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Discrimination as an Instrument of Corruption Schemes in Public Procurement
Faizov A. V.

Faizov, Anatolii V. (2021) “Discrimination as an Instrument of Corruption Schemes in Public Procurement.” Business Inform 5:246–251.
https://doi.org/10.32983/2222-4459-2021-5-246-251

Section: Economics of Trade and Services

UDC 338.054.23:339.186

Abstract:
The article characterizes the current state of organizational and legal support for the functioning of the public procurement system, taking into account the novelties of legislation; both the inter-sectoral and the protective principles of bidding, which are closely interrelated and form a single system, are analyzed; the role of the principle of «prevention of corruption actions and abuse», which has a comprehensive influence on the entire mechanism of implementation of the norm-setting innovations, is defined; a number of factors that cause corruption risks and distort the effect of basic principles in the sphere of procurement are distinguished (in particular: dishonest behavior of officials; discretion in making legally significant decisions; insufficient professionalization of bidding; imperfect system of internal control over conduct of tenders and execution of contracts); the concept of discrimination is singled out and its role as an instrument for the implementation of corruption schemes in public procurement is defined. Based on the analysis of the effective practice of appealing by the AMCU, a number of ways of using discriminatory elements by customers at the initial and final stages of bidding are systematized, namely: establishing obvious and hidden excessive requirements in the tender documentation; manipulation of technical and qualitative conditions to the subject of procurement; unjustified disparate approach to participants with the similar errors in the preparation of tender offers. Practical measures to counteract discriminatory violations in the sphere of procurement activities are generalized, which involve the use of the capabilities of the digitized systems «ProZorro» and «DoZorro» with active participation in this process by direct procurement participants, non-governmental organizations, and government authorities.

Keywords: public procurement system, participant, organizer of bidding, corruption scheme, discrimination, tender documentation, counteraction measures.

Fig.: 2. Bibl.: 9.

Faizov Anatolii V. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Economic Security and Financial Investigations, National Academy of Internal Affairs (1 Solomianska Square, Kyiv, 03035, Ukraine)
Email: [email protected]

List of references in article

[Legal Act of Ukraine] (2019). https://zakon.rada.gov.ua/laws/show/114-20#Text
“Mizhnarodnyi reitynh prozorosti publichnykh zakupivel: Ukraina na pershomu mistsi“ [International Public Procurement Transparency Rating: Ukraine First]. https://ti-ukraine.org/news/gruzynskyj-rejtyng-prozorosti-publichnyh-zakupivel-ukrayina-na-pershomu-mistsi/
Kalina, A. “Koruptsiia ta derzhavni zakupivli: mizhnarodni pravovi instrumenty“ [Corruption and Public Procurement: International Legal Instruments]. Radnyk u sferi publichnykh zakupivel. November 20, 2015. https://radnuk.com.ua/zhurnaly/koruptsiia-ta-derzhavni-zakupivli-mizhnarodni-pravovi-instrumenty/
“Chy doviriaie biznes derzhavnym tenderam?“ [Does the Business Trust Government Tenders?]. https://e-tender.ua/news/chi-doviryaye-biznes-derzhavnim-tenderam-387
“Sprava «Pichkur proty Ukrainy» (Zaiava No. 10441/06)“ [Pichkur v. Ukraine (Application No. 10441/06)]. Rishennia Yevropeiskoho sudu z prav liudyny vid November 07, 2013 r. https://zakon.rada.gov.ua/laws/show/974_984#Text
[Legal Act of Ukraine] (1993). https://zakon.rada.gov.ua/laws/show/3659-12#Text
[Legal Act of Ukraine] (2001). https://zakon.rada.gov.ua/laws/show/2210-14#Text
“Zvit Antymonopolnoho komitetu Ukrainy za 2020 rik“ [Report of the Antimonopoly Committee of Ukraine for 2020]. https://amcu.gov.ua/news/richnij-zvit-amku-za-2020-rik
Stepankovska, Ya. “Yak obduryty ProZorro. Sim sposobiv“ [How to Cheat ProZorro. Seven Ways]. Hlavkom. September 03, 2018. https://glavcom.ua/economics/finances/yak-obduriti-prozorro-sim-sposobiv-524647.html

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