PRAGUE (Dow Jones)--The American Chamber of Commerce in the Czech Republic, known as AmCham, Wednesday invited peers from other countries to join forces and push for revisions of government public tender regulations in order to stem alleged corruption.
According to recent research by the Association of Small and Medium-sized Enterprises and Crafts in the Czech Republic, known as AMSP, bribes account for 15% of the value of public contracts, including procurement and construction, awarded by local government offices.
Last year, Czech local and national governments awarded contracts and procurement deals worth over 200 billion koruna ($10.6 billion), AMSP said.
AMSP also said kickbacks account for less than 9% for contracts in the Czech private sector, although the union has no data on the overall volume of contracts tendered by nongovernment-affiliated companies.
A key element of AmCham's proposed changes would require companies to fully disclose their ownership structure to be allowed to bid for procurement or other contracts. At present closely-held companies with opaque ownership structures in the form of bearer, or anonymously-held, shares are allowed to bid in government tenders.
Soucek went on to say local government committee meetings held to pick public tender winners should be made public. Generally these meetings are held behind closed doors.
"The opening of envelopes with individual bids should be made transparent," she said.
Public tender committees should also follow standardized, clearer rules for the wording of tenders, she said. Often bidders are disqualified on the basis of formal mistakes in the wording of their bids, Soucek said.
Labels and Tags
Accountability (66) Adequate documentation (4) ADR in procurement (3) Allocation of risks (5) Best interest of government (11) Best practices (19) Best value (14) Bidder prejudice (9) Blanket purchase agreement (1) Bridge contract (2) Bundling (6) Cancellation and rejection (2) Centralized procurement structure (12) Changes during bid process (13) Clarifications vs Discussions (1) Competence (9) Competition vs Efficiency (28) Competitive position (2) Compliance (32) Conflict of interest (28) Contract administration (24) Contract disputes (1) Contract extension or modification (8) Contract terms (2) Contract types (6) Contract vs solicitation dispute (1) Contractor responsibility (18) Conviction (3) Cooperative purchasing (3) Cost and pricing (13) Debarment (4) Determinations (8) Determining responsibility (32) Disclosure requirements (7) Discussions during solicitation (9) Disposal of surplus property (3) Effective enforcement requirement (34) Effective procurement management (3) Effective specifications (35) Emergency procurement (14) eProcurement (5) Equitable tolling (2) Evaluation of submissions (20) Fair and equitable treatment (13) Fair and reasonable value (23) Fiscal effect of procurement (13) Good governance (8) Governmental functions (26) Guam (14) Guam procurement law (12) Improper influence (11) Incumbency (12) Integrity of system (29) Interested party (7) Jurisdiction (1) Justification (1) Life-cycle cost (1) Limits of government contracting (4) Lore vs Law (4) market research (6) Materiality (3) Methods of source selection (28) Mistakes (3) Models of Procurement (1) Needs assessment (10) No harm no foul? (8) Other procurement links (14) Outsourcing (31) Past performance (10) Planning policy (33) Politics of procurement (46) PPPs (6) Prequalification (1) Principle of competition (88) Principles of procurement (21) Private vs public contract (15) Procurement authority (5) Procurement controversies series (75) Procurement ethics (17) Procurement fraud (27) Procurement lifecycle (9) Procurement philosophy (15) Procurement procedures (29) Procurement reform (57) Procurement theory (11) Procurement workforce (2) Procurment philosophy (6) Professionalism (17) Protest - formality (1) Protest - timing (10) Protests - general (35) Purposes and policies of procurement (9) Recusal (1) Remedies (16) Requirement for new procurement (4) Resolution of protests (3) Responsiveness (11) Restrictive specifications (3) Review procedures (12) Scope of contract (16) Settlement (2) Social preference provisions (59) Sole source (46) Sovereign immunity (2) Staffing (7) Standard commercial products (1) Standards of review (2) Standing (5) Stays and injunctions (6) Structure of procurement (1) Substantiation (9) Surety (1) Suspension (6) The procurement record (1) The role of price (8) The subject matter of procurement (22) Trade agreements vs procurement (1) Training (32) Transparency (59) Uniformity (5) Unsolicited proposals (2)
Wednesday, March 10, 2010
Procurement controversies -- Czech Republic
Czech-American Business Body Seeks Tender Rule Change