The AIS team, promotor of Open Data Albania and creators of the Open Procurement Albania database, is diligently fact-checking the statistical information presented by Prime Minister Edi Rama during the Socialist Party Parliamentary Group meeting on 07.05.2024. Specifically, we are focusing on the Public Procurement Statistics.
From the Prime Minister’s speech, which occurred between minutes 1:33:00 and 1:43:00 of the recorded session, link: Meeting of the Socialist Party Parliamentary Group.
Prime Minister Rama:
Contrary to a prevalent misconception suggesting that few selected individuals monopolize state funds and distribute them among supposed beneficiaries, it’s often believed that tenders are exclusively awarded to these few, equal to the fund limit. In fact, there are not 5, but 25,000 entities which have successfully won public tenders in the last 10 years.
Fact Checking:
Verification of Statistical Fact No. 1:
Prime Minister Statement: “During the Berisha government’s term, the average number of economic operators being awarded public tenders was approximately 1,000.”
Fact Checking Conducted by the Open Procurement Albania team: Utilizing public data from the Public Procurement Agency app.gov.al, specifically the OpenData category, and referencing the catalogue for the year 2012, the number of businesses (identified by NIPTs/Tax Identification Number) listed as winners in finalized public tenders, with Winner Notification or Contract Signed (excluding purchases of value under 800 thousand ALL), are 876 unique Business Identification Numbers (NIPTs).
• The Prime Minister’s statement aligns with or slightly underestimates the actual figure of around 1,000 businesses, winners of public tenders in 2012.
Verification of Statistical Fact No. 2:
Prime Minister Rama Statement: “In recent years, this number (of operators) is on average 2,500, or two and a half times higher. Not only has the economy grown and businesses expanded, but also due to reduced corruption and increased competition, 6061 new companies have been awarded tenders with public funds in the past 10 years.”
Fact Check: Conducted by the Open Procurement Albania team:
In 2023, during the Rama Government, the Public Sector announced winners for tenders exceeding 800,000 ALL, only 1 376 unique businesses (NUIS). This represents an increase in winning businesses compared to 2012 of only 1.6 times, and the tendered fund limit being 2.5 times higher.
· The Prime Minister’s claim regarding the growth or average of profitable businesses in public tenders lacks accurate evidence.
Reasoning:
The Statistical analysis reported by Prime Minister Rama includes Businesses/Operators added to the List of Beneficiaries in Tendering, including new BOT configurations (an economic operator which is created by the merger of two operators) of the same NUIS-s.
Fact: Mergers of BOT Economic Operators, where certain businesses or NUIS-s, which have previously been awarded contracts and public money in tenders, create a new configuration should not be considered new businesses; there is no expansion of the number of beneficiaries in tenders.
Example: Business A and Business B have individually won public tenders. Later, they collaborate and successfully win a tender together as an Association of BOT Operators. In this scenario, the number of contractual or profitable businesses remains unchanged. However, the number of configurations, where a business or NIPT appears multiple times, is indeed increased.
Conclusion: The confusion between the term “Operator” and “Subject or Contracting Business” results in a misinterpretation regarding the increase of business access to contracting through public tenders.
Operator = Business Company or Combination of two or more Companies.
Contractor Business = Business Company that has won at least one tender alone or in collaboration with other businesses.
Verification of Statistical Fact No. 3:
Prime Minister Rama Statement: ” In fact, there are not 5, but 25 000 entities which have successfully won public tenders in the last 10 years”
Fact Checking: Identifying NUIS-s appearing in the list of winners from 2010 to 2023 for tenders made in the electronic system, valued over 800 thousand ALL, the data reveals that only 3 469 NUIS-s appear as authentic.
· Conclusion: The number provided by the Prime Minister, 25,000, is not accurate based on the data analysis conducted.
Visualizations and Data: Link
Impact in Media: Link Voice of America The News Program LINK
Read more about Public Procurement and Accountability:
Comments and Analyses: Open Data AlbaniaContributed by: Open Data Albania
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