Corruption risks detected in tender procedures of state-owned and municipal utility enterprises

Corruption risks detected are manifested as frequent and significant changes to public procurement plans, but also poor implementation rate of these plans.
06.10.2020473

Corruption risks were mapped as part of in-depth monitoring conducted on tender procedures of 37 joint stock companies and enterprises founded by the Government, the City of Skopje and Municipalities of Kavadarci, Gostivar and Struga. In 2029, these enterprises have signed public procurement contracts in the value of 247 million EUR, accounting for 27% of all public procurements in the country.

Corruption risks detected are manifested as frequent and significant changes to public procurement plans, but also poor implementation rate of these plans. In the case of 16 from 37 analysed enterprises, implementation rate of their public procurement plans is below 50%. The highest implementation rate of 96% is noted with JSC MIA, while the lowest rate of only 1% is noted with JSC Water Economy.

Concentration of public procurements with particular company, as one of the most relevant indicators of corruption risks, is a problem noted with large portion of analysed enterprises and joint stock companies. In the case of almost one third of them, concentration of public procurements with one company exceeds 40%. The highest value share for single company is observed with JSC Power Plants, while the highest share for public procurements is observed with JSC Water Economy.

One third of targeted enterprises have organized non-transparent negotiation procedures without prior announcement of call for bids. High shares of such procurements in total value of all public procurements are recorded with the Official Gazette (28%) and PE City Parking – Skopje (22%).

The research can be downloaded in Macedonian, Albanian and English language

     

The research paper Mapping Corruption Risks in Public Procurements of Enterprises Owned by the Government and Municipalities is developed as part of the project “Toward Accountable Public Enterprises” with financial support from the Embassy of the Kingdom of the Netherlands in Skopje, implemented by the Center for Civil Communications in the period 1 October 2019 – 30 September 2021.