One of the laws crumbling the public procurement system repealed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
Presentation of the Local Self-Government Transparency Index - LTI 2024 - The Most Transparent Municipalities and Cities in Serbia
The Embassy of Switzerland in Belgrade - Swiss Agency for Development and Cooperation and Transparency Serbia will present on October 24, 2024 the results of the LTI 2024. TS assessed and ranked the transparency of all 145 municipalities and cities in Serbia based on 95 indicators,. The presentation of the results…
... detaljnije ...PrEUgovor Commentary on the Reform Agenda of Serbia in the "Fundamentals" Area
Coalition prEUgovor regularly monitors the state of affairs and advocates for substantial reforms in Cluster 1 (“Fundamentals”). In its commentary, it shares its impressions of the document - newly adopted Reform Agenda of the Republic of Serbia, in principle and in selected areas it monitors within the Fundamentals. For 21 measures within the section…
... detaljnije ...Missed opportunities for the prevention of corruption within the executive authority and the police
GRECO's assessment that Serbia has fulfilled only one of the 24 recommendations from the fifth round of evaluation in two years calls into question the existence of strategic commitment and will to combat corruption, but also confirms the findings of the TS from the beginning of this year. The lack of…
... detaljnije ...Conference: How to prevent waste of public resources
Transparency Serbia (TS) and the Center for Investigative Journalism of Serbia (CINS) invite you to the conference: How to prevent waste of public resources Belgrade, Tuesday, 9 July 2024, 10.00 – 12.00 Envoy Congress Center, Gospodar Jevremova 47 Agenda: 10.00 – 10.05 Nemanja Nenadić, Program Director, Transparency Serbia 10.05 – 10.10 Milica Šarić, Director…
... detaljnije ...Serbia remains among the countries with limited budget transparency
Serbia ranks 55th out of 125 countries in the Open Budget Index (OBI) with 51 points out of a possible 100, which labels it as the country with "limited budget transparency", according to Transparency Serbia. Progress of five points compared to the previous survey (from 2021) was achieved solely due to…
... detaljnije ...Proposals for the implementation of ODIHR recommendations and improvement of election conditions
Transparency Serbia has used the opportunity to present to representatives of parliamentary parties and the Working Group of the Government of Serbia for Cooperation with ODIHR a number of specific proposals and priorities for improving election conditions, especially regarding the financing of the election campaign and preventing the misuse of…
... detaljnije ...TS submitted proposals to the Assembly for the implementation of recommendations from the ODIHR report
Transparency Serbia submitted to the Serbian Parliament and the Government Working Group for the Improvement of the Electoral Process proposals regarding the implementation of certain recommendations from the Final ODIHR report after the December 2023 elections and unfulfilled recommendations after the previous elections. TS informed the ODIHR Observation Mission, the citizens…
... detaljnije ...Ministry of Interior should publish data on migration of voters that it submitted to Prime Minister
The claim of the Prime Minister in the technical mandate, according to which "everyone can check" in how many cases citizens change their residence, not only does not correspond to the factual situation but is directly opposite to the official answer that Transparency Serbia received from the Ministry of Internal…
... detaljnije ...Corruption prevention in the executive branch - useful GRECO recommendations have not yet been implemented
If Serbia were to implement the recommendations it received in March 2022 from GRECO (Group of Countries for Combating Corruption) – a body established by the Council of Europe – it would significantly improve the mechanisms for combating corruption in the work of the executive. However, very little has been…
... detaljnije ...ODIHR calls for improvement of campaign finance rules and prevention of abuse of public resources "well in advance of the…
In the final Report on the December elections, the ODIHR observation mission confirmed some of the findings of Transparency Serbia's monitoring of the election campaign, and a large number of recommendations refer to unresolved issues of election campaign financing, misuse of public resources and participation of public officials in the…
... detaljnije ...
