Canada has been working on a 12-point plan to implement anti-corruption measures as part of its emergency government contracts. These new rules are meant to prevent corruption and protect the public interest, with some experts suggesting blockchain could be used in future projects.
The “preventing corruption in public procurement” is an article that discusses the idea of preventing corruption in public procurement. This article looks at a dozen emergency government contracts and how they are being done to prevent corruption.
A dozen emergency government contracts are being investigated by anti-corruption officials.
The Office of the Anti-Corruption Prosecutor will look into 13 emergency contracts issued by Pedro Sánchez’s government in 2020. Alejandro Luzón, the department’s head prosecutor, has consented to launch various investigations into whether the seven hired firms have any ties to former ministers Jose Luis Abalos Y Salvador Island, Nadia Calvino, the First Vice President of the Government, and Peter Sanchez, the president. It concerns 11 contracts for the procurement of medical supplies during the commencement of the pandemic, as well as two additional tenders unconnected to Covid-19, totaling 326 million euros.
The PP of the Madrid Assembly On March 10, he filed a complaint with the Anti-Corruption Prosecutor’s Office, alleging crimes of prevarication, forbidden conversations with officials, influence peddling, and misappropriation of public money in these 13 contracts. All of this comes after the same Prosecutor agreed to initiate proceedings on the Community of Madrid’s award for the purchase of FPP2 masks, which the regional president’s brother, Isabel Daz Ayuso, would have mediated.
After analyzing the letter, the Chief Anti-Corruption Prosecutor issued a directive on Friday agreeing to initiate seven preliminary lines of investigation (that is, they will not be prosecuted) to determine if the contracts are unlawful. Furthermore, Luzon emphasizes in his decision that there is no need to examine any member of the government -who has been approved by the Supreme Court- for the time being since there are no signs of their involvement in the contracts.
With all of this, Luzon hires prosecutor Luis Pastor Motta to oversee five inquiry procedures involving medical supplies to address the coronavirus health issue. There are 11 contracts signed with five firms, with the “similar thread” being that each company has a “connection” with “various public agencies” and “the absence of verification of the convergence of the minimal conditions for contract formalization.”
Prices that are “excessive” and a lack of expertise
According to the decree, the PP criticized Business Management and Support Solutions for having a contact with the then-Minister of Transport, Jose Luis Abalos, based on journalistic material. Similarly, it implies that this company’s operations are active. It has nothing to do with the contract’s subject matter—the provision of masks—and the fact that, although its revenue in 2019 was 0 euros, it increased to 53.13 million euros in 2020 thanks to direct public awards. Similar occurrences show the issue with FCS Select Product. Despite the fact that its social activity was the creation of marketing materials for the alcoholic beverage industry, the award was given due of the cordial connection between the administrators and the previous Minister of Health, Salvador Illa Roca. It also points out that their revenue in 2018 was less than one million euros, compared to 263.1 million euros in the year of the epidemic.
Regarding the companies Member of the Tribe; Hyperin Business Group; Y Weihai Textile Group Import&Exportthe Prosecutor’s Office points out that the ‘popular’ does not relate them to any member of the Government, but they do emphasize that in their role “there is no correlation with the supply of medical devices”. In addition, he adds that in the case of the first company, Health not only paid an “excessive price” of between “25% and 500%” for the unit of gloves compared to what is offered by other providers; but rather advanced 30% of the total amount to be paid and has not recovered it after the contract was terminated due to non-compliance with the material delivery deadline.
The same would have happened with Hyperin Business Group, to which Health advanced the total amount of the contract for the acquisition of invasive mechanical ventilation devices, which reached the sum of 3,310,556 euros, although the company still has to reimburse 1,801,481, 74 euros for breach of contract. As for Weihai Textile Group Import&Export, the Anticorruption decree states that the price paid by the supply of 500,000 disposable gowns was also “excessive”since the unit was set at 16.7 euros, compared to other providers whose offers were around 0.32 euros and 0.27 euros.
“Contextual social transcendence”
In light of this, Anticorruption relies on Supreme Court precedent to assert that “whether the contracts for the procurement of sanitary material criticized, as unsuccessful or fraudulent, were adjusted to the conditions and assurances required by administrative contracting” must be addressed. In this sense, it extrapolates to this case what was already stated in the decree opening proceedings for the contract linked to Daz Ayuso’s brother on the origin of carrying out proceedings “that, without being initially directed against natural or legal persons, allow coConfirm or rule out criminal significance of the facts denounced.”
All of this is due to the “importance of the proper and regular functioning of the public administration in accordance with the Constitution’s values system” and the “undeniable social significance of the setting in which the events stated in the complaint occur.” However, the PP also issued a warning concerning two additional contracts involving Nadia Calvino and Pedro Sanchez that have nothing to do with the epidemic. The top anti-corruption prosecutor, Alejandro Luzón, will examine these facts immediately, stating in his decree that “while the relevant legal conditions are different, the action parameters of the Prosecutor’s Office in its investigative role are not.”
According to the decree, the PP challenges the contract for the Social Security digital image and online reputation management service made with the firm Yellow Pages Digital Solutions (now Beedigital), since her husband is the marketing director of the same. It goes on to say that the award was made while the firm owed the government 1.6 million euros in debt, and that the deal was renewed in 2020 when the debt was still at 884,000 euros.
Finally, the complainants mention 14 donations he got from Playbol Plastic Industries between February 18, 2020, and May 25, 2021, for the same’s link with Sánchez’s parents. “According to Anticorruption, they sold the assets, goodwill, and machinery of the firm Playbol SA in 2018, while continuing to serve as administrator and proxy.” Likewise, the aforementioned firm remains the owner of the warehouses where the transferred commercial activity is carried out, for which it gets a yearly lease payment of 156,000 euros.
Corruption in public procurement pdf is a document that provides a detailed overview of the problem and how to avoid it. The document also includes a list of 12 emergency government contracts that were investigated for corruption. Reference: corruption in public procurement pdf.
- examples of corruption in public procurement
- ways to reduce tender corruption
- corruption in awarding tenders
- indicators of corruption in procurement
- causes of corruption in public procurement