The Ministry of Environment can improve the management of public procurement

10/17/2003 | 12:00 AM

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TALLINN, 17 October 2003 - The SAO audited the activities of the Ministry of Environment relating to the management of public procurement in the field of environmental projects. This Ministry has organised the greatest number of tendering procedures – for example, in 2002 the number was 121. The SAO finds that the Ministry has done quite well in this regard.

However, the auditors noted come shortcomings in the justification of initiated procurement procedures. An example: in the opinion of the SAO the spending of 583,321 kroons on informing about the air quality in the central part of Tallinn under a contract awarded in 2002 was not justified.

Also, procurement procedures had been initiated for granting funds to companies dealing with environmental issues. This means the said procedures were used to finance expenses, which the companies should in fact bear themselves. An example here is the tendering for updating the quality systems of the companies Tartu Keskkonnauuringud and Eesti Keskkonnauuringute Keskus. The companies should have paid for this work themselves. The Ministry stated that in return the said public undertakings provided the necessary environmental services cheaper.

In addition, the Ministry was not always able to organise its activities in a way, which would not compromise the impartiality of officials. The Ministry chose the Finnish company Indufor OY, which is a shareholder of an Estonian company Silva Reval, to prepare the Forestry Development Program. The same person, who was responsible for the procurement as an employee of the Ministry, was a Member of the Management Board and a shareholder of Silva Reval.

Furthermore, the SAO notes that the proper implementation of a large number of procurement projects indispensably calls for the establishment of a clear allocation of functions and the determination of persons responsible. The Minister accepted the recommendations of the SAO, notifying, among other things, that measures are taken to improve the substantive justification of invitations to tender.

Sven Soiver
Press Representative of State Audit Office
Telephone: (372) 640 0787
GSM: (372) 53 414464
E-mail: [email protected]

  • Posted: 10/17/2003 12:00 AM
  • Last Update: 10/2/2015 4:08 PM
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