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2007 Assessment

Georgia: Integrity Indicators Scorecard

Georgia: Integrity Scorecard Report > Sub-Category: Procurement
Indicators		Score
48	Is the public procurement process effective?	33
49	Can citizens access the public procurement process?	58

Indicator and sub-Indicator Details

Is the public procurement process effective?

48a: In law, there are regulations addressing conflicts of interest for public procurement officials.

Score:

YES

Comments: There are no restrictions and regulations.

References: Law on Public Procurement, art.8

48b: In law, there is mandatory professional training for public procurement officials.

Score:

YES

Comments: There is no requirement for regular training. There is an idea for the creation of a public service school but it has not been implemented yet.

References: Law on Public Service

Peer Review Comments: There is a school of public affairs started by USAID, but the students are not taught this subject. Perhaps in part because the law is very convoluted, and there are no official commentaries that officials dealing with procurement could use as a guidebook.

48c: In practice, the conflicts of interest regulations for public procurement officials are enforced.

Score:

100

Comments: In practice, i.e. during the local elections in October 2006, most of the commercial entities who won public procurement bids in the Capital City, Tbilisi, appeared in the financial declaration of the ruling party as contributors of the largest sums. See report of the Republican Party of Georgia at www.republicans.ge See also various reports of Transparency International-Georgia and the Georgian Young Lawyers Association ("Government Under Sunshine," in particular).

References: There are no mechanisms to enforce.

Peer Review Comments: I really doubt that the Republican Party is an objective source of information.

48d: In law, there is a mechanism that monitors the assets, incomes and spending habits of public procurement officials.

Score:

YES

Comments:

References: There is no mandate for any public agency to monitor procurement officials. It is only the Prosecutor's Office, if a criminal investigation starts.

48e: In law, major procurements require competitive bidding.

Score:

YES

Comments: The answer is yes and no. As a general rule, there are three types of bids and there are monetary limits when bidding is required. Yet, there are serious exceptions to the rule, under art.10 of the Law on State Pocurement, which gives the rights to the president and prime minister to award any contract to anyone without bidding, as well as to delegate the authority to other state agencies to award preferential contracts.

References: Law on Public Procurment, art.10 Law on State Budget Law on Budgetary System

Peer Review Comments: Even under Shevardnadze competitive bidding was required - and I doubt that Saakashvili's government made any significant changes to that rule.

48f: In law, strict formal requirements limit the extent of sole sourcing.

Score:

YES

Comments:

References: There are no restrictions if the president or the prime minister decide so.

Peer Review Comments: But there are restrictions for all other public officials.

48g: In law, unsuccessful bidders can instigate an official review of procurement decisions.

Score:

YES

Comments:

References: Law on Public Procurement, art.15

48h: In law, unsuccessful bidders can challenge procurement decisions in a court of law.

Score:

YES

Comments:

References: Constitution of Georgia, art 42 Law on Public Procurement, art.17

48i: In law, companies guilty of major violations of procurement regulations (i.e. bribery) are prohibited from participating in future procurement bids.

Score:

YES

Comments:

References: No regulation exists.

48j: In practice, companies guilty of major violations of procurement regulations (i.e. bribery) are prohibited from participating in future procurement bids.

Score:

100

Comments: There is no official regulation, yet the Ministry of Education has done it on its own initiative. As there is no legal regulation and requirement, the ministry has published a so-called black list of companies not fulfilling contractual obligations.

References: See list of prohibited bidders (so-called black list) at www.mes.gov.ge

Can citizens access the public procurement process?

49a: In law, citizens can access public procurement regulations.

Score:

YES

Comments:

References: General Administrative Code of Georgia, Chapter 3, Freedom of Information

49b: In law, the government is required to publicly announce the results of procurement decisions.

Score:

YES

Comments: It is all published in the newspaper "24 Hours".

References: General Administrative Code of Georgia, Chapter 3, Freedom of Information Law on Public Procurement

49c: In practice, citizens can access public procurement regulations within a reasonable time period.

Score:

100

Comments: Receipt of information depends on the type of information. It was almost impossible for journalists and NGO to get information about the road construction bid in Georgia, which was rather controversial. The government, as well as the World Bank (co-funder of the project) avoided disclosure of information.

References: Newspaper Rezonansi, TV "Imedi" News about major procurement Interviews with investigative journalists Also, see report at www.gyla.ge - "Georgian Government under Sunshine"

49d: In practice, citizens can access public procurement regulations at a reasonable cost.

Score:

100

Comments: The main problem is the volume of information and the no-culture of electronic transfer of information.

References: Only photocopying costs are charged, as required by law. No other information has been reported. Reports of the Georgian Young Lawyers' Association and TI-Georgia.

49e: In practice, major public procurements are effectively advertised.

Score:

100

Comments: The problems with advertisments are of different types. One of the main issues is the quick deadlines. Ads might be placed in the newspaper three-four days before the deadline. Ads are not informative, they do not give concrete information as to the requested documents etc. So, usually one needs to locate the office, get access (that is usually complicated due to special permission requirments for entering any state building), etc. Experience proves that in most of the cases the winner is predetermined, and bids are announced as a matter of requirement. Finally, most of the state contracts are granted under the special clauses of urgency. See report of the Georgian Young Lawyers' Association about the procurement and privatization problems in Georgia published in August 2007 at www.gyla.ge

References: Newspaper "24 Hours"

49f: In practice, citizens can access the results of major public procurement bids.

Score:

100

Comments: Disclosure of information varies from case to case. Receipt of information depends on the type of information. It was almost impossible for journalists and NGOs to get information about the road construction bid in Georgia, which was rather controversial. The government, as well as the World Bank (co-funder of the project) avoided disclosure of information.

References: Multiple reports by all media outlets. See report of GYLA "Georgian Government under Sunshine": www.gyla.ge