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Transparency Index in Public Procurement

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Transparency Index in Public Procurement TRANSPARENCY INDEX IN PUBLIC PROCUREMENT TRANSPARENCY INDEX IN PUBLIC PROCUREMENT FOR MUNICIPALITIES OF KOSOVO FEBRUARY 2016 29 TRANSPARENCY INDEX IN PUBLIC PROCUREMENT 2 TRANSPARENCY INDEX IN PUBLIC PROCUREMENT TRANSPARENCY INDEX IN PUBLIC PROCUREMENT FOR MUNICIPALITIES OF KOSOVO FEBRUARY 2016 3 TRANSPARENCY INDEX IN PUBLIC PROCUREMENT 4 TRANSPARENCY INDEX IN PUBLIC PROCUREMENT COPYRIGHT © 2016. Kosova Democratic Institute (KDI). Kosova Democratic Institute reserves all rights to this report and no part of this publication is subject to reproduction or retransmission in any mechanical or electronic form, including photocopying or storing in retrieval system of materials without the publisher’s prior authorization in writing. The publication may be reproduced or transmitted only for non- commercial purposes. Whosoever intends to use excerpts or documents from this publication is obliged to clearly attribute the source wherever and whenever the excerpts or materials are reproduced. Should you have any comments, criticism or suggestions, you are kindly requested to contact the publisher through any of the following means: Street Address: Street Bajram Kelmendi, no. 45, 10000, Prishtina, Kosovo. Tel.: +381 (0)38 248 038 E-mail: [email protected] Web: www.kdi-kosova.org Publication of this report is made possible with the support of the British Embassy in Pristina. The opinions, findings and recommendations expressed herein are those of KDI and do not necessarily reflect the views of donor. 5 TRANSPARENCY INDEX IN PUBLIC PROCUREMENT TABLE OF CONTENTS INTRODUCTION ................................................................7 METHODOLOGY ................................................................8 ACCESS TO PUBLIC DOCUMENTS .......................................10 BUDGET TRANSPARENCY ..................................................13 TRANSPARENCY IN PROCUREMENT ..................................16 TRANSPARENCY OF AUCTIONS ..........................................21 CONCLUSIONS ..................................................................23 6 TRANSPARENCY INDEX IN PUBLIC PROCUREMENT INTRODUCTION Transparency may be defined as access to timely vention involving bribes received through public information that is easily understandable, and pro- contracts 4. tects the integrity of the process and the interests of all stakeholders involved. However, after many legal In principle, transparent and accountable procurement amendments and institutional promises, spending cycle means that winning companies are the ones pro- public funds through public procurement in Koso- viding the best product, best price and have the best vo remains largely closed to the public and there- plan in order to achieve the best result. fore not accessible by the civil society, media and the public itself. According to reports published by Information should be made available pro-actively, the government authorities for 20141, out of a total comprised of data from earlier decisions up to recent of 1,589 million Euros2 of the general government audits. Assessment of needs, budgets, contract no- budget, 445.2 million Euros 3 were spent through tices, contract award notices, procurement planning, procurement procedures. This amounts to 28% of auctions, etc., should be published pro-actively, and the total budget. Public procurement represents an in early stages for public to be informed on where and opportunity to make a difference or to exercise an how their tax money is being spent. influence on a certain level in the community or a wider circle, and not only on the purchase of goods Spending public funds through public procurement or services, but also on the management of such con- in Kosovo remains largely closed to the public and tracts, legal compliance, fair treatment, transparency therefore not accessible or supervised by civil soci- and accountability. Every Euro that was saved during ety, media and the public itself. Therefore Kosova the public procurement process may be used to im- Democratic Institute (KDI)/Transparency International prove the current conditions in the country or to help Kosova (TIK) was hired to develop this Transparency those in need. Index in Public Procurement. The goal of this Index is to put pressure on institutions to provide a greater According to Cobus de Swardt, Manager Director transparency and a more open governance. Access of Transparency International: “When the products to information on public expenditure through public that citizens ultimately pay for are dangerous, inap- procurement will allow the public get a better sense propriate or costly there will be an inevitable loss on spending their tax money. At the same time