State supervision

Ministry of Finance carries out supervision on the compliance with the Public Procurement Act and legislation established on the basis thereof solely for the protection of public interest. Supervisory proceedings are not carried out for the purpose of verifying the practicality of the actions of the contracting authority or entity or assessment of the effectiveness of its decisions and steps.
 

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A supervisory notice may be submitted by anyone, regardless of whether the occurrence described as a breach infringes upon the submitter’s personal rights or not.

As a result of supervision, before a public contract or framework agreement is awarded, the Ministry of Finance may issue a precept to the contracting authority or entity to declare the public procurement invalid where the contracting authority or entity has breached the requirements provided for in the Public Procurement Act or legislation established on the basis thereof and circumstances that do not allow for continuing the public procurement become evident.


Before a public contract or framework agreement is awarded, the Ministry of Finance has the right to make mandatory precepts aimed at eliminating a breach of the Public Procurement Act and legislation established on the basis thereof, provided that the public procurement can be continued when the breach is eliminated.


Case-based supervisory proceedings are accompanied by a prohibition to award a framework agreement and public contract until the completion of the supervisory proceedings or until the precept is complied with in the event that a precept aimed at eliminating a breach has been made to the contracting authority or entity. Public contract or framework agreement awarded in contravention of this prohibition is invalid.
In the supervisory proceedings, the Ministry of Finance has the right to give recommendations and guidelines for improved adherence to the law and for prevention of breaches.


Supervisory proceedings are not commenced or the commenced supervisory proceedings are terminated where:
1) the submitter of a supervisory notice has the right to file a request for review concerning a breach with the Review Committee;
2) the breach is being adjudicated by the Review Committee or a court, except in the event that a breach becomes evident which the Review Committee has informed the Ministry of Finance of, or when a decision made by the Review Committee or a court, which gives a legal assessment of the circumstances of the breach and terminates the proceedings, has entered into force;
3) the details referring to a breach are not sufficient for giving rise to a reasonable doubt or if there is no breach;
4) the public procurement has ended.
Supervisory proceedings do not need to be commenced where:
1) the submitter of a supervisory notice has not exercised the right to file a request for review with the Review Committee concerning a breach;
2) taking account of the circumstances of the breach and other factors, there are no overriding public interests to carry out supervisory proceedings.


The Ministry of Finance may commence supervisory proceedings by way of a sample-based inspection regarding the results of which a written inspection report is drawn up. Written inspection reports are published on the website of public procurements.

 

 

Last updated: 19 June 2018