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COUNTERACTION TO CORRUPTION IN PUBLIC PROCUREMENT BY MEANS OF RED FLAGS DURING COVID-19

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PDF: Author(s): Feofilova T. Yu., Yarilova O. E.,
Number of journal: 2(55) Date: May 2021
Annotation:

In the context of the COVID-19 pandemic, the risks of corruption are increasing due to the introduction of a special public procurement procedure that allows purchases from a single supplier. As the current global health emergency calls for urgent action, corrupt actors can take advantage of special contract regulation to collude with contractors and speed up procurement and disbursement processes. As one of the most effective ways to counter corruption risks should be considered the introduction of the so-called red flags used by the state control systems of various countries. The idea behind the red flags approach is that public procurement is supposed to be an open, competitive process. Any deviation from openness and competition, by contrast, may indicate that public officials are manipulating the process in order to steer contracts to their friends. By analyzing big datasets of tenders and contracts, we can spot systematic deviations, or red flags, and thereby gather an evidence base with which to hold officeholders to account. The introduction of red flags will reduce the number of corruption offenses at auctions, which in turn will lead to savings and increase the efficiency of the use of public resources. The aim of the study is to identify the most common red flags that signal the risks of corruption during the pandemic, as well as the way they are implemented in the public procurement monitoring system. The authors analyzed the red flags used in foreign projects. Based on the results of the analysis of foreign projects, red flags are outlined, the use of which is advisable in identifying signs of corruption in the domestic contract system during the COVID-19 pandemic. The main ones are: short tender periods, a small number of bidders, contracts being concluded on a non-competitive basis. It is proposed to adapt the European TI Red Flag Tool for the implementation of red flags in the public procurement monitoring system.

Keywords:

procurement, public contracts, contract system, corruption, counteraction to corruption, corruption crimes, red flags, indicators of corruption risk, COVID-19, monitoring of public procurement.

For citation:

Feofilova T. Yu., Yarilova O. E. Counteraction to corruption in public procurement by means of red flags during COVID-19. Business. Education. Law, 2021, no. 2, pp. 194—200. DOI: 10.25683/VOLBI.2021.55.279.