Government: Amendments to the Law for Effective Prevention of Corruption in Procurement Procedures

The Government of Montenegro adopted today the Draft Law on Amendments to the Law on the Prevention of Corruption, which aims to improve the anti-corruption framework, integrity framework and rules on conflict of interest in public procurement.

As stated in the Government's statement, the proposed measures allow for a thorough review of existing regulations and policies to ensure effective prevention of corruption in procurement procedures.

"The amendments to the Law aim to improve the work of the Agency for the Prevention of Corruption (APC), eliminate identified shortcomings in current practice, and strengthen the legal framework in order to more effectively prevent and combat corruption," the statement said.

It is added that the changes are aimed at harmonizing with international standards and practices, as well as adapting outdated solutions that case law cannot resolve on its own.

"A special focus of the changes is on increasing transparency, integrity and efficiency in the areas of public procurement and state aid, in accordance with the Reform Agenda of Montenegro for the period 2024-2027 and relevant EU instruments," the statement said.

The Government emphasized that the goal is to strengthen the anti-corruption framework, conflict of interest rules, and control systems in risky areas.

"The planned measures enable more detailed control and reduce the risk of corruption, while strengthening trust in the management of public resources," the statement said.

As stated, an obligation is also being introduced for members of committees in public procurement procedures, privatizations, public-private partnerships and concessions (when the value exceeds 250 thousand euros) to declare their income and assets, as these are areas with an increased risk of corruption.

At today's session, the Proposal for a Law on Amendments to the Law on Construction Products was also adopted, in order to align it with the acquis communautaire of the European Union (EU).

"The discussion highlighted that the current law was already aligned with relevant EU regulations, but amendments to it have been adopted in the meantime, which required additional adaptation of national legislation," the statement said.

The Government has also adopted a Bill on Amendments to the Bar-Boljare Highway Act, which repeals certain provisions of the Act.

As they explained, the provisions stipulating that, in the case where a highway project is implemented on the basis of an interstate agreement and a credit arrangement, based on that agreement, if the loan beneficiary and investor is the state of Montenegro, the contractor pays tax at a rate of 0 percent, as well as being exempt from paying customs duties on construction materials, equipment and facilities intended for the construction of the highway are being repealed.

"The provisions stipulating that foreign citizens employed by contractors are exempt from personal income tax and mandatory social security contributions are also repealed," the statement said.

As announced, the main goals achieved by adopting the proposed act are increasing budget revenues and ensuring more stable financing of public needs, establishing a fairer tax system, because the abolition of privileges ensures an even distribution of the tax burden among all economic entities.

The Government added that the goal of the changes is to preserve fair competition in the market, since tax breaks violate equal business conditions, to harmonize with European standards and practices, since special tax benefits are often treated as a form of illegal state aid, as well as to contribute to the reform agenda in the field of public finances and the fight against the shadow economy, through a transparent and non-discriminatory tax framework.

"The objectives are aligned with the Montenegro EU Accession Programme, Chapter 8 - Competition," the Government emphasized.

The statement states that the session also approved amendments to the Bill on Amendments to the Law on Games of Chance, with the aim of more precisely defining norms and eliminating ambiguities that have arisen in practice.

As it is added, the Government has adopted the Information on the provision, free of charge, of deposited sand from the Bojana River fork to the Football Association of Montenegro, for the purposes of building a football field with hybrid grass turf, in the amount of five thousand cubic meters (m3).

The Information points out that the installation of a hybrid grass surface on football fields also includes the installation of a layer of sand whose characteristics match that extracted from the mouth of the Bojana River.

"Accordingly, for the implementation of planned investments in the adaptation of football fields in order to provide all teams with top-notch conditions for training and playing matches, the Government has approved the provision, free of charge, of five thousand m3 of deposited sand at Ada Bojana," the statement says.

As it is added, the estimated value of the sand in question is 36,38 euros per m3.

At today's session, the Information on the designation of the Electric Power Company of Montenegro Nikšić as the Authorized Body in accordance with the Law on Ratification of the Agreement on Cooperation in the Field of Energy between the Government of Montenegro and the Government of the United Arab Emirates was also adopted.

"The discussion emphasized that for the full implementation of the Law on Ratification of the Agreement, it is necessary to establish a clear institutional mechanism through the designation of an Authorized Body that will take on a key role in the coordination and implementation of activities envisaged by the Agreement," the statement said.

The Government explained that EPCG is a national power company of systemic importance, with a dominant role in electricity production and many years of experience in managing the energy system.

"In the previous period, EPCG has additionally focused its activities on the development of projects in the field of renewable energy sources, including solar and wind power plant projects, as well as hybrid systems with energy storage," the statement said.

As the Government pointed out, the designation of EPCG as the Authorized Body ensures institutional clarity and operational efficiency in the implementation of the Agreement, while simultaneously reducing regulatory and implementation risks.

"Such a solution enables centralized project management, better coordination between relevant state authorities and investors, as well as more efficient use of available resources, thus creating conditions for the timely and successful implementation of planned investments," the statement said.