Democracy Plus (D+), a Core Grant beneficiary of the SMART Balkans project in Kosovo, has published a comprehensive report titled “Public Procurement Issues: Findings from the Analysis of Eleven Tenders at Central and Local Levels”. This report highlights significant shortcomings and legal violations within Kosovo’s public procurement system.
Analyzing tenders conducted between July and December 2024, with a total estimated value of €8.5 million, the report focuses on the practices of both central and local authorities. The findings raise serious concerns regarding transparency, fairness, and efficiency in the use of public funds.
What Does the Report Reveal?
The report examines procurement procedures from various institutions, including the Ministry of Industry, Entrepreneurship, and Trade (MIET), the Ministry of Internal Affairs (MIA), the Ministry of Infrastructure (MI), and municipalities such as Gjakovë, Gjilan, and Pejë. The main findings identify several recurring issues:
- Conflict of Interest: In the Ministry of Industry, Entrepreneurship, and Trade, staff responsible for drafting technical specifications for tenders were also involved in evaluating bids, violating legal provisions designed to ensure impartiality. Furthermore, tenders were awarded to operators offering bids up to 70% lower than the estimated contract value, raising concerns about the quality and feasibility of contract execution.
- Unlawful Cancellations: The Ministry of Infrastructure canceled tenders without valid legal justification, undermining transparency and fair competition among economic operators.
- Non-compliance with Procurement Review Body Decisions: The Ministry of Internal Affairs disregarded binding decisions from the Procurement Review Body, applying unfair and discriminatory criteria that delayed the provision of essential services.
- Mismanagement at the Local Level: The Municipality of Gjakovë canceled the same procurement procedure multiple times without legal justification, causing delays in implementing public infrastructure projects.
- Lack of Clear Technical Criteria: The Municipality of Gjilan failed to establish clear technical standards for a school uniform tender, leading to subjective evaluations that favored higher-cost providers.
- Violation of Fair Competition Principles: In Pejë, economic operators were excluded from the bidding process based on unresolved disqualification requests, contrary to the principle of equal treatment in public procurement.
Why Are These Findings Important?
The report highlights the risks posed by these irregularities, including:
- Reduction of fair competition,
- The potential favoritism of specific operators,
- Mismanagement of public funds,
- Erosion of public trust in government institutions.
These practices undermine the principles of good governance and hinder Kosovo’s progress toward meeting European Union standards.
Key Recommendations from the Report
To address these challenges, Democracy Plus recommends:
- Strict enforcement of public procurement laws and the prevention of conflicts of interest.
- Application of clear and transparent criteria throughout the tendering process.
- Immediate implementation of binding PRB decisions.
- Strengthening oversight and monitoring mechanisms to enhance accountability and transparency.
This report underscores the urgent need for reforms in Kosovo’s public procurement system. Implementing clear rules and strengthening control mechanisms are essential for ensuring the responsible and efficient use of public funds.
For more information, read the report in English.
