MPs propose to change the rules for procurement at the expense of local budgets. TI Ukraine urges not to vote for this draft law.

Shortly before the beginning of the full-scale invasion, MPs registered a draft law, proposing to simplify procurement at the expense of local self-government budgets:

  • to raise the higher limit of simplified procurement from UAH 200,000 to UAH 500,000 for the procurement of some goods, services, and works at the expense of local budgets;
  • to introduce hyperlocalization on food procurement — provide procurement preferences to participants registered in the procuring entity’s community.

TI Ukraine urged back then to abandon the harmful initiative, which violates the basic principles of the Prozorro system. However, in August, MPs voted on the draft law No. 6537 in the first reading — to use it as a basis with a shorter period of preparation.

By the second reading, the text had been amended. Now, it proposes not just to raise the threshold for simplified procurement of fuel and energy, food, transportation to educational institutions, and the development of design and estimate documentation — but to remove it altogether. That is, to allow simplified procurement for any amounts.

Let us remind you that the main risk of simplified procurement is that participants cannot contest it with the Anti-Monopoly Committee. This means that they cannot defend their rights if they are violated. At the same time, simplified procurement is not monitored by auditors.

“The strangest thing is that 6537 has emerged again right now. After all, at the time of the war, the Cabinet of Ministers introduced separate procurement rules, and they are simpler than in peacetime, explains Ivan Lakhtionov, Deputy Executive Director of TI Ukraine for Innovative Projects. At first, there was simplified procurement for any amounts, and recently, it has become necessary to conduct open bidding, simply according to an easier and faster algorithm. This was done, in particular, to avoid corruption risks in simplified procurement.”

Transparency International Ukraine calls for a vote against 6537 if it is put to second reading. Moreover, even if it is adopted, it will not be possible to apply the innovation until the end of the war. Because the resolution of Cabinet of Ministers doesn’t provide for simplified procurement at all.

This publication was prepared with the financial support of the European Union. Its contents are the sole responsibility of Transparency International Ukraine and do not necessarily reflect the views of the European Union.

The strangest thing is that 6537 has emerged again right now. After all, at the time of the war, the Cabinet of Ministers introduced separate procurement rules, and they are simpler than in peacetime.

Ivan Lakhtionov