These conclusions are stated in an official document obtained by MEDIAFAX, which contains information regarding public procurement made by state institutions and companies in the last quarter of the year.
According to the document, public authorities with the most procurement procedures started in the last quarter of the year are: forest administrator Romsilva (133 accepted public procurement procedures), thermal power producer CE Turceni (54) natural gas producer Romgaz (50), passenger railway company CFR Calatori (47), thermal power producer CE Craiova (46), railway administrator CFR SA (45), the National Patrimony Institute (42), power grid operator Transelectrica (41), national roads authority CNADNR (38), coal mining company CNH (34), mining company SNLO (32), energy producer Nuclearelectrica (31).
The list also includes: hydropower producer Hidroelectrica (14), the Defense Ministry (12), the Interior Ministry (11), the Bucharest National Airport Company (10), power producer CE Rovinari (9).
Many of these companies register historic debts and are monitored by the International Monetary Fund.
The value of auction paperwork submitted over the past three months, which received authorization to be financed from the state budget, rise to about 5 billion lei (EUR1.16 billion), of which RON1.97 billion for works and RON1.92 billion for goods and services (plus the sums to buy goods and services through direct negotiations)
Regarding European funds, the ratio is different. The difference between investment expenses and goods and services expenses is significant, reads the document.
The analysis shows that, RON1 billion in EU funds was spent on investments and only RON240 on goods and services.
The document describes Romsilva as “an institutional anomaly”, as public procurement is decided locally by forest departments that are not legal entities. The central department launches public procurement procedures in their name, without any previous analysis regarding needs and priorities.
The conclusion regarding Romsilva is that “it is the major buyer through the Public Procurement Electronic System; it buys everything from thumbtacks to ammunition.”
“Unfortunately, the state spends more on goods and services than on investments,” people close to the matter told MEDIAFAX. They pointed out that public procurement should be carried out at a central level.
Data presented by MEDIAFAX show that in most cases public procurement is made through direct negotiations or single-bid auctions.
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.
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.
An analysis made by financial daily Ziarul Financiar shows the state will increase in 2012 (a general and local election year) goods and services expenses by 11.2% compared with 2011, and will spend RON31.7 billion (about EUR7.4 billion, 15.4% of total budget spending) to buy all sorts of goods.
In 2008, an election year, the state’s goods and services expenses reached EUR9.1 billion. (EUR1=RON4.3045)