The costs of the Belgrade local election campaign - what is shown and what is missing
Although there were 14 election lists in the Belgrade local elections, and the deadline for submitting the final financial reports expired six days ago, only nine lists have been published so far. According to the information published on the Agency for the Prevention of Corruption website, the report on the…
... detaljnije ...Procurement for EXPO 2027 - no minimum deadlines and no legal protection
The Government of Serbia adopted a decree which, in accordance with the lex specialis, prescribes how procurement will be carried out and jobs awarded for EXPO 2027. Nemanja Nenadić from Transparency Serbia for N1 says that the differences between the rules prescribed by the Law on Public Procurement and this…
... detaljnije ...Serbia continues to fall on global list of Transparency International's Corruption Perception Index
In Serbia, there is no political will to reduce corruption; the Government bypasses laws on public procurement, passes special laws for multimillion-projects that are important to it, does not adopt an anti-corruption strategy, and is increasingly distant from the rule of law. It was said at the Transparency of Serbia…
... detaljnije ...TS calls on MIA and HPPO to publish additional information on their actions regarding election irregularities
The information presented to the public by the Ministry of Internal Affairs (MIA), the Ministry of State Administration and Local Self-Government (MSALSG), as well as the Higher Public Prosecutor's Office (HPPO) in Belgrade, regarding allegations of illegality in the electoral list and vote buying, are not sufficient to dispel publicly…
... detaljnije ...Alarm over indications of serious election breaches
Transparency International urgently calls on the Serbian authorities to investigate potential abuses of public office and resources by the ruling party during the 17 December elections. It is also crucial to swiftly determine whether vote-buying took place. The prosecution and the Agency for Prevention of Corruption (APC) need to promptly…
... detaljnije ...In the election campaign, blurred line between state and the party - a sharp and valuable report by ODIHR
The observation mission of the ODIHR already in the preliminary Report highlighted not only the shortcomings of legal solutions but also numerous severe violations of the law during the campaign and election day, among which are problems for which Transparency Serbia has been proposing concrete solutions for years. The International Election…
... detaljnije ...Unfulfilled obligations and priorities for the fight against corruption
The International Anti-Corruption Day, 9 December, is a good reason to call on the Parliament and the Government, which will be formed after the upcoming elections, to finally adopt one of the most effective mechanisms for the fight against corruption - the introduction of illegal enrichment, as a criminal offence…
... detaljnije ...EC report – benevolent conclusion on progress and numerous unresolved problems
The European Commission's assessment[1] of Serbia's "limited progress" in the fight against corruption is too benevolent. On the other hand, the EC report is significant, as it points to some of the most important unresolved issues, including direct contracting of procurement for infrastructure projects, illegal acting state in public administration…
... detaljnije ...The work of temporary bodies during the election campaign must be transparent
Transparency Serbia has indicated to the presidents and members of temporary working bodies in 65 cities and municipalities that they have an obligation to ensure the publicity of their work by allowing journalists to attend the sessions and publishing the explanations for the decisions they make. Based on the Law on…
... detaljnije ...Violations marked the introduction to local elections
Information about the fact that the leaders of around 70 cities and municipalities submitted their resignations – meaning their mandate ended – cannot be found on the Agency for the Prevention of Corruption website. It means that the assemblies of these cities and municipalities violated the legal obligation. An even bigger…
... detaljnije ...
The amendment to the Law on Electronic Media does not solve the problem of "public officials' campaign"
The provision of the Law on Electronic Media, passed today, even with the amendment that was adopted by the Parliamentary Information Committee – allegedly to fulfil the ODIHR recommendation – does not solve the problems related to the promotional activities of public officials and does not represent the fulfilment of…
... detaljnije ...An amendment to prevent procurement for EXPO 2027 from being conducted without applying the Law on Public Procurement
Transparency Serbia has submitted to parliamentary groups in the Parliament of Serbia a proposal for an amendment to the Special Law on EXPO 2027 that would remove one of the significant corruption risks by obliging the special companies that will be formed for the implementation of the project to apply…
... detaljnije ...Novi Pazar, Sombor and Veliko Gradište the Most Transparent Local Governments in 2023
Novi Pazar, Sombor and Veliko Gradište are the most transparent local governments in 2023 according to the Local Transparency Index published today by Transparency Serbia, with support from the United States Agency for International Development (USAID). Since 2015, the Index has been measuring the transparency of all 145 local governments…
... detaljnije ...No public procurement for EXPO 2027 project
Works for the construction of the exhibition area for EXPO 2027, facilities for the accommodation of participants and visitors, the National Stadium and supporting infrastructure – the value of which could amount to one billion euros – will be contracted without the application of the Law on Public Procurement, which…
... detaljnije ...Which Local Governments Were the Most Transparent in Serbia in 2023?
On October 13, 2023, Transparency Serbia and the United States Agency for International Development (USAID) will present the results of the 2023 Local Transparency Index (LTI). The Index has been measuring the transparency of all 145 local governments and 25 city municipalities in Serbia each year since 2015 and tracks…
... detaljnije ...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 ...
- 1
- 2
- 3
