Economic damage in the area of public procurement during the period 2008-2012

Public procurement has been consistently one of the most problematic sector causing economic damage to the State Budget. Damage comes as a result of the abuse in the calculation of the contract value, presentation and receipt of bids, ensuring the validity of the bids, the examination of the tenders submitted to the competition, archiving files for the developed tenders, implementation of the contracts by contractors in accordance to the general conditions, etc..

Open Data Albania has conducted a research on the economic damage reported in 2008-2012 period for this sector by the Supreme State Audit.
 


^{Source : Supreme State Audit
Processing and comments: ODA}

As can be seen from the graph, the period taken under consideration can be divided into two parts. In the first part, the period 2008-2010, there is a downward trend of the economic damage in the area of public procurement, supported among others by the coming into force of the electronic public procurement since January, 2009. Thus, in 2009, the economic damage in procurements was about 44% lower than in 2008 and 2010, this decline deepened further, resulting as almost ¼ of the damage reported for 2008.

In contrast to expectations for a further decline of the damage in this area due to electronic procurement, the 2011-2012 period resulted in an upward trend. What?s interesting  about 2011 is that most of the damage was caused by local government units. About 68% was their damage against total procurement damage, among which stands out the Municipality of Tirana with 30.4 million ALL and also the Municipality of Durres with 22.39 million ALL.

For 2012, the damage to the procurement area reached 444.5 million ALL, marking a level about 2-times higher than in 2011 and reaching its peak since 2008. About 50% of the damage or 225.6 million, belonged to the Interior Ministry, while next on the list was KESH, which has caused an approximately 54.7 million or 12% compared to total damage.

The damage in the area of procurement, in relation to the total economic damage and the total budget expenditure and GDP for the years 2008-2012 is presented as follows:

^{Source : Supreme Audit Institute, Ministry of Finance, the Council of Ministers
Processing and comments: ODA}

1. ^{The data on the economic damage for the 2008-2012 period were obtained from the SSA Annual Report for each respective year.}
2. ^{The data on the total expenditure for the State Budget were obtained from the Fiscal Bulletin for the last 4 months of each year.}
3. ^{The GDP data refer to No.1 DCM, dated 23.01.2013 “On the approval of the macroeconomic and fiscal framework” for the 2014-2016 period.}