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Forum marks start of Chamber’s public procurement group
Public procurement is a significant issue for many BPCC members. Poland’s public procurement process is flawed and needs to be improved swiftly – not least to help absorption of EU funds in coming years.
The BPCC has set up a Public Procurement special interest group to form a regular forum at which representatives of the Polish government can meet to talk frankly with and listen to BPCC members about their concerns in this area.
The initiative was launched at a BPCC/BT/Control Risks forum in March, when concerned members met with senior public sector representatives to discuss the scope of the problem (late notification of tenders, technical specifications that favour one bidder, bidders from other EU states disqualified on trivial technicalities, the seemingly-endless round of appeals) and offered solutions to improve the process.
The forum’s first session gave a platform for the public sector to set the scene. Robert Dzierzgwa from the Ministry of Regional Development put the issue into the context of the largest transfer of money from the EU’s central budget to any Member State. “Poland will be receiving €67.3 billion from Brussels between now and 2015. The money has to be well spent to deliver the outcomes expected by Poland and the EU. There are two dangers – one, that the money will end up in the wrong places. Two, that the checks and balances to prevent that from happening will be so restrictive, that funds earmarked for Poland’s development will return to Brussels unspent.” One issue worrying delegates was that of ‘in-house tenders’, where a public sector body – such as a local authority – can avoiding putting a particular piece of work out to public tender because it is to be carrying out by a unit of that body. The European Court of Justice has ruled (largely as a result of pressure from trades unions protection public sector jobs) that even if there is a percentage of private sector capital involved in the ‘in-house’ entity, the work can go ahead without a tender notice.
Sorana Parvulescu and Hana Lesenarova from Control Risks outlined how the potential for corruption within the public procurement, and the steps that a private-sector body should take to minimise the risk of the tender slipping away for the wrong reasons. Based on Control Risks’ wide experience in the CEE region, the presentation focused on case studies of how often public tenders were skewed to favour insiders and what foreign investors can do to level the playing field.
“Poland’s rather dismal score on Transparency International’s Global Corruption Perception Index is largely based on distortions within the public procurement system. With a thriving free media and a business environment clear of organised crime, it is at the interface between the private and public sectors that corruption has been perceived to exist,” said Michael Dembinski, the BPCC’s head of policy.
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“The forum was extremely encouraging as it showed clear signs that the Office of Public Procurement (UZP) is open to dialogue with the foreign investor community, and is prepared to listen to suggestions as to how best to improve procedures. The professionalisation of public procurement is essential. The UK’s experience – the Chartered Institute of Purchasing and Supply – a splendid example of best practice – needs to be transferred to Poland.
“This was not a one-off forum, rather a prologue to an ongoing special interest group consisting of our members who wish to make their voice heard and to influence improve the workings of the public procurement system in Poland”.
The first regular meeting of the BPCC’s Public Procurement Group took place at the British Embassy’s Commercial Section in Warsaw on 20 May, and was attended by 24 members representing the construction, transporting, consultancy and legal services sectors. Speakers were Wojciech Hartung, head of the European Law Department at the UZP and Grzegorz Lang, the Deputy Director of the Economic Regulations Department at the Ministry of the Economy. A Memorandum prepared by the Chamber as a summary of the Forum’s proceedings was presented to the UZP and to the Ministry of the Economy. The text of the BPCC’s Memorandum on Public Procurement is available on the Chamber’s portal (www.bpcc.org.pl/public_procurement_memorandum).
Geraldine McDermott, First Secretary Commercial at the British Embassy in Warsaw, told delegates how the Embassy can help with document compliance. When submitting documentation with a tender bid, bidders have to attach certificates stating that they are up to date with their tax, ZUS and health fund payments, and certificates that their directors have a certificate stating a lack of criminal convictions. Such certificates do not exist in the UK. Equivalents issued on behalf of the bidder by UK authorities are often questioned by the Polish public sector questions the authority of the issuer of the document. Ms McDermott explained how the Embassy can help in verifying the validity of a British equivalent certificate.
The next meeting of the BPCC’s Public Procurement Group takes place on 3 July at the and will focus on the issue of corruption. A speaker from Transparency International will put Poland into a global context in this regard and will offer practical advice about winning tenders without resorting to unethical practices.
* More information and details of forthcoming BPCC work in the public procurement area from: Marta Rynkowska (
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