Recently, the Accounting Chamber has published its audit report on state-owned enterprise Prozorro.Sale. Some of the statements of the report may undermine the credibility of the electronic trade system and the enterprise itself, although it is designed to mitigate corruption risks and sale or lease public or municipal property transparently.

Among other things, the Accounting Chamber referred to “inefficient use of property” and “inefficient sale of lots through the Dutch auction in the system.” They also questioned the receipt of revenue from the sale of property.

Transparency International Ukraine emphasizes:

  • the transfer of the system took place under the current legislation and with approval of the Ministry of Economic Development;
  • the state-owned enterprise commissions development and upgrade services because it needs to be upgraded and improved upon systematically. Thus, such expenses are reasonable and necessary;
  • the modified Dutch auction leads to greater revenue from the sales of problematic loans and thus fosters competition, according to the research by Kyiv School of Economics.

Since the system came into operation, the national budget and local budgets have received a revenue of UAH 23.6 billion. Furthermore, in the recent years, Prozorro.Sale has already been recognized worldwide.

Transparency International Ukraine administered the creation and development of Prozorro.Sale, transferring the rights to the system to the government for free in July 2019.