Relaxed procurement rules are enabling overpriced contracts and reduced competition, prompting calls for stricter oversight through a new directive.
The August amendment to the Public Procurement Act significantly loosened procurement rules for municipalities, raising fears of speculative practices and inflated costs. Purchases up to €50,000 are now virtually unregulated, and construction contracts up to €800,000 require just three offers from pre-selected firms, effectively eliminating competition.
The Stop Corruption Foundation has responded with a Model Directive on Public Procurement, aimed at smaller municipalities. The directive enforces transparency by requiring multiple quotes for smaller contracts, council approval for larger expenditures, and thorough record-keeping. Inspired by Bratislava’s stricter procurement guidelines, it seeks to prevent waste and restore public trust.
“Mayors are often awarding contracts without competition, sometimes for amounts equal to an annual budget. This directive helps councils limit mayors’ powers and increase oversight,” said Ľubomír Daňko of the Foundation.
Data from Transparex.sk shows a 65% drop in announced contracts over three months, with a 20% decline in financial volume. Experts warn that bypassing competition could inflate costs by 25-30%, potentially wasting hundreds of thousands of euros on large projects.
“These changes simplify processes but risk misuse of public funds. Transparency and control are vital to maintain citizens’ trust,” said ZMOS Chairman Jozef Božik. Lawyer Miroslav Cák added that municipal councils could adopt internal regulations to establish stricter procurement rules.
Michal Garaj from Bratislava City Hall advocates for broader competition: “Inviting more firms doesn’t require extra effort but ensures better deals.”
Adopting the directive offers municipalities a tool to counteract the risks of relaxed laws, safeguarding resources and enhancing governance integrity.
Source: Stop Corruption Foundation
