Almost 69 million spent outside tenders last year: Institute Alternative warns that direct procurement continues to grow

Public policy researcher Dragana Jaćimović pointed out that direct procurements of up to 8.000 euros enable direct conclusion of contracts, which is the least transparent procedure, as it allows the deal to be concluded with whoever the client wants.

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Dragana Jaćimović, Photo: Institute Alternative
Dragana Jaćimović, Photo: Institute Alternative
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

In Montenegro, significant money is still allocated for simple procurements contracted directly, almost 68,8 million euros last year, which is 4,2 million euros more than in 2023. These procurements are individually worth up to 8.000 euros, are not carried out through the electronic public procurement system (CeJN) and are the least transparent - because the deal can be concluded with whoever you want.

This was told to "Vijesti", commenting on the Government's report on public procurement for last year, by a public policy researcher at the NGO "Institute Alternative". Dragana Jaćimović.

She also pointed out that spending on public procurement last year was the highest in the last 18 years.

According to the report, the total value of procurement in Montenegro last year was 982,06 million euros, of which 847.582.273 were public procurements and 134.481.562 euros were electricity and coal procurements. This report showed that 118,76 million euros more was spent on total procurements last year than the year before, while 172,38 million euros more was spent on public procurements than in 2023. Public procurements are carried out by state authorities through CeJN.

Jaćimović emphasized that the growth in the total value of procurement in recent years has also been influenced by the increased state treasury.

"What we read negatively from the report is that the amount for simple procurements contracted directly is still high, and that it has increased by nearly 4,2 million compared to last year. It is important to emphasize that these are procurements of up to 8.000 euros, which are not carried out through CeJN. Direct procurements enable the direct conclusion of invoices/contracts, which is the least transparent procedure, because it allows the deal to be concluded with whoever the client wants. Through its research to date, the Alternative Institute has identified numerous irregularities in the use of this mechanism, which were later confirmed by the State Audit Institution," said Jaćimović.

She also pointed out that the amount of simple direct procurements of 68,8 million euros is significantly higher than the 47,8 million euros contracted for the same ones carried out via the electronic system. She states that the most problematic thing about simple procurements is that the law does not recognize misdemeanor penalties when irregularities are identified during their implementation, and that she will monitor how direct spending will move during this year - because the Ministry of Finance introduced restrictions on direct contracts at the end of last year on an annual basis.

She added that the goal is to reduce their share in the total value of procurement, and that this is being done according to the suggestions of the European Commission.

Asked about the European Union (EU) threshold, above which Montenegro concluded public procurement worth 381,07 million euros, according to the report, Jaćimović said that it determines the value for works, services and goods and that it depends on the subject of the procurement itself, above which the rules prescribed by EU directives should apply. She stressed that this part of the report shows statistical data on procurement and that it serves mainly for the purposes of reporting on public procurement, in the way it is done in EU countries.

"What should also be analyzed from the report is why procurements were not carried out through innovation partnerships, competitive dialogue and competitive procedure with negotiations. These are new procedures that were introduced in 2020, and the data from the report shows that no procurements in the last four years have been carried out through the aforementioned procedures. The reasons why these procedures were not used should be found, and the promotion and benefits of such procedures for bidders should be strengthened," she stressed.

Jaćimović referred to competitiveness and added that according to the data, three bids were received per procedure, but it can be seen that 39 percent or 330 million euros of total public procurement was contracted based on only one submitted bid. She emphasized that in 2023, this percentage was 33 percent.

It should be analyzed why procurements were not carried out through innovation partnerships, competitive dialogue and competitive procedure with negotiations. These are new procedures from 2020, and data shows that no procurement in the last four years has been carried out through the aforementioned procedures, Jaćimović pointed out.

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