Amid the permanent threat to economic activities caused by quarantine restrictions during the COVID-19 pandemic, the government of Ukraine has simplified the procedure of procurements aimed at preventing emergence and spread of the coronavirus disease. On the one hand, spending agencies have found it possible to promptly and without any competitions to buy up necessities for hospitals and other social institutions. On the other hand, there are corruption risks of public procurements at inflated prices in comparison with private market.
The problem of ineffective budget expenditures is particularly acute in territorial communities along the ‘contact line’ in Donetsk and Luhansk oblasts where each saved hryvnia helps to buy up more necessary goods for patients, medical staff and local population in general.
According to bi.prozorro, tender participants include 534 customers which, conducting COVID-19-related procurements in Donetsk oblast, have conducted 7.2 thousand of procurements in the amount of 1.2 billion hryvnias. Besides, 131 customers that conducted procurements in Luhansk oblast have conducted 2.5 procurements in the amount of 340 million hryvnias. According to analysts of Youcontrol, Donetsk and Luhansk oblasts belong to Top 5 oblasts that overpay during procurements. For example, a chief medical officer at one of the local hospitals inflicted damage to the state budget in the amount of more than 600,000 hryvnias by buying up seriously overpriced goods.
Considering these preconditions, the StateWatch team made a decision to launch the web portal Market Research Tool (MRT).
The main value of MRT is an ability to effectively manage budget funds in the sphere of public procurements due to the possibility to check suppliers with positive backgrounds and the best value for money.
We will launch the web portal MRT and present it for spending institutions in communities of Donetsk and Luhansk oblasts.
The project Market Research Tool (MRT), which has won the national competition of innovations EastCode 2021, being technically administered by Center42, is implemented by StateWatch NGO within the United National Recovery and Peacebuilding Program with financial support of the Danish, Swiss and Swedish governments.
The United Nations Recovery and Peacebuilding Program is implemented by four UN agencies, namely the United National Development Program (UBDP), United Nations Entity for Gender Equality and Empowerment of Women (UN Women), United Nations Fund for Population Activities (UNFPA), United Nations Food and Agricultural Organization (FAO).
The program is supported by twelve international partners, the European Union (EU), European Investment Bank (EIB), US Embassy in Ukraine, as well as governments of Denmark, Canada, Netherlands, Germany, Norway, Poland, Switzerland, Sweden and Japan.