TIRANA, Feb. 8 – Seventeen companies have been disqualified from participating in public tenders for two and three years after abuses were identified in their procurement procedures, according to the latest bulletin issued by Public Procurement Agency. Among the companies stripped of their right to take part in public procurement are well known oil and construction companies. Eurooil sh.a Tirane, whose owner is at large for oil smuggling in a massive fraud unveiled in 2011, has been disqualified until Jan. 24. 2014.
In an earlier 2011 annual report the Agency said it had received 32 proposals to strip economic operators of their right to participate in public tenders.
The report says that in 2011, some 40 officials of Contracting Authorities and members of bid assessment commissions were fined from 50,000 to 100,000 for violating tender procedures.
The total number of procedures announced by the Public Procurement Agency in 2011 was 4,835 with a total fund of 62 billion lek.
According to findings of a survey published by the American Chamber of Commerce in Albania,
half of the economic operators using Albania’s Electronic Procurement System (EPS) say they need further training on using EPS, despite the procedure being compulsory since January 2009. Some 300 economic operators (Eos) that submitted one or more electronic bids during 2009, located in Albania’s 12 districts were included in the study carried out during the February-March 2010, whose findings and recommendations were presented last weekend to representatives of the business community and public institutions that use the system, and to civil society organizations and international donors.
Under the government decision mandating that starting January 1, 2009, all public institutions should issue procurements only through EPS, thus eliminating the use of paper-based procurement procedures, Albania became the first country in the world to implement a 100% electronic procurement system for all public sector procurements above the threshold of 3,000 Euro.
The achievement was internationally recognized when on June 23rd, 2010, PPA received the 2nd place (behind Germany) in the Public Service Awards Program, among public organizations from fifteen countries recognized for excellence in public service by the United Nations Department of Economic and Social Affairs.
Abuses
Procurements, although made through an online system since years now, rank third abusive sector with a damage of 175 million lek, mostly in local government units such as the Tirana and Durres municipalities, according to a High State Audit report for the first three quarters of 2011.
A Euro1 million project funded by the EU has recently paved the ground for concrete improvements of Albania’s public procurement, concession and auction system. Ambassador Ettore Sequi pointed to the centrality of sound public procurement practices for transparent and efficient use of taxpayers’ money. Ambassador Sequi emphasised the need for Albanian authorities to follow up on the products of this assistance, noting that the EU “can bring expertise to help with laws, to assist in training staff, in disseminating information etc, but we cannot lead the reform of Public Procurement, we cannot pass your laws, we cannot enforce your laws. It is the responsibility and the duty of Albanian authorities and of the Albanian political class to make transparent and efficient use of the money that comes from the pockets of Albanian citizens”.
In its latest 2011 report on Albania, the European Commission said the legislative framework on public procurement and concessions is not fully in line with the acquis. “Efforts are required with regard to strengthening the institutional framework and clearly defining and delimiting the competencies of all public procurement institutions in order to avoid the overlapping of tasks and to remove the remaining loopholes in the system. No comprehensive system of administrative monitoring and control of the application of public procurement rules and contracts has so far been introduced. Overall, preparations in the field of public procurement are moderately advanced.”
