Public procurement is one of ways of the state policy realization, and also huge and profitable business sphere. Just think - pharmaceutical, construction, telecommunication, finance etc., companies are engaged in public procurement. The most number from all these contracts are aimed at purchase and production of goods and services for citizens. All levels of state authority are engaged in the public procurement: beginning from local self-governance bodies up to regional and national. The key question - whether the system of public procurement, in any signed contract, operates the object - service of state interests?
Corruption costs in public procurement.
Abuse of state funds is the cause of corruption. Corruption in public procurement leads to the decreasing the competitive capacity of the state, inexpedient expenditures, neglect the main needs and poverty. Mass market inefficiency also can be a result of corruption and in the end destroy the state’s efforts aimed at development of its society. Experts say that corruption in public procurement makes 20-25%; that often leads to declining the quality of purchased goods and services, and also to unnecessary purchases.
According to experts, about 70% of all expenditures from the state budget, all over the world is public procurement. Corruption risk is already exists before signing the contract.
Taking into account this situation TI carries out the system work on actualization the problem among civil society representatives, business community and state bodies; TI develops specific instruments on counteracting corruption in public procurement. E.g. TI ‘s Minimum standards. More, TI demonstrated that there are real opportunities for decreasing the level of corruption in this sphere. In 2007 Transparency Kazakhstan will take a part in the global project of the TI “Public Contracting monitoring system”. We are going to study thoroughly existing situation and with the assistant of developed indicators to reveal risks which public procurement system in Kazakhstan is subjected to. We are going to represent our recommendations on improvement the situation at the international conference.
Documents:
Voluntary ethic code of behavior and state ethic of conduct
Council of Europe Civil Law Convention on Corruption
