After the Rain : how the West lost the EastVaknin, Samuel
History
After the Rain : how the West lost the East
Vaknin, Samuel
Europe, Eastern -- Economic conditions -- 1989-; Europe, Eastern -- Politics and government -- 1989-
But all countries state in advance that they have no obligation to
accept any kind of offer - even if it is the cheapest. This is a needed
provision: the cheapest is not necessarily the best. The cheapest offer
could be coming from a very unreliable supplier with a bad past
performance or a criminal record or from a supplier who offers goods of
shoddy quality.
The tendering policy of most of the countries in the world also
incorporates a second principle: that of "minimum size". The cost of
running a tender is prohibitive in the cases of purchases in small
amounts.
Even if there is corruption in such purchases it is bound to cause less
damage to the public purse than the costs of the tender, which is
supposed to prevent it!
So, in most countries, small purchases can be authorized by government
officials - larger amounts go through a tedious, multi-phase tendering
process. Public competitive bidding is not corruption-proof: many times
officials and bidders collude and conspire to award the contract
against bribes and other, non-cash, benefits. But we still know of no
better way to minimize the effects of human greed.
Procurement policies, procedures and tenders are supervised by state
auditing authorities. The most famous is, probably, the General
Accounting Office, known by its acronym: the GAO.
It is an unrelenting, very thorough and dangerous watchdog of the
administration. It is considered to be highly effective in reducing
procurement - related irregularities and crimes. Another such
institution is the Israeli State Reviser. What is common to both these
organs of the state is that they have very broad authority. They
possess (by law) judicial and criminal prosecution powers and they
exercise it without any hesitation. They have the legal obligation to
review the operations and financial transactions of all the other
organs of the executive branch. Their teams select, each year, the
organs to be reviewed and audited. They collect all pertinent documents
and correspondence. They cross the information that they receive from
elsewhere. They ask very embarrassing questions and they do it under
the threat of perjury prosecutions. They summon witnesses and they
publish damning reports, which, in many cases, lead to criminal
prosecutions.
Public-domain text, read in full here on John Shaqi.
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