Ukraine Plans to Create a “Blacklist” of Unscrupulous Contractors: What the Initiative Entails
7 July 21:11
The State Audit Service of Ukraine is pushing for the introduction of a “blacklist” of unscrupulous counterparties and contractors who have violated the terms of government contracts. Alla Basalaeva, head of the State Audit Service, made this statement in an interview with the media. "Komersant Ukrainian" reports this, citing the State Audit Service’s press office.
Although the Antimonopoly Committee compiles a list of violators and synchronizes it with the Prozorro e-procurement system, a “toxic” company “still has the opportunity to sign a direct agreement with the customer, bypassing the ‘red flag.’”
“Therefore, as Alla Basalayeva noted, for its part, the State Audit Service insists on introducing a more effective ‘blacklist’ of contractors modeled after the EU’s Early Detection and Exclusion System,” the report states.
This is standard European practice. When someone attempts to defraud the state—for example, by violating procurement procedures, failing to fulfill a contract on time, or delivering substandard products—they should be placed on a “blacklist.” Then suppliers and contractors will certainly realize that fulfilling contracts to a high standard is more profitable, emphasized the head of the State Audit Service.
Alla Basalaeva also noted that, under the new public procurement law recently signed by the President of Ukraine—which was developed with the participation of experts from the State Audit Service—a “blacklist” of violators of production localization requirements will now be implemented. Those who submit inaccurate information about the percentage of domestic content in the production of goods will be added to this list.
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