Many people complain that the UK public sector is too stringent and rule bound when it comes to procurement, this article shows that it is better than what could happen.
A recent audit of the Czech Defence Ministry's financial management unveiled 54 mistakes and unusual circumstances in connection with
tenders, in which some bidders might have been put in advantage, the ministry told journalists yesterday.
Five of the ministry's orders were overpriced by about 100 million crowns altogether, the audit showed.
Every fifth
tender was not won by the cheapest bid.
Defence Minister Alexandr Vondra (Civic Democrats, ODS), who has held the post since July and who initiated the audit, said the goal of the audit was not a thorough examination of all circumstances of tenders. The most serious surfacing cases will be further checked.
The results of the audit are to be handed over to the police.
"The Defence Ministry's acquisition system suffers from a number of problems and shortcomings, from placing unprepared orders via preferring certain suppliers, to, let's say, cold-blooded circumventions of law on public orders," Vondra said at the press conference.
At present, the check of about a half of the orders placed by the Military Housing Fund and a half placed by the Military Building and Accommodation Administrative, is complete. In all controversial cases, the purchase of services for real estate operation is involved.
The daily Mlada fronta Dnes (MfD) yesterday writes that the Military Housing Fund markedly overpriced reception and cleaning services at the hostels it runs.
Vondra's secretary Jan Vylita said the ministry has abrogated the contracts based on manipulated tenders.
"We are abrogating further ones and we'll launch new tenders. We want to stop the chance for anyone using the ministry as a loaning bank," said Vondra.
Czech military orders have been for a long time criticised as opaque and often overpriced. Doubts have mainly accompanied the purchases of military equipment and real estate construction and management.
The planned construction of new pavilions in the Central Military Hospital in Prague has raised doubts as well.
Vondra also released partial results of ongoing check of the purchase of weapons and services by the military in 1998-2010.
The auditors checked a total of 55 companies that supplied cars, planes and communication equipment, arms, optical devices, electronics etc.
Vondra said the military lacks a long-term plan of acquisitions to define the necessary purchases for 15 to 20 years ahead. The existing long-term military vision from 2008 does not include a plan of acquisitions, Vondra said.
An internal audit has been carried out by the ministry employees and required no additional costs from the ministry. Another three forensic audits have been made by private companies and cost 1.8 million crowns altogether, Vylita said.