Public procurement contracts constitute a large part of the GDP and public expenditure in each country, and as such represent a very sensitive area, vulnerable to fraud and mismanagement possibilities. A poor management of public procurement prevents the development of genuine market competition, creating favourable opportunities for certain  economic operators, and does not achieve the “value for money” by paying a higher price for the services and goods that the retail market, respectively by increasing public spending and negatively affecting the resources or returned investment to taxpayers.

 

The report prepared by the Kosova Democratic Institute (KDI) that analyses the contract of the Central Procurement Agency (CPA) for the fuel supply for 37 institutions, compared with other institutions with individual contracts for the same product, shows there has been savings of the public money.

 

However, Diana Metushi Krasniqi from KDI notes that “centralized contracts minimize competition, and regulatory authorities for supporting enterprises and maintaining competition must engage and develop national strategies to address this phenomenon.”

 

“This study by KDI supersedes the research character to a scientific and comprehensive study. These analysis and reviews should be taken as a message and guidance to Procurement Sector and Government in general, “said Mursal Rraci, from the CPA. Also Safet Hoxha, from the PPRC said that “This report presents a new approach, where KDI through a credible analysis is encouraging examples of good management of public funds. He further added, “We see civil society as a partner to put some order and to save public money, and suggested greater coordination between the CPA and the Inspectorate of MTI to ensure the quality of the fuel, which remains a big concern”.

 

“Despite many efforts and investments by the international community and local government, public procurement remains one of the most discussed sectors in terms of mismanagement and fraud, and as such being addresses in all reports evaluating the progress of Kosovo. However, it is not the reports that bear the cost of these problems; the citizens are those who continue to pay the high cost of the services. The savings from these acquisitions could return on capital or development investment by the Government, and consequently help to improve the living standards for the ordinary people!” says Artan Canhasi from KDI.

 

For more, please read the full report in the following link: http://www.kdi-kosova.org

 

 

This activity is organized within the project “Increasing the efficiency and transparency of public procurement through active monitoring to reduce corruption,” supported by the British Embassy in Kosovo.