One of the laws crumbling the public procurement system repealed
The repeal of the law on line infrastructure[1], which opened up a huge space for discretionary decision-making and had the potential for corruption, is good news after years of crumbling public procurement systems. However, it is essential to emphasize that by deleting this law, only one of the channels for contracting the most valuable jobs without a tender is abolished, while the possibility of directly negotiating jobs under the auspices of interstate agreements remains.
The Government submitted to the Parliament a proposal for a law on the termination of the law on line infrastructure, with the explanation that the decision to repeal this law was made due to the objections of the European Commission that the provisions of the law are not in accordance with the legal acquis of the European Union, especially in part related to public procurement and the selection of a "strategic partner".
The Government and MPs knew about these objections even three years ago when the law was adopted. In January 2020, Transparency Serbia indicated the harmful consequences that its adoption would have on the public procurement system.[2]
This law provided the opportunity for the Government to, "in case of urgency and threat to the realization of a project of particular importance for the Republic of Serbia", decide that the rules of public procurement are not applied to the project or certain phases and activities of the projects at all, but "a special procedure for the selection of a strategic partner". The law provided that criteria for selecting such a strategic partner would be prescribed for each new project, thus leaving the Government with the possibility to adapt those criteria to the "desired" contractor. This significantly increased discretion and, at the same time, significantly reduced competition and transparency in relation to the general system of public procurement.
Worse, these rules were applied to the most valuable projects because public-private partnerships worth more than 50 million euros and other projects, by special decision of the Government, were designated as projects of "special importance". We do not have data on the total value of the projects implemented "with the help" of this law. It is not stated in the explanation of the proposed law, nor are these projects included in the annual reports on contracted procurement in the Republic of Serbia. According to the data from the regulation database, the decrees for the selection of a strategic partner were passed in connection with the construction of bypasses around Valjevo, Svilajnac and Kragujevac, the construction of the road from Kragujevac to Mrčajevci and the modernization of the railway from Subotica to the Hungarian border. Although repealing this law is undoubtedly a good thing, there is still a possibility of avoiding the application of the rules of the Law on Public Procurement through the conclusion of interstate agreements or through the adoption of special laws for individual projects (as was the case with "Belgrade on Water" ). The danger of this happening is all the greater because the repeal of the special law is justified solely by the fact that it is contrary to EU requirements and not due to the realization that it is wrong to collapse the anti-corruption rules for contracting and for the most valuable jobs.
Although repealing this law is undoubtedly a good thing, there is still a possibility of avoiding the application of the rules of the Law on Public Procurement through the conclusion of interstate agreements or the adoption of special laws for individual projects (as was the case with "Belgrade Waterfront"). The danger of this happening is all the more significant since the repeal of the special law is solely justified because it is contrary to EU requirements and not due to the realization that it is wrong to crumble the anti-corruption rules for contracting and that for the most valuable jobs.
[1] Full name: Law on Special Procedures for the Implementation of the Project of Construction and Reconstruction of Line Infrastructure Structures of Particular Importance to the Republic of Serbia
[2] https://www.transparentnost.org.rs/en/ts-and-media/press-isues/11192-special-law-discharges-most-valuable-public-procurement
News
EPS illegally withholds information
EPS AD (Electric Power Company of Serbia), joint stock company unlawfully withholds essential information from the public about its work and the possible disposing of the assets of great value. Transparency Serbia, since 26 May 2023, has been trying to verify with the Electric Power Company of Serbia the allegations…
... detaljnije ...On amendments to the Law on Prevention of Corruption
The draft amendments to the Law on the Prevention of Corruption[1], presented for public discussion, respond to the GRECO's recommendations for Serbia[2] to a limited extent. On the other hand, it does not contain measures to reduce the scope of the "official campaign" and to increase the capacity of control…
... detaljnije ...The new draft law on the management of state-owned enterprises still needs amendments
The new proposal of the Law on the Management of Public Enterprises Owned by the Republic of Serbia is better than the previously withdrawn one. Still, it also needs to be amended, primarily in the area related to preventing misuse of public resources during the election campaign, transitional provisions and…
... detaljnije ...Corrupt risks of free conversion not taken into account
Amendments to the Law on Planning and Construction carry a high corruption risk because the state is giving up potential public revenues in favour of individual companies and, at the same time, threatens legal certainty and equality before the law. The amendments provide for the free conversion of the "right of…
... detaljnije ...What needs to be fixed in the proposal of the law on the management of state enterprises
Transparency Serbia sent the Government of Serbia, the Ministry of Economy and the Agency for the Prevention of Corruption a detailed analysis of corruption risks and other shortcomings in the draft law on managing business companies owned by the Republic of Serbia (SOE). The proposal for a law on companies owned…
