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According to the monitoring of public tenders, the State Financial Inspection of Ukraine prevented losses of public funds in public procurement in excess of 1.4 billion UAH in 2013, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine reports.
In particular, after investigating corruption schemes, competitive bidding for a total amount of 632.6 million UAH was cancelled, and the concluded contracts totaling 815.6 million UAH were terminated.
The most effective loss prevention activities of the State Financial Inspection occurred in Donetsk (461.8 million UAH, or 31.9% of total loss of public funds) and Lviv (162.3 million UAH, or 11.2%) regions.
Government analysts say there are two major corruption scenarios today by which abuse in public procurement is investigated.
The first is an open tender, but its terms are tailored to a specific supplying company. The second corruption scenario is hand-operated redistribution of budgetary funds in the best interests of the partner companies. Generally, this is the so-called sole source procedure, which requires patronage of a specific official.
However, with the new Inspection Procedure which came into effect on Sept. 17, 2013, the State Financial Inspection of Ukraine received new and effective counteracting mechanisms to minimize those common corruption schemes in the field of public tenders.