Government - from India's to Sweden's to Belgium's - fell
because of procurement scandals which involved bribes
paid by manufacturers or service providers either to
individual in the service of the state or to political parties.
Other, lesser cases, litter the press daily. In the last few
years only, the burgeoning defence sector in Israel saw
two such big scandals: the developer of Israel's missiles
was involved in one (and currently is serving a jail
sentence) and Israel's military attache to Washington was
implicated - though, never convicted - in yet another.
But the picture is not that grim. Most governments in the
West succeeded in reigning in and fully controlling this
particular budget item. In the USA, this part of the budget
remained constant in the last 35(!) years at 20% of the
GDP.
There are many problems with public procurement. It is
an obscure area of state activity, agreed upon in
"customized" tenders and in dark rooms through a series
of undisclosed agreements. At least, this is the public
image of these expenditures.
The truth is completely different.
True, some ministers use public money to build their
private "empires". It could be a private business empire,
catering to the financial future of the minister, his cronies
and his relatives. These two plagues - cronyism and
nepotism - haunt public procurement. The spectre of
government official using public money to benefit their
political allies or their family members - haunts public
imagination and provokes public indignation.
Then, there are problems of plain corruption: bribes or
commissions paid to decision makers in return for
winning tenders or awarding of economic benefits
financed by the public money. Again, sometimes these
moneys end in secret bank accounts in Switzerland or in
Luxembourg. At other times, they finance political
activities of political parties. This was rampantly abundant
in Italy and has its place in France. The USA, which was
considered to be immune from such behaviours - has
proven to be less so, lately, with the Bill Clinton alleged
election financing transgressions.
But, these, with all due respect to "clean hands"
operations and principles, are not the main problems of
public procurement.
Public-domain text, read in full here on John Shaqi.
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