The People's Representative from "Continuing the Change - Democratic Bulgaria" Bogdan Bogdanov submitted an official signal to the Prime Minister Rosen Zhelyazkov, in which he expresses serious concerns about the transparency and efficiency in the conduct of public procurement for municipal projects, the PP press center announced.
He gives specific examples and draws special attention to a case with an order for the construction of a sports hall in Pleven. The signal has also been sent to the State Financial Inspection Agency, the Minister of Finance and the Minister of Regional Development and Public Works.
Bogdanov emphasizes the investment program for municipal projects, which is a major instrument for the decentralization of public funds. According to him, the lack of transparency and competition in the conduct of public procurement for municipalities leads to serious risks for the effective spending of public funds.
The signal lists specific public procurements in which the practice of only allowing one participant to the final stage has been proven. 70 public procurements for municipal projects in the country with a total value of over 130 million leva were analyzed. In 60 of the cases, only one candidate was allowed to the final stage. In these cases, the difference between the set starting price and the awarded value is only 0.89%. For comparison, in the 10 cases where there was competition between more than one candidate, the price at which the contracts were concluded was on average 21.89% lower than the initial price.
“Practices for procurement with one candidate eliminate price competition and lead to a significant increase in the value of the projects being implemented, which creates serious risks for the public interest and the effective spending of public funds“, states Bogdan Bogdanov.
The signal cites a specific case related to the public procurement for the construction of a Multifunctional Sports Hall in the city of Pleven, the value of which exceeds 36 million leva including VAT. According to Bogdanov, the procedure was carried out in a lack of transparency, with only one participant being admitted to the final. He added that the value of the project is significantly inflated compared to market prices, and the technical and financial parameters of the project have not been subject to public discussion.
The following are noted:
- Inflated costs compared to other similar projects in the country;
- Lack of up-to-date public information about the project and its parameters;
- Possible conflict of interest related to the sale of part of the land on which the sports hall is to be built.
The MP calls on the Prime Minister to use all government resources to order a full investigation of both the case in Pleven and the overall practice of conducting public procurement for municipalities in the country. According to him, in order to protect the public interest, urgent measures must be taken to ensure transparency, competition and efficiency in the spending of public funds.