Public Procurement Reform in Georgia

Author(s):  
Ana Chania ◽  
Kakha Demetrashvili

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.

2020 ◽  
pp. 62-76
Author(s):  
Olga KYRYLENKO ◽  
Victor RUSIN

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.


2016 ◽  
Vol 3 (2) ◽  
pp. 146
Author(s):  
Galih Wibowo

Paradigm of administrative change the procedures method of government procurement, particularly the open auction method through a pattern of electronic procurement (e-proc). However, the development of e-proc has not been applied to the direct procurement system to purchase the stuf of governmental or procurement goods. Direct Procurement system adheres to a slightly different mechanism with the concept of an open auction. This difference implies the actor behavior in both methods is different too. Studies comparing the behavior of the both actors / organizer on the electronic procurement (public tender) and non-electronic (direct procurement) was conducted to determine the level of performance of government procurement. The factors and impact each of the procurement methods have been studied for understanding advantages and disadvantages of each method, so that it can formulate better procurement models.


2018 ◽  
Vol 2 (2) ◽  
pp. 39-48
Author(s):  
Azem Duraku

Abstract Treaty of Rome of 1957 and following treaties on amending the Treaty of Rome contain a number of basic principles on which the EU is founded. Among these principles, the most important ones related to the public procurement are: prevention of discrimination based on nationality, free movement of goods; right and freedom of establishment of a business; the right to provide services. Spending of public money in Kosovo pursuant to the Law on Procurement is found on the following principles: economization and efficiency; equal treatment and non-discrimination; transparency; value for money. The average of open procedure application in EU countries is 73% based on notices, whereas in Kosovo is 82.80% based on notices. In the end of 2014, Kosovo commenced the development of electronic procurement platform. This project takes place within the Public Sector Modernization Project. The importance of the electronic procurement is stated in the statement of European Commission: “Modernization and opening of procurement markets across borders - including through the electronic procurement expansion - are crucial for the competition in Europe and creating new opportunities for businesses in EU”. A good procurement system in Kosovo will have an impact on elimination of negative phenomena (corruption and bad management) in the management of public expenditures from spending agencies, as well as an impact on increase of budget saving.


2018 ◽  
Vol 16 (2) ◽  
pp. 353-363 ◽  
Author(s):  
Bohdan Dmytryshyn ◽  
Ruslana Zhovnovach ◽  
Oleksandr Levchenko ◽  
Yurii Malakhovskyi ◽  
Viktoriya Gonchar

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.


Author(s):  
Azamat Akramov ◽  
◽  
Rano Isakovna Mardanova ◽  

The experience of Western countries with a developed market infrastructure shows that the public procurement system naturally became an integral part of the sphere of internal commodity exchange of certain types of products and services and one of the mechanisms for maintaining competition and a liberal way of doing business. The objective basis for the existence and progressive development of the public procurement system in the national economy of many countries is the fact that in the process of fulfilling their target functions, individual government departments and organizational structures of any of them are forced to face the problem of material and technical support both for the implementation of state and local programs, and for the implementation of their current activities. As a rule, it is solved by purchasing the necessary material and intangible resources, goods, works and services through purchases, called state, in the process of specially organized competitive bidding. The purpose of this article is to show the experience of developed countries in the implementation of public procurement.


Author(s):  
Nataliya ZDYRKO

The independent legislative agency of Ukraine according to the international standards ISSAI in private carrying out of the state audit (including the published purchases) is made. It is established that international practice has identified three components of public audit: performance audit, financial audit and compliance audit. The necessity of standardization of the state audit of public procurements through legislative fixing of audit of conformity is proved. The main objects of compliance audit are proposed: the activities of the customer (participant), public resources and the activities of responsible government agencies. Recommended main directions and procedures for compliance audit for each object and by stages of the life cycle of procurement items. Features of the audit of compliance of redistribution by the customer of various receipts for public procurement are considered. Features of audit procedures for different types of public procurement are identified. The recommended procedure and algorithm for auditing the correctness of determining the subject of procurement from the customer. The main mistakes and violations of the participants, which take place during the audit of compliance with public procurement, have been identified. The peculiarities of compliance audit at the stage of public procurement planning, pre-contractual and contractual relations in the electronic procurement system, as well as at the stage of use of procurement items are highlighted. It was emphasized that the responsible body should regulate issues related to the functioning of the electronic information system, platforms and web portal in the field of public procurement. The key elements of the Public Procurement Compliance Audit Standard (purpose, objectives, subject, objects, subjects, stages, methods, principles) are proposed.


Author(s):  
Leslie Harper ◽  
Daniel Sanchez

The chapter explores the topic of electronic government procurement (e-GP) in Latin America and the Caribbean (LAC), the factors that affected the development of such systems, how they evolved differently across the region and the challenges going forward. The information included in this chapter will provide insight on how e-GP implementation has been a key element in public procurement reform in LAC as well as important lessons from the region.


Author(s):  
Rajesh Kumar Shakya

This chapter focuses on the green public procurement initiatives taken by the countries in the East Africa. The East African Community (EAC) Head of States signed the East African Monetary Protocol Union (EMPU) protocol on November 30, 2013. One of the key ingredients in having a sustainable monetary union is to harmonize public financial management systems amongst the EAC Partner States and the EAMU protocol has referred the provision of harmonization of public procurement policies. The first stakeholder' workshop on the harmonization of public financial management standards in line with the EAC Monetary Union Protocol held during March 14-17, 2014 in Nairobi, Kenya identified green public procurement (GPP) strategy as one of the key policy areas requiring development and harmonization across the member states. This initiative should also be viewed in the context of the Member States' Public Procurement Reform Initiatives, which contains a suite of measures in relation to public procurement. Reform of the public procurement function is, and remains, driven by the need to obtain maximum value for public money in procuring works, supplies, and services.


Author(s):  
Rugayah Hashim ◽  
Mohd Anuar Mazuki

Local authorities or municipalities have different organizational structure and goals and as such implementing a customized information systems project requires a separate evaluation that would fit their needs. In the case of an electronic procurement (e-procurement) system, the implementation of this project at the central government level is not without challenges. Similarly, at the local government level, issues prevailed. Thus, this chapter highlights the issues encountered by twelve local authorities in the state of Selangor, Malaysia. The issues are broken down into four themes, namely, political, economic, social, and technological. It is important to note that local authorities fall within the jurisdiction of the state government; thus, more issues are abound particularly with regards to political interference. Nonetheless, the ultimate goal of having an online public procurement system is a win-win situation for both the local authority concerned and the vendors or suppliers. Hence, identifying the issues and learning from them will limit project failures or extended scheduling. Inherently, the implications of lessons learned from others who have implemented an online public procurement system will provide valuable guidelines for other lagging municipalities, yet at the same time, the late implementers will benefit more as they are able to avoid the pitfalls made by their counterparts that embarked earlier. In fact, the late-comers tend to achieve better success rate and report a significant return of investment.


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