Proposed Public Procurement Act to Cut Red Tape and Tackle Corruption  


29d1dda510c382eb074592cd065eedf228 November 2016, VG Intelligence Weekly Issue 32

A long-awaited series of crucial amendments to the Public Procurement Act (PPA) were adopted at a Cabinet session held on 24 November and sent to the urgent Parliamentary procedure with the hope of the new PPA being swiftly adopted and implemented by early 2017. Speaking about the PPA, Prime Minister (PM) Andrej Plenkovic (HDZ) said public procurement was one of the key areas in which the private and public sectors interact and, therefore, needed to be more efficient. The proposed act aims to decrease the administrative burden and increase the efficiency of public procurement procedures, thereby reducing opportunities for corruption. This will be done in two crucial areas – introducing the economically most beneficial bid as the sole criterion for the selection process, as opposed to the present system that encourages selecting the lowest bidder, and encouraging e-procurement.

The amended PPA was one of the victims of the collapse of the previous Government – it was adopted at a Cabinet session in early June, but then stagnated until recently elected PM Plenkovic gave wind into its sails when he announced reforms to public procurement, while outlining the strategic goals of his Government in mid-October. His newly appointed Economy, Entrepreneurship, and Crafts Minister Martina Dalic (HDZ) was given the urgent task to once again revise the act and incorporate EU Directives

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