Main problems of public procurement as a mechanism for investment

Authors

DOI:

https://doi.org/10.21564/2225-6555.2016.1.64237

Keywords:

public procurement, tender, electronic trading, customers, the Association Agreement between Ukraine and the EU

Abstract

Problem Setting. In the article were considered the basic problems of enforcement of the public procurement, namely: abuse of exceptions to the legislation on procurement; offenses during the organization of tender committees and planning of procurement, preparation and approval of documentation of trading, opening, evaluation of bids and at the conclusion and execution of contracts; mistakes during the negotiation procedure; breaking the rules of how to fill complaints on procurement to the Antimonopoly committee; by changing the essential terms of the purchase agreements. For example, a fictitious commodity transactions when the customer signs the note and realizes a profit on the goods in accounting, whereby the payment is, but actually the goods to the customer are not fed or fed incomplete; avoiding procurement procedure by dividing the procurement subject into parts; purchase of goods, works and services that are not really necessary for the customer; incorrect selection by tender committee the procurement procedures; customer can nominate to participants following requirements: the availability status of VAT, annual turnover of funds in discriminatory limits, the presence of experience of working practice only with the state purchasers, the experience of supplying only identical goods (services).

The actuality of the topic. Based on the previous analysis were defined the ways of improving the legislation on: 1) approval in the form of an explanation of the Ministry of Economic Development and Trade of Ukraine list of typical violations in the sphere of public procurement; 2) ensure the implementation of the principle of legal certainty in legislation by fixing the essential terms of the purchase agreement; 3) consolidation in the purchase agreement provisions that limit the participation of intermediaries: direct prohibition on intermediaries (commercial, retail) where a participant has to perform the contract itself; the right of provider to engage party agents to perform the procurement contract, if the customer gives prior consent.

The purpose of the article. It is concluded that the lack of government support of any members or groups of species subject procurement in Ukraine is a significant problem. We can provide various grounds for state aid without violating the international commitments of Ukraine, depending on the purpose of such support, such as: small and medium enterprises; innovative enterprises; innovative products containing advanced technology solutions and patents. For this goal it is important to increase the share of non-price criteria in mixed assessment of tenders.

Conclusions. Directive 2014/24/EU of the European Parliament and the EU Council «On public procurement and repealing Directive 2004/18/EU» from 02.26.2014 g. provides for state support certain categories of participants, including: (a) in respect of small and medium enterprises; (b) customers are entitled to create innovative partnerships with one or more participants. In the Agreement on Association between Ukraine and the EU such positive legal institutions are not reflected, while fixed limits on state support. Significant restrictions on regulatory support in this sector are also set in the Agreement on Government Procurement WTO

Author Biography

А. О. Олефір, Yaroslav Mudryi National Law University

Candidate of Law Sciences, assistant of chair of civil, economic and environmental law

References

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Published

2016-03-23

How to Cite

Олефір, А. О. (2016). Main problems of public procurement as a mechanism for investment. Theory and Practice of Jurisprudence, 1(9), 9. https://doi.org/10.21564/2225-6555.2016.1.64237

Issue

Section

CIVIL AND COMMERCIAL LAW