NGO: People Convicted of Corruption, Fraud Mustn’t Participate in Public Procurements

Transparency International Georgia says that despite positive moves in Georgia’s public procurement, the system still requires further improvement, as people convicted of corruption or fraud are still able to participate in public procurements.

The NGO says that currently blacklisting remains the only way of preventing such problems.

“The blacklisted companies are not allowed to participate in public procurement for a year. However, blacklisted companies are allowed to establish other companies and participate in public procurement.

“Other companies who are not blacklisted can also subcontract them. Bad subcontracting practice is another problem for Georgia’s public procurement,” TI Georgia says.

The NGO says that unlike good international practice, individuals convicted of corruption and fraud are no restricted from participating in Georgia’s public procurement, even in case of breaking procurement legislation.

The NGO says that in Georgia companies (for instance, Green Service, Geo-Group and Ibolia) linked with former or acting public officials convicted of corruption in public procurement receive millions of GEL.

“This contradicts with good international (including European) practice in regulating public procurement and recommendations of international organizations.

The NGO says that it is necessary to amend Georgia’s public procurement legislation which will restrict the participation of those companies in public procurement, owners of which were convicted of fraud or corruption in public procurement. This restriction should last for at least the period when a status of conviction is active.

TI Georgia states that public contractors should be prohibited to sign subcontracts with such companies the owners of which were convicted of fraud or corruption.