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Policy Brief

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Frequent annulment of tender procedures as one of the major problems in public procurement

Frequent annulment of tender procedures one of the major and most lasting problems in the system of public procurements in our country. The fact that every fourth tender procedure is annulled puts the country on the top rank worldwide according to another infamous phenomenon in public procurements.

The problem with massive annulment of tender procedures did not subside with any of the several measures taken in the past, and more recently with the new Law on Public Procurements, which reduced the list of legal grounds for tender annulment. This shows that institutions easily and daily resort to tender annulment when certain matters are not what they expected, because the analyses do not allow the conclusion that, when annulling tender procedures, they are motivated by the idea of defending the public interest in public procurements.

Tender annulments delay procurement of necessary goods, services and works; create additional costs for repeated organization of procurement procedures; increase economic and legal uncertainty of companies and undermine the trust in public procurements because of the conviction that tender procedures are annulled because they cannot be rigged.