... detaljnije ...Directors of SOE outside the reach of anti-corruption regulations
The directors of the largest state-owned companies (SOE), which manage assets worth tens of billions of euros, will not have the obligations, restrictions or control provided for public officials in the Law on Prevention of Corruption if the deputies adopt the proposed Law on the Management of Companies Owned by…
... detaljnije ...One of the laws crumbling the public procurement system repealed
The repeal of the law on line infrastructure[1], which opened up a huge space for discretionary decision-making and had the potential for corruption, is good news after years of crumbling public procurement systems. However, it is essential to emphasize that by deleting this law, only one of the channels for…
... detaljnije ...Change the selection method for independent bodies' managers
The legal rules leave too much room for political parties to influence the election of heads of independent bodies, Transparency Serbia emphasises. Although the majority of MPs decide the election - which is inevitable - the parties also have the sole or decisive say in the candidacy phase. At today's session…
... detaljnije ...Harmful and unexplained amendments to the Statute of ”JP Elektroprivreda Srbije”
Amendments to the articles of founding act and the Statute of ”JP Elektroprivreda Srbije” will have very harmful consequences on the implementation of anti-corruption laws in the largest Serbian public company, Transparency Serbia warns. In addition, the key reasons for changes are not explained and the legal basis is disputed. The…
... detaljnije ...Prosecutor's Office should increase the transparency of its work and investigate all abuses in EPS
The Higher Public Prosecutor's Office (HPPO) in Belgrade, in response to a request for access to information sent by Transparency Serbia, confirmed[1] that there is no evidence that prosecutor Bojana Savović requested a transfer from the Special Department for the Fight against Corruption. At the same time, HPPO did not submit…
... detaljnije ...
On what bases will the deputies elect the director of the Agency for the Prevention of Corruption
Transparency Serbia sent the Parliament of Serbia an initiative to invite candidates for the director of the Agency for the Prevention of Corruption to the session The law does not provide for the obligation to represent candidates on parliamentary committees or at the plenum. Deputies were provided only job resumes of…
... detaljnije ...Amendments to improve judicial laws
Transparency Serbia calls on the National Assembly to reduce the corruption risks in the set of judicial laws by adopting the amendments submitted by the parliamentarians on the proposal of the TS. Transparency Serbia has submitted proposals for specific amendments to all parliamentary groups in the Assembly, which aim to improve…
... detaljnije ...Presentation of CPI 2022: Serbia fell below the hundredth place on the TI Corruption Perceptions Index world list
Serbia, with the Corruption Perception Index (CPI) of 36 fell by five places on the list - to the 101st position in the most significant global ranking of countries according to the perception of corruption in the public sector – CPI 2022. In the previous two years, Serbia had a CPI…
... detaljnije ...The appointment of the Agency's director is delayed; on what basis will MPs decide?
The programs of the three candidates for the director of the Agency for the Prevention of Corruption, among whom the National Assembly will choose, do not provide clear answers to all essential questions about the future work of this body. The procedure envisaged by the law does not imply the…
... detaljnije ...Government should be obliged to solve problems in the field of the fight against corruption and access to information
Transparency Serbia calls upon the Committee for Justice, State Administration and Local Self-Government to determine conclusions at today's session (Monday, 26.12.2022, from 2:30 p.m.) that would oblige the Government of Serbia to solve the problems pointed out in the annual reports of the Agency for the Prevention of Corruption and…
... detaljnije ...The Coalition expresses its concern about the growing non-transparency of institutions
On the occasion of marking the International Day of Access to Information and the Day of the Public's Right to Know, 28 September, the Coalition for Freedom of Access to Information of Public Importance states that the authorities in Serbia are increasingly non-transparent in their work. The right to access information…
... detaljnije ...A decade of violations of the Law on Public Enterprises
The Law on Public Enterprises (PE), adopted precisely ten years ago, did not bring the promised professionalisation of management but became a symbol of open mockery of the rule of Law. Out of 34 companies owned by the Republic of Serbia, obliged by the Law to elect directors in a competition…
... detaljnije ...Fight against transparency and competition instead of the fight against corruption
The International Anti-Corruption Day, December 9, found Serbia in stagnation or regression in almost all areas of importance for the fight against corruption, while among the work priorities of the new Government, there is no mention of anti-corruption plans. One could even say that the fight against transparency and competition, the…
... detaljnije ...The budget shows the consequences of the disastrous EPS management
Serbia's budget for 2023 is insufficiently transparent in the part that refers to the costs incurred due to the poor performance of public companies, primarily the Electric Power Company of Serbia (EPS), and citizens are still without the opportunity to influence priority investments. In its assessment of the budget proposal, the…
... detaljnije ...Law on ministries – explanation without explanation
With this year's amendments to the Law on Ministries, the bad tradition was not betrayed: the organisation of the executive power in Serbia is changed without an explanation of how it will affect the performance of the state administration. Understandably, this encourages speculation that the real reason for those changes…
... detaljnije ...
