Collusion practices in public procurement process for education system

In the public procurement process for the education system of Chisinau municipality, namely for purchasing alimentation services, a clear division in the market shares between the main players, which are almost exclusively public companies, is witnessed. The analysis of procurement cases shows that these companies prepare their bids with particular simple errors so as to be disqualified. As a result, the competition between them is coordinated and simulated. Such a conclusion was reached by experts of the independent think tank “Expert-Grup”, who compiled an assessment report on the public procurement in education in 2012-2016, IPN reports.

As regards the purchase of food, even if the identified level of concentration is lower than in the case of purchases of works, collusion elements were detected in the public procurement process at the Buiucani Education Division. The sending of participation invitation to recently registered companies that later won a part of the contracts is one of the determined corruption risks.

While analyzing the procurement of repair works, there was identified a group of ten companies with particular ties between them (common founders or legal address), which won a large part of the repair contracts. They took part together in the procurement rounds where the simulation of competition between them is evident (submission of fictitious bids, conceding of the won contract to the related company, etc.). It was also established that a number of groups of companies ensured coordination between them and thus openly divided the market, the risk of collusion in this regard being a major one.

As a solution for ensuring transparency in public procurement, the experts recommend to adopt a systemic and consistent approach to the issue, not only at local level, but also at national money, to modernize and restructure the information systems existing in the field, to use the public procurement analysis instruments based on risk indicators and to reform the monitoring process.

Attending the report launch, the head of the Chisinau General Division of Education, Youth and Sport Tatiana-Nagnibeda-Tverdohleb said the public procurement area is a complex one and the Division cannot cope by itself. To improve the situation in the field, more players should be involved from alimentation, social assistance and other areas. Particular bodies or special divisions should deal with procurement and repair works separately from the Division, while the Division will ensure the education process. The Division now has too many responsibilities and cannot handle all the problems.

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