Public Monitoring of Public Procurement (CZ0039)

Brief Description of the Commitment

The involvement of an independent participating observer in the procurement procedure and the implementation of the contract strengthens the anti- corruption resilience of public procurement. One of the tools is the Integrity Pacts2 , whose wider use is hampered by low awareness of the tool among contracting authorities and the public.

Problem Definition

1. What problem does the commitment aim to address? Public procurement is subject to a substantial risk of corruption in view of the volume of transactions and financial interests of the parties concerned, the complexity of the process or the number of entities involved in the awarding of public contracts. Traditionally, public procurement has been associated with a high percentage of bribery offences. As a result of corruption, the contracting authority may not achieve the highest quality of performance in relation to the resources spent. The impacts can thus be seen in the wasteful, inefficient, and ineffective use of public funds, both from the point of view of the public budgets themselves and from the point of view of individuals or the wider society. This can be prevented by greater involvement of the civil society in the control over procurement procedures and the implementation of the public contracts. However, this civil control is currently insufficient. At the same time, the public may feel mistrust of the procurement procedure. Public involvement can help build confidence in the effectiveness of procurement procedures and how public funds are spent in this way.

2. What are the causes of the problem? On average, 14% of GDP is spent on public contracts in the European Union. This is a significant amount of public funds, for which some persons involved may be interested in their non- transparent distribution. Factors such as conflict of interest, various agreements of participants in procurement procedures to influence the outcome of the procurement (e.g., bid rigging), insufficient accountability of persons involved, systemic corruption, etc. might play a role here. At the same time, the involvement of civil control in the procurement and the implementation of public contracts appears to be insufficient. This may be due to the complexity of the procurement legislation, amendments, and fulfilment of public procurement commitments, or the lack of support for civil control by contracting authorities.

Commitment Description

1. What has been done so far to solve the problem? Public involvement in the public procurement takes place regularly through the participation of representatives of the civil society in evaluation committees. More or less systematic monitoring of public procurement is carried out by some non-profit organisations, either based on their own activities or an external initiative. Transparency International Česká republika has been or is involved in the external monitoring of several public contracts directly through the Integrity Pact tool.

2. What solution do you propose? It is necessary to seek new and effective methods to control the awarding of public contracts and their implementation, including through the support of public participation in this control. Integrity Pacts can also be a monitoring tool as a tool of public control and prevention of corruption, which is increasingly used in Europe. Integrity pacts can serve a preventive function in the sense of preventing corrupt behaviour, but also, to a certain extent, a redressal function by alerting to wrongdoing after it has been detected (whistleblowing). Wider involvement of civil society in the awarding and implementation of public contracts can also lead to greater confidence in the effective management of public administration and public administration as a whole.

3. What results do we want to achieve by implementing this commitment? Through systematic raising awareness of the public, training, or other educational and promotional activities, the general public will be informed about the possibilities, meaning, and purpose of involvement in the awarding and implementation of public contracts, thereby motivating the public to participate.

Analysis of the commitment

1. How will the commitment promote transparency? Increased involvement of the civil society in decision- making processes on the allocation of public funds undoubtedly increases transparency in the management of public assets and relevant decision-making processes.

2. How will the commitment help foster accountability? In addition to the ex-post control by the public authorities, civil control over the course of procurement procedures, and the subsequent implementation of public contracts is important. This will reinforce the accountability of the persons representing the contracting authority, in particular, where they are elected representatives.

3. How will this commitment improve citizens' participation in the development, implementation, and monitoring of solutions adopted? The commitment aims directly at the participation of citizens in decision-making processes by monitoring the progress and implementation of public procurement.

Commitment Planning (Milestones | Foreseen outputs | Estimated date of completion)

Basic information about the involvement of the public in procurement procedures for the public. | A document detailing the possibilities of involving the public as an independent participant observer in procurement procedures aimed at the public. | 1 June 2023

Basic information about the involvement of the public in procurement procedures for contracting authorities. | A document detailing the possibilities of involving the public as an independent participant observer in procurement procedures aimed at contracting authorities. | 1 June 2023

Informing contracting authorities about practical experience with Integrity Pacts. | Participation of the TI of the Czech Republic in a conference aimed at a wider spectrum of contracting authorities with a contribution on Integrity Pacts. | 31 December 2023

Education in the field of public involvement in procurement procedures and other activities | Conduct workshops on Integrity Pacts and public participation in procurement procedures for various target groups. | 31 December 2024

Action Plan Review

Commitment 5. Involvement of the public in the monitoring of public procurement