KYIV. Nov 10 (Interfax-Ukraine) – In October 2023, the ProZorro platform published information about 884 cases of goods procurement worth UAH 6.5 billion, which were subject to localization requirements, while violations of this requirement were detected in 404 procurement cases (45%), according to research data from the analytical center CMD Ukraine.
As reported, in September this share also was 45% of the total number of publicized procurement (or 244 cases).
According to research data published on Facebook on Friday by Deputy Chairman of the parliamentary committee on economic development Dmytro Kysylevsky, in October, 206 violations were recorded in announced procurement cases (161 in September), 126 in completed ones, i.e. signed contracts (56), 72 – in completed contracts (27).
The largest number of violations (265) was identified in the procurement segment of municipal and special equipment, 105 – in power engineering products, and 34 – in the procurement of urban passenger transport.
The top five largest violators among customers in October included Ukrnafta (72.95 million UAH), NNEGC Energoatom (69.48 million UAH), Ukrgazvydobuvannia (UAH 51.34 million), the Main Directorate of the State Emergency Service in Kyiv (UAH 30.45 million), and Special Purpose Rescue Squad of the Main Directorate of the State Emergency Service in Kyiv region (UAH 30.35 million).
Kysylevsky recalled that the most common violations in such public tenders are: lack of localization requirements in the procurement announcement; failure to comply with the requirements of the law on the degree of localization; lack of information on the degree of localization of purchased goods; absence of requirements in advertisements for a certificate of conformity and VIN codes for wheeled vehicles.
“Some suppliers also use tricks and outright fraud in order to avoid or falsify localization. There are such precedents for the supply of Turkish buses. I will do everything possible so that law enforcement agencies become interested in such cases,” the MP wrote.
He recalled that the list of violators is submitted for response to the Ministry of Economy, the State Audit Service and other relevant bodies.
According to CMD Ukraine, if all goods in the mentioned procurement cases had a minimum localization level of 15% established by law for the current year, this would provide more than UAH 1.5 billion in tax revenues to budgets of all levels, as well as a corresponding multiplier effect for the economy.