ISSUES OF THE INSTITUTION OF LEGAL PROCEEDINGS FOR OFFENCES IN THE AREA OF PUBLIC PROCUREMENTS

Author
, assistant lecturer, Kharkiv, Pushinska, 77

In heading

 Law;

Signed print

 21.11.2017

Issues number

 2017 - № 4 (31)

Page

 156 - 167

Type of articles

 Scientific article

Code UDK

 346.546 Т. І.

ISSN print

 2411-5584

Abstract

 Problem setting. The article is dedicated to matters of collusion aimed at distortion of results of bids, auctions, and tenders. Insufficient legislative regulation of matters con cerned with legal proceedings and absence of legislative approval of key moments regarding corpus delicti cause this problem.
Analysis of recent research and publications. O. Bakalinska, Yu. Zhuryk, O. Kashtanova, M. Barsh, Z. Borysenko, O. Vozniuk, O. Kokhanovska, O. Melnychenko, O. Nechyporenko, Y. Udalov, V. Shcherbyna, N. Borsuk, etc. have considered some aspects of concerted practices in their scientific papers. Nevertheless, there is no complex research related to issues of prevention of emergence of anti-competitive concerted practices of economic entities at the time of holding tenders.
Formulation of objectives. An article purpose is to consider and do thorough analysis of the content of violations of competitive legislation in the form of distortion of results of bids, auctions, and tenders, to emphasize problematic matters in this area, and to propose ways of overcoming the disadvantages.
The main material presentation. Since anti-competitive concerted practices undermine functioning of a normal competitive environment in the market, a matter of identification, proof, and bringing a perpetrator to justice for anti-competitive concerted practices of economic entities is one of the most dangerous offences in the area of economic competition. Ascertainment and cessation of anti-competitive concerted practices of economic entities are among prior directions of functioning of the Antimonopoly Committee of Ukraine. Violations of competition rules and rivalry principles are reasons of discrimination of some or other participators of contests, bids, tenders, and auctions. They constitute a danger for existence of healthy competitive environment that undermines normal functioning of the market.
In order to provide effective and transparent holding tenders, to form a competitive environment in the area of public and government procurements, to prevent cases of corruption in this area, and to develop fair competition, the Parliament adopted the Law of Ukraine “On Public Procurements” in 2015 that establishes legal and economic frameworks of holding procurements of goods, works, and services for meeting needs of the country and a local community. Ensuring effectiveness of these procedures, namely procurement of goods, works, and services of the highest quality at the lowest price maintaining rules and principles of competition is the main purpose in the area of a government procurement policy. Unfortunately, the new Law “On Public Procurement”, which has improved a procedure of electronic bids, does not solve a problem regarding cessation of a considerable number of offences in the area.
Bringing the norms, which regulate the public procurement area, into conformity with requirements of the World Trade Organization and the EU Directives will enable to implement principles of openness, transparency, public control, which are the basis for prevention of corruption, in the national legislation.
Conclusions. Distortion of results of bids, auctions, and tenders is one of the forms of anti-competitive concerted practices. There are some disadvantages of legislative regulation of such practices. There is an urgent need to amend the competitive legislation, to overcome all disadvantages in the legislation regarding areas of public and government procurements and, as a result, to cease violations in this sphere.
Firstly, it is necessary to define concepts of “distortion of tender (bid, auction) results” as a type of violation of the competitive legislation. It is possible owing to thorough analysis of corpus delicti based on determination of an object, subject, and the mens rea of an offence. It is important to precisely indicate features of such offensive and a thorough mechanism of identification of an offence and bringing to justice.
Procedural peculiarities of investigation and proving offences in the form of distortion of tender (bid, auction) results are the next matter. Matters regarding application of evidences in the process of qualification of these violations, indication of facts that may be evidences in this case and ways for fixation of some or other evidences merit attention. Legislators also should specify and extend authorities of bodies of the Antimonopoly Committee of Ukraine.
Improvement of procedural peculiarities related to holding bids (tenders) is the latest matter. There are many gaps concerned with an offence such as distortion of results of bids (tenders, auctions, contests), which encompass absence of legislative approval of the main concepts of this area and procedural matters of investigation and holding the very procurement procedure. These gaps require determination and specification of all key moments and enshrinement in the legislation.
Short Abstract for the article
Abstract. Ascertainment and cessation of antitrust concerted practices of economic entities as one of the most dangerous offence in the area of economic competition are among prior directions of functioning of the Antimonopoly Committee of Ukraine. Distortion of results of bids, auctions, and tenders is one of the forms of anti-competitive concerted practices. There are some disadvantages of legislative regulation of such practices, particularly regarding identification of an offence, proof of guilty, and bringing to justice.

Keywords

 anti-competitive concerted practices, economic competition, bid, tender, procurement procedures, government procurements, public procurements, tender (price) offers, customer, bidder.

Reviewer

External reviewer

Article in PDF

 156

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14.11.2017