Money for transparency

The EU is ready to resume the aid program stopped last year and assist Ukraine with 200 million euros. However, first they demand making the system of government purchases trans-parent. This was declared by An-drew Rasbash, Head of Operations, EU Delegation to Ukraine.

“We can speak about 200 million euros by the end of 2013 to realize several projects in the sector of government purchases, energy, environmental protection and overcoming technical barriers. However, there is a condition to get this money – specific achievements in the development of the abovementioned sectors and in public finance management,” Rasbash claimed in his commentary to UNIAN.

The EU representative reminded that last year Ukraine got 31 million euros of financial assistance but the program of cooperation was suspended when the Verkhovna Rada amended the law on government purchases and made them nontransparent.

“Now we have to see that the mechanism of money distribution is practical and clear since the financial assistance goes directly to the budget and then is distributed by the Ukrainian authorities. Figuratively speaking, we will pay for results: if results are acceptable, we will transfer the money,” Rasbash emphasized. According to him, if there is a clear mechanism of public finance management implemented by the Ukrainian authorities, there will be no need in additional control of money given within the framework of financial aid from EU.

Meanwhile, the government considers public purchases honest and transparent but do not refuse to refine them.

“It has been noted by everyone and we also realize that our system of government purchases has to be improved because there are a lot of questions and non-compliances as for the use of particular law rules,” director of the Department for Government Purchases and Orders at the Ministry of Economic Development and Trade Borys Horbansky said.

According to Horbansky, electronic auctions are one of the first steps towards the improvement. He informed that the Ministry of Economic Development and Trade is going to start selecting operators to make government purchases at reverse electronic auctions in November after the government has adopted the new regulations with all the requirements for electronic auctions.

Horbansky informed that the ministry has already started receiving applications from those willing to become operators of electronic auctions, however, it is still impossible to have a full list of those who meet technical requirements since the regulations have not been adopted yet.

“The candidates for holding auctions are private companies, state bodies and representatives of Russian business. It is the evidence of readiness to make government purchases for regulation procedures,” Horbansky opines.

By the way, the official informed that the list of goods that will be purchased at electronic auctions has been already prepared and sent to executive bodies.

“These are the simplest goods and their list is still short. It will be continued with the development of electronic reverse auctions. This is stationary, office appliances, some furniture and cars,” the official said.

We remind our readers that at the beginning of July the Ukrainian parliament allowed state enterprises not to hold tenders when making government purchases. Besides, results of purchases do not have to be published in Visnyk Derzhavnykh Zakupivel (Newsletter of Government Purchases), which gives a possibility to hide their results from public.