The Committee on Economic Development supported the draft law, which proposes to make simplified procurement optional for procuring entities that are “village or town councils, city territorial communities.” That is even though that the Main Scientific Expert Department of the Verkhovna Rada has made many remarks concerning its content.
Transparency International Ukraine urges not to put to a vote and not to support the 5289 draft law, as this initiative may have a negative impact on the transparency and efficiency of the budget funds use, complicate control in the field of public procurement, and bring back corruption risks in pre-tender amounts.
The draft law has two amendments that actually contradict each other. According to the first one, simplified tenders become optional for most procuring entities (those defined by Article 2, part 1, para. 1–3 of the Law). Among them are state and local government bodies, social insurance bodies, and some legal entities.
Another amendment allows village and town councils and city territorial communities to either conduct simplified procurement or enter into direct procurement contracts at their own discretion to purchase:
- food, oil and lubricants, natural gas and electricity, low-value or perishable goods for health care facilities or educational institutions of municipal ownership;
- services for transportation of students to the educational institution and back;
- design and estimate documentation.
Let us remind you that, according to the current version of the Law on Public Procurement, procuring entities must use simplified procurement for purchasing goods and services from UAH 50,000 to UAH 200,000, as well as works from UAH 50,000 to UAH 1.5 mln. They have to announce the purchase in the Prozorro system. If two or more bidders submit their bids, an auction will take place, if there is only one, the procuring entity can sign a contract immediately with this supplier.
Draft law 5289 effectively eliminates the very idea of simplified procurement and invalidates all the anti-corruption changes it has made to this sector.