Keyword(s):  
Public Finance ◽  
Local Government ◽  
Private Sector ◽  
Public Procurement ◽  
Public Law ◽  
Legal Basis ◽  
Public Funds ◽  
The Public ◽  
Procurement System ◽  
Selection Of

The research project “Awarding Work to External Contractors” studied the practice of implementing public contracts in a significant selection of Slovenian local government bodies. Public procurement has become a permanent accompaniment to the business of central and local government and other public law persons with the private sector, and now goes beyond Slovenia’s borders. The public procurement system aims at dynamism, with the possibility of a rapid response to the needs of those using public funds. The principles of public procurement and its legal basis mean the system is rigid and complex, by its nature.

scholarly journals The impact of public procurement system on the development of competition in the economy in the light of empirical research

2017 ◽  
Vol 8 (1) ◽  
pp. 37 ◽  
Author(s):  
Arkadiusz Borowiec
Keyword(s):  
Public Procurement ◽  
Value Added ◽  
Point Of View ◽  
Access To Information ◽  
Economic Point ◽  
The Public ◽  
Fair Competition ◽  
Purposeful Sampling ◽  
Procurement System ◽  
The Impact

Research background: The purpose of the public procurement system in the market economy should be to ensure that the public sector entities conduct purchases which are optimal from the economic point of view, as well as to prevent favoring or discrimination of entities participating in public tenders. The Public Procurement Act mentions fair competition as one of the fundamental principles. Both contractors and contracting entities are subject to this principle. In practice, however, it is very often violated in connection with a number of phenomena resulting from imperfections of the aforementioned system. Purpose of the article: The purpose of this article is to identify the most important solutions to support the development of competition in the economy through the public procurement system, as well as to examine the obstacles and risks carried by the system itself. Another purpose is to present further action proposals based on research — actions affecting the development of competition and at the same time improving the efficiency of tenders. Methods: The article is based on the analysis of literature and on a questionnaire. The survey was conducted electronically (CAWI). The questionnaire was sent to 300 entities required to apply the provisions of the Public Procurement Law throughout the country. Another method involved a direct route (PAPI) and 155 entities participating in public tenders as contractors. Purposeful sampling was implemented to ensure reliable and expert replies. The study was carried out in the first half of 2016. Findings and Value added: The results indicate the most important solutions supporting the development of competition. They include the following: facilitating access to information about orders, improving the efficiency of state authorities in detecting collusive tendering, reducing the possibility of using the potential of third parties, and increasing the availability of data on tender results. The solutions presented in this article are evolutionary rather than revolutionary, and point primarily to the ability to streamline existing procedures and regulations and not to replace them with new ones. They should also help to improve the functioning of public procurement system in Poland, which is of great importance for the development of competition in domestic economy.

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.

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