Procurement agency sues tender commission members
25 November, 2010
Procurement agency sues tender commission members

Cases against the commission members handling the state procurement tenders are sued.
On November 21, 2010, the State Procurement Agency (SPA) instituted legal proceedings against the members of tender commissions for the tenders that were awarded in violation of law in 2010.  SPA is a mediator chain between state procuring organizations and companies offering their goods and service. However, apart from organizing fair and transparent tenders, SPA is also responsible for monitoring the results of tenders, whether or not participant

sides observe the terms and criteria that determine the process of putting out of tenders. 
As Tato Urjumelashvili, Head of SPA, explained to Georgia Journal, criteria and terms of any tender is put out by procuring organizations and SPA never dictates its rules of game but after the tender is through it is responsible to monitor whether or not the tender was really held based on the terms required before the tender on one hand, and whether or not hired companies met the obligations assumed at tender. Moreover, SPA double-checks whether or not all the tender-related procedures, terms and obligations are put in compliance with the law.
“The State Procurement Agency is intensively pursuing one of its statutory duties – to ensure the rational disbursement of funds allocated from the budget for tendering purposes and fair and non-discriminatory environment for holding tenders,” SPA official paper informs.
In 2010 SPA referred 23 administrative infringement reports to the court against procuring entities and the members of their tender commissions due to the violations made during the procuring process.
As of 22 November the court imposed penalties upon 57 persons and the cases of 30 offenders are still pending. The net amount of penalties already imposed by court totals GEL 85 500. Fines amounting to GEL 1 500 in each case were paid by fined officials from their personal incomes.
According to statistic data, the most frequent violations on the part of procuring entities are as follows: incorrect selection of state procurement methods with a view to avoiding tender or other procurements methods envisaged by the Law of Georgia on State Procurement, or artificial splitting of contracts with a view to avoiding pecuniary thresholds, which are set by the Law of Georgia on State Procurement.
Procuring entities also frequently fail to correctly draw up a call for tender, complete the tender documentation; the members of tender commission are biased when evaluating qualification data, qualification selection and tender proposals of bidders. Moreover, they violate state procurement contract awarding rules and procedures.
There are over 5 thousand organizations in Georgia, which accomplish their tender procedures according to the law on State Procurement. State procurement transactions will be available via electronic system alone starting this December. E-tender system is supposed to make all the procurement-tender-related information transparent and unbiased. It may diminish possibility of violation law as far as all people along with tender participants will be able to monitor tender terms and proposals via internet. Moreover all reports and accounts made respective to all tenders will be put at the official web-site of SPA and be available to any citizen of Georgia free of charge.

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