Although a part of costs is also covered from European funds, most contracts are awarded through negotiations without participation announcement or through open auctions with only one offer, submitted by limited liability companies. Even in the case of single-bid auctions, institutions say they awarded the contract considering the lowest price.
Last spring, Prime Minister Emil Boc called on ministers to stop auctions to purchase cars or other goods that are not of vital importance. He said the Government was considering setting up a department to authorize purchases of office equipment for all ministries, from a common supplier and for the same price.
Previously, MEDIAFAX reported state institutions and companies purchased in the first four months of 2010 cars, laptops and mobile phones worth over EUR100 million and planned other payments amounting to EUR24 million, to bring total costs close to those reported in 2009.
The Government drafted a decision in May 2010 whereby Romanian central public institutions looking to purchase cars, computers, furniture, fuel, IT services, cleaning, insurance or air transport services will do so through a centralized system, via a new body under the authority of the Finance Ministry.
The draft decision has not yet been approved by the Government.
In April 2009, following negotiations with the International Monetary Fund on cutting public spending, the Romanian Government banned public authorities and institutions from purchasing cars, furniture and office equipment.
The ban also applied in 2010 and 2011. Even so, state companies and institutions bought last year cars, air conditioners, laptops, furniture, telecom services and mobile phones worth EUR175 million.
MEDIAFAX data show that state companies and institutions have spent about EUR200 million in 2011 on cars, laptops, furniture, air conditioners, mobile phones and telecom services.
According to the 2012 draft state budget, the sum allotted for such goods and services is higher by over EUR10 million.
The Romanian public procurement market represents about 15% of the country’s gross domestic product. The state, through its companies and institutions, is the most significant buyer.