greater of public confidence and trust in governments.” transparency prevents irregularities, mismanagement The OECD estimates that corruption at institutional and corruption in these institutions. level absorbs about 20-25 per cent of government procurement budget, and 57 percent of bribery cases, followed by the OECD Anti-Bribery Con- 1 2014 publications were used for comparative purposes, since 2015 publications are being processed by the relevant institutions 2 https://mf.rks-gov.net/sq-al/Buxheti/Buxheti-i-Repub- likes-se-Kosoves/Buxheti-qendrore 3 https://krpp.rks-gov.net/krpp/PageFiles/File/Raportet%20Vjeto- 4 http://www.oecd.org/corruption/oecd-foreign-bribery-report- re/2014/Raporti%20vjetor%202014%20Shqip%20KRPP.pdf 9789264226616-en.htm 7 TRANSPARENCY INDEX IN PUBLIC PROCUREMENT METHODOLOGY Kosova Democratic Institute (KDI), as subsidiary of Transparency International (TI) for Kosovo, has de- PILLAR OF BUDGET veloped a methodology to measure transparency in TRANSPARENCY WILL MEASURE: public procurement for all central and local institutions. This methodology was first implemented in 2014 when 5 Publication of the 2015 budget transparency was first measured in municipalities in documents on the website; various pillars. This Transparency Index includes all municipalities in Kosovo. The Index is based on four 6 Publication of the 2015 procurement (4) main pillars and 17 different indicators as follows: plan on the website; 7 Audit reports on the website; PILLAR OF ACCESS TO PUBLIC 8 Public hearings on their websites and DOCUMENTS WILL MEASURE: their number; 1 Number of requests for access to public documents; 9 Financial reports on the website. 2 Number of denied requests for access to public documents; PILLAR OF PROCUREMENT WILL 3 Number of requests for access to MEASURE; public documents in the field of public 10 Number of tenders published on the procurement;; website of the institution (contract 4 Number of denied requests for access notices); to public documents in the field of public procurement; 11 Number of tenders published on the PPRC website; 12 Number of winners published on the website (contract award notices); 13 Number of winners published on the PPRC website; 8 TRANSPARENCY INDEX IN PUBLIC PROCUREMENT TRANSPARENCY IN AUCTIONS: 14 Notices for public auction advertisement on the website; 15 Notices for public auction advertisement on the PPRC website; 16 Notice of the auction winners on the website; 17 Notice of the auction winners on the PPRC website; As part of this monitoring, KDI will continuously mea- sure the level of disclosure of documents which relate to transparency in public procurement. Data were col- lected in December 2015. Four municipalities in Koso- vo located in the northern part of the country have no functional websites. During the analysis of 2014 5 KDI has also measured the trend of complaints filed to the PRB. At the onset of functioning of institutions, low number of complaints filed to PRB resulted on high level of corruption in in- stitutions. Economic operators were threatened not to file complaints. However, findings of the last measure- ment made in 2014 have shown that the correlation is not applicable. For this reason, this indicator has been removed from the measurements for 2015. However, municipalities located in the northern part of Koso- vo face the same trends as other municipalities in the beginning of their operation and there is a shortage of complaints to the PRB by the economic operators competing for contracts in these municipalities. 5 http://kdi-kosova.org/publikime/42-2014-12-09-indeksi-i-tran- parences-ne-prokurimin-publik-ne-komuna-alb.pdf 9 TRANSPARENCY INDEX IN PUBLIC PROCUREMENT ACCESS TO PUBLIC DOCUMENTS One of the four pillars measured in the Transparency Out of 35 contacted municipalities, 26 have responded Index is access to public documents. The purpose of with information on their activities on implementing the measuring this indicator was not only to see the level of law on access to public documents. respecting the Law on Access to Public Documents, but also to see how much citizens, civil society organizations The main issue with information on access to public doc- or media use this mechanism to seek accountability of uments is the fact that information cannot be verified and municipal institutions. compared with independent sources, because the sole source is municipalities. However they present a good Main focus is on requests for access to public basis for analysis. documents in the field of public procurement; According to information provided by municipalities following the In this regard, there are nine (9) municipalities listed below request from KDI, all municipalities have received 699 that have not responded after the request on the number requests for access to public documents. Out
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