The Government Procurement Service Lacks Transparency
04.11.2014
12:00
“Armenia's membership in the Eurasian Economic Union will cause serious problems in the government procurement service. In terms of legislative perfection our legislation is more perfect than that of the countries we are going to cooperate with.” At the Media Center initiated press conference Artak Manukyan, expert at Transparency International NGO, spoke on the recent trends in RA Government Procurement Service.

The expert presented the results of the studies carried out in 2011- 2014 which describe the Armenian government procurement procedures as lacking transparency. Though in 2011-12 there was a slight improvement in this regard, the 2014 studies show that there has been regress with respect to publicity and transparency, as well as ensuring real competitiveness.

Since 2011 the authorities responsible for government procurement are obliged to publish information on the website regarding appeals and hearings. The same provision is described in the WTO Government Procurement Agreement which Armenia joined in 2011. However, these requirements are not only partially carried out but there is a tendency to neglect them.

In Armenia there is a rather risky and widespread tendency to purchase the required units from one individual.

Artak Manukyan said that in 2011-13 an average index of purchasing from one individual amounted to 65% while in the first six months of 2014 that index decreased to 55%, “nearly 10 thousand contracts have been signed. In this regard, the abuses prevail especially in the local government system.”

In 2011 when Armenia joined the WTO Government Procurement Agreement, it undertook to conduct a non-discriminatory procurement policy, i.e. Armenia is to avoid showing preference to either local or foreign producers. According to Artak Manukyan, in Russia, as provided by its legislation, during tenders preference is given to domestic producers within 15%. “In fact, what we have now is a fortuitous event. It is unclear how the government will resolve this contradiction,” said Artak Manukyan.

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