site.btaFines Fail to Prevent Procurement Irregularities

Fines Fail to Prevent Procurement Irregularities

Sofia, October 31 (BTA) - Addressing a forum on countering procurement mismanagement on Monday, Deputy Prime Minister Tomislav Donchev said that fines fail to discourage contractors from awarding new procurement tenders in violation of the rules. The forum is organized by the Centre for the Study of Democracy.

Donchev said that the problem stems from failure to observe the legislation, adding that in order to end corrupt practices, electronic procurement will be introduced. According to Donchev, another efficient measure to control procurement is civil society which react quickly to irregularities.

He urged the experts to put forward proposals and for more serious and efficient sanctions against violators and repeat violators. There are cases when every third or fourth tender is fraught with irregularities and this is not by accident. Oversight bodies identify several serious violations each year. Despite sanctions, the same contractor continues to proceed in the same way. According to Donchev, one of the possibilities is after these irregularities have been identified to reduce the budget of the institution.

The Deputy Prime Minister said that procurement irregularities skew the market, the business conditions and business logic.

Donchev said that some 5,000 contractors and 22,000 service providers share 7 billion leva each year. This is a substantial share of the economy but it is not true that Bulgaria's economy is totally dependent on public funding, said Donchev.