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EY for Min. of Georgia: Not to show oligarchy in the announcement of tenders

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ΕΥ για Υπ. Γεω ργΙας: Να μην επιδεικνyει ολιγω&rho ;α στην προκorρυξη διαγωνισμoν

Not to show oligarchy in the announcement of tenders with a direct social impact such as those concerning solid waste management, and to avoid, "due to his own wrong handling", proceeding with the adoption of practices such as the announcement of tenders with an expedited procedure, recommends among among others the Audit Service at the Ministry of Agriculture, Rural Development and Environment in its latest Special Report on the Audit of Public Tenders and Public Contracts of the Ministry.

The report, according to the Audit Service (EA), concerns the control of public tenders and public contracts for works, supplies and services, noting that this control is carried out, on a sample basis or following a complaint or information, or in the real time of the procedures, and/or subsequently after the proceedings have been completed.

One of the projects examined by EY, is the study, construction and operation of the waste treatment and disposal facilities of the provinces of Larnaca and Famagusta (Kosios OEDA Unit). Among other things, it refers to "incorrect handling" of the Water Development Department (TAW) regarding the announcement of a tender for a new Contractor, who would undertake the upgrade and operation of the Kosi OEDA Unit, and that  "the expedited process", to announce an open tender, "inevitably led to the failure to develop sufficient competition since only two tenders were submitted".

It is also noted that, in relation to the tenders for the provision of consulting services for management and supervision of the two contracts related to the construction of B’ Phase of the HYT of Kosii and Pentakomos, "both of which were announced through an open accelerated procedure and a single offer was submitted, in any case, by the same tenderer to whom both contracts were awarded, our Service expresses, in advance, the reservations in terms of the effective management and supervision of the two contracts at the same time, since most of the Key Experts that make up the two Project Teams are common”.

For the study, construction and operation of a Unit of Integrated Solid Household Waste Management Facilities in the Limassol district (OEDA Pentakomou Unit), it is stated, among other things, that A’ Phase of the WWTP was expected to be sufficient for the burial of treatment residues for the first twelve years of the Unit's operation, i.e. until the end of 2029, however, "as a consequence of the Contractor not meeting its contractual obligations, the available capacity of the basin A’ HYT phase decreased to a critical level and was expected to be saturated around the end of 2022, making the immediate design and construction of B’ Phase of the HYT».

It is reported that while the EY, the General Accounting Office, and the Competent Public Procurement Authority (AADS) disagreed, the Ministry wished to proceed with a direct assignment of the study and construction of B’ Phase of the HYT to the existing Contractor. According to the report, the announcement of the open tender was further delayed and finally took place at the end of March 2022, with a deadline for submitting bids in mid-May 2022. Furthermore, despite repeated reports by TAU that the new cell would have to be built urgently, with inclusion of a provision in the contract for additional remuneration (bonus) to the Contractor for earlier completion of the Project, the contract was finally signed on 27.7.2022, i.e. two and a half months later, it is added.

It is also reported that the bulky waste shredder was installed at the OEDA Pentakomos Unit in mid-2017 and remained out of service for a year and a half, while it was only used for nine months before it was destroyed by fire. "Our Service expressed its surprise in relation to the study shown by TAU, as the Employer of the contract, to proceed with a negotiation process with a specific economic operator for the purchase of a new shredder and the sale to the same economic operator of the existing damaged one, as if he was responsible for the incident and the obligation to restore the fire damage, releasing the Contractor from his contractual obligations/responsibilities», it states.

He also said that they also disagreed with the fact that TAU ​​entered into negotiations with the insurance company, accepting the payment of an amount, "which he considered as not representative of the shredder's residual value, as according to the terms of the Operating Contract, the issue of insurance coverage was the sole responsibility of the Contractor. The Legal Service, with its relevant opinion, essentially confirmed the positions of the Service, it is reported.

EY also reports problems with the construction and operation studies of various wastewater treatment plants such as deficiencies in tender documents, "serious problems" to the smooth start of the construction contract due to successful appeals, delays, and untimely reaction on the part of TAU in cases of problems regarding the Contractors.

Regarding the issue of purchasing services for the collection, transport, processing and final disposal of Category 1 or 2 animal by-products, it is stated in the report that the Veterinary Services, “by their actions, actions and/or omissions, have not succeeded until today to release the public from the contract for the collection, transport, processing and final disposal of animal by-products, which was initially awarded in 2004 and has since been awarded and/or extended with the same Contractor, with the latest contract amounting to &euro ;1,452,000 per year, valid until 2023».

EY also refers to a tender for the supply and five-year maintenance of four double-cab vehicles. It is noted that in September 2021, the Department signed a contract worth €119,000+VAT for the supply and five-year maintenance of four double-cab vehicles, "which was 19% higher than the estimated cost of the tender", and it was found that, while the due to the fact that vehicles were delivered with a delay of eight days, the Contractor was finally cut off for only five days of delay, without obtaining the required approval from the relevant body.

EY recommends, among other things, that the Ministry/TAU “do not show sloppiness in the announcement of tenders with a direct social impact such as tenders related to solid waste management, and to avoid, citing the narrow time frames that arise due to their own of incorrect manipulations, to proceed with the adoption of practices such as the announcement of tenders with an accelerated procedure, which demonstrably leads to the failure to ensure a sufficient breadth of participation and the failure to develop conditions of healthy competition, which does not ensure the public interest.

It also recommends that they make “every possible effort” to always act in compliance with the national legal framework and the European Directives in relation to the management of mixed household waste to avoid financial penalties from the CJEU and safeguard the interests of the State. Additionally, to ensure compliance with the provisions of the public procurement legislation and the terms of the relevant contracts.

Before receiving any Project, says the report, TAU "must faithfully apply" the delivery/receipt procedures in order to immediately identify existing problems and poor workmanship and promote their resolution with the appropriate actions. In addition, TAU, before the announcement of tenders for the Projects, to check the completeness/completeness of the studies and the correctness of the specifications included in them, he notes.

In cases where during the execution of a public contract, the Contractor materially violates the terms of his contract, the contracting authority should take all necessary measures in a timely manner, in accordance with the provisions of the contract and the applicable legislation, to ensure the smooth completion of the contract and the safeguarding of the public interest, recommends still the report.

Finally, it asks TAU, as the contracting authority, to proceed in a timely manner with due and appropriate actions in the preparation of the documents and the announcement of the next new tenders for the operation and maintenance of Wastewater Treatment Plants and Urban Waste.

Source: KYPE
 

Source: www.sigmalive.com

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