Record fine for contracting authority confirmed
The company awarded public procurement for the cleaning up of environmental damage – removal of gas-oil drilling rigs and probes in a negotiation proceeding without publication, i.e. without open tendering. The total value of the contract was in excess of 4 billion crowns.
The mistake given was made by the former liquidator of the state company, who was removed from office in mid-July 2007. The newly appointed liquidator in his statement as part of the administration proceedings admitted that in this case the legal requirements for the use of negotiation without publication had not been met. Commenting on the contract issuer’s approach in the case in question the Office said that the purpose of the Act is to secure a framework for the efficient expenditure of the contract issuers’ financial resources, which can only be achieved in a transparently conducted contract issuing procedure, i.e. by an approach securing the maximum level of competition, which is the basis for gaining the most favourable conditions for the contracting authority. In announcing an open, close or negotiated proceeding with publication the contract issuer announces to an unlimited number of suppliers his intention of awarding a public contract in this contract issuing procedure. In view of the fact that the contract issuer used for awarding a public procurement a negotiated proceeding without publication, in which the intention of the issuer to award a public procurement is not subject to the requirement for publication, he caused the tender proceedings to be used by only the three suppliers who had been addressed (of which 1 refused to take part in the proceedings).
Highest fines imposed by the Office in the area of public procurement
Contracting authority | Year | No. of proceeding | Fine (in crowns) | In force |
Moravské naftové doly, s.p. | 2007 | S195/07 | 5 000 000 | YES |
City of Zlín | 2007 | S 395/06 | 3 000 000 | YES |
City of Praha | 2002 | S 155/02 | 715 000 | YES |
City of Hradec Králové | 2005 | S 249/05 | 700 000 | YES |
Dopravní společnost Zlín-Otrokovice (Public transport company Zlín-Otrokovice) | 2005 | S 048/05 | 500 000 | YES |
Ministry of labour and social affairs | 2006 | S 213/06 | 500 000 | YES |
City of Karlovy Vary | 2007 | S 169/07 | 500 000 | NO |
External Relations Department of the Office
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