The Government illegally appointed acting officials, and the court has not been resolving the lawsuit for declaration of nullity
More than three-quarters of the decisions of the Government of Serbia in 2020 on the appointment of acting officials in the state administration were illegal. In 30% of cases, the Government violated not only the Law on Civil Servants provisions but also the laws of physics, determining that officials would…
... detaljnije ...ODIHR Final Report on the elections in Serbia - Serious problems related to the abuse of public resources and campaign…
Transparency Serbia indicates that the ODIHR Observation Mission, in its Final Report on the April elections, confirmed the TS findings and warnings during the last procedure of amending the electoral legislation and monitoring the election campaign. The final report, published only in English on the ODIHR website, contains comprehensive findings…
... detaljnije ...Illogical and flawed reports on election campaign expenses
More than two billion dinars were spent for the presidential and parliamentary elections campaign, of and only 6.5% came from contributions and donations. Transparency Serbia analyses individual financial submitted reports and noticed numerous illogicalities and deficiencies. More than one billion dinars, i.e. approximately half of the total costs of the campaign…
... detaljnije ...Decision on "national frequencies" without evaluation of mandatory criteria
The decision of the REM Council on the allocation of "national frequencies"[1] is disputed due to the non-application of one of the mandatory legal criteria - "respect for regulations and ethical media standards", but also because of how the Law on Electronic Media and the REM Rulebook govern the decision-making…
... detaljnije ...How will the budget money be distributed for the regular work of the parties, and what do the reports on…
The announcement of the results of the parliamentary elections, three months after they were completed in the vast majority of polling stations, will significantly change the parties' financial position. In the first half of 2022, about 691 million dinars from the Serbian budget were already distributed to parties based on…
... detaljnije ...Financing of the campaign for the presidential elections
First Analysis Reports Official reports on the financing of the campaign for the presidential elections confirm the findings of the apparent dominance of the candidates of the ruling party in relation to all others, which are a consequence of the legal rules on the distribution of funds from the budget for campaign…
... detaljnije ...Fifth Round of GRECO Evaluation: Important recommendations and chance to fulfil them this time
Transparency Serbia assesses that the fifth round of the GRECO evaluation contains several significant recommendations, the fulfilment of which could fundamentally improve the legal framework for the fight against corruption. At the same time, the new parliamentary convocation and the new Government of Serbia will have the opportunity to approach…
... detaljnije ...Unjustified delay in the preparation of the law
Transparency Serbia pointed out today that the ministries have not organized a public debate on any draft law since February. However, there are already significant delays in fulfilling obligations from strategic documents, including the Action Plan for Chapter 23 and the Media Strategy. The "technical government" can therefore only be seen…
... detaljnije ...Budget transparency in Serbia at the level of the global average
Serbia has made moderate progress and is in 59th place out of 120 countries in the international Open Budget Index (OBI) survey with 46 points out of a possible 100, which ranks it among countries with "limited budget transparency". An improvement of six points compared to the previous survey (from 2019)…
... detaljnije ...LTI 2022: Novi Pazar, Sombor and Sokobanja – Transparency Leaders
The most transparent local governments in 2022 are Novi Pazar, Sombor and Sokobanja, according to this year's survey of the Local Transparency Index (LTI 2022), which Transparency Serbia presented at today's press conference. The average transparency index of cities and municipalities in Serbia in 2022 is 49 points - one point…
... detaljnije ...
- 1
- 2
- 3
