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April 16, 2021

State wastes EUR 200 M annually on direct negotiations, one-bid auctions

Public institutions and companies spend an annual EUR 200 M on purchasing cars, laptops, furniture, A/C, cell phones and telecom services and the majority of purchases are made by direct negotiations or auctions with a single bidder, according to a Mediafax study. Although some of the acquisitions are covered out of EU funds, most contracts are awarded by negotiation without the prior publication of a call for participants, justified by invoking “extreme emergency”, technical criteria which, allegedly, only one supplier meets or the protection of exclusivity rights, or by open auctions in which, invariably, only one limited liability company files a bid. The set-up of the “command centre” for acquisitions was prepared as early as May 2010 in the shape of a bill for a resolution which stipulated that acquisitions made by central public institutions should be run in a centralised system.

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