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 policies 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, noncash, 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 institutions 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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