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October 26, 2020

German Ambassador: Corruption combat in public procurement can lead to reduced burden on taxpayers

Romania must strive to combat corruption in public procurement, where huge sums of money from taxpayers’ contributions are wasted, so that it can implement a taxation policy based on reduced burden on taxpayers, says Germany’s ambassador to Romania Werner Hans Lauk.

“Sustainable combat of corruption must be carried out on all possible organisation levels, nationwide, regionally, locally, in towns and communes, everywhere there are public procurement contracts. As you know, huge sums of money are the subject of fraud or are wasted in the context of public tenders. (…) That is why the sustained fight against corruption in the area of public procurement is also the best manner to save taxes; it represents an important pillar for a moderate taxation policy, based on reducing the tax burden on taxpayers,” the ambassador told a conference on public procurement.

According to him, taxes are wasted instead of being rationally used where needed as a result of public procurement contracts signed by the signing authority with too expensive beneficiaries or with poorly performing ones.

Lauk also said that the phenomenon is not restricted to Romania, but it exists in a whole series of countries and it regards large infrastructure projects such as those for building motorways, concession contracts for local sanitation, and even those for setting up some bicycle lanes. “In fact, this bad management of resources brings damage to the community and to the economic development of the entire country. They are the cause of loss for active companies in Romania, both the local and the foreign ones, but mostly for the population, each one of us,” said Lauk.

In his opinion, for a modern state adhering to the rule of law to work to exist it must have proper legislation. “The good legislative framework represents the base of some transparent and fair processes of awarding public procurement contracts. Only this way can it be guaranteed that a state acts efficiently in the economy, and only this way can confidence and economic growth be built,” the German official also said.

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