{"id":445474,"date":"2018-04-14T10:56:54","date_gmt":"2018-04-14T10:56:54","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=445474"},"modified":"2018-04-14T10:57:18","modified_gmt":"2018-04-14T10:57:18","slug":"study-corruption-moldovas-public-procurement-yearly-costs-3-billion-lei","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/study-corruption-moldovas-public-procurement-yearly-costs-3-billion-lei\/","title":{"rendered":"Study: Corruption in Moldova&#8217;s public procurement yearly costs up to 3 billion Lei"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>11 April 2018- <a href=\"https:\/\/www.expert-grup.org\/media\/k2\/attachments\/Public_Procurement_CLa_PunctC.pdf\">An analytical commentary by Iurie Morcotilo<\/a> states that the corruption in public procurement costs Moldova up to 3 billion Lei (183,24 million USD).<\/p>\n<p>The study is based on the official data on the estimated full cost of public procurement from 2008 till 2015. The main factors cited as causes stimulating corruption in public procurement are lack of transparency, the complexity of the procurement process, but also the misinterpretation of the public budget as something abstract, not as money from the taxpayers. The corruption in public procurements are believed to happen at different stages: planning, procurement launching, evaluation and contract awarding, contract implementation stage.<\/p>\n<p>Though Morcotilo recognizes that quantifying corruption is hard in this field, the study views some indicators from Moldova&#8217;s ranking in the Global Competitiveness Report: embezzlement of public funds, favoritism in governmental decisions, informal bribes and payments, and inefficiency of public spending.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-445476\" src=\"http:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/perception-corruption.jpg\" alt=\"\" width=\"783\" height=\"413\" srcset=\"https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/perception-corruption.jpg 783w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/perception-corruption-300x158.jpg 300w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/perception-corruption-768x405.jpg 768w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/perception-corruption-400x211.jpg 400w\" sizes=\"(max-width: 783px) 100vw, 783px\" \/><\/p>\n<p>The costs of corruption in public procurement was also calculated based on the estimated international average of 20-25% of the total amount of public procurement. In Moldova&#8217;s case, the 25% quota was\u00a0<em>reasonably\u00a0<\/em>applied, even if the statistical data on public procurement are lacking (only big contracts are counted for stats). The study found that between 1,3% and 2,5% of Moldova&#8217;s GDP are lost to corruption in public procurement:<\/p>\n<blockquote><p><em>&#8220;Based on the available data and applying the 25% average percentage of the corruption cost in public procurement, it can be estimated that in 2015 this cost varied from MDL 1.6 billion to MDL 3 billion, which represents between 1.3% and 2.5% of GDP&#8221;<\/em>, reads the study.<\/p><\/blockquote>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-445475\" src=\"http:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/corruption-part-of-GDP.jpg\" alt=\"\" width=\"929\" height=\"545\" srcset=\"https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/corruption-part-of-GDP.jpg 929w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/corruption-part-of-GDP-300x176.jpg 300w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/corruption-part-of-GDP-768x451.jpg 768w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/corruption-part-of-GDP-400x235.jpg 400w\" sizes=\"(max-width: 929px) 100vw, 929px\" \/><\/p>\n<p>Of course, those are only monetary costs. Other consequences are:<\/p>\n<ul>\n<li>long-term financial losses for the public budget;<\/li>\n<li>negative impact on health and safety of population;<\/li>\n<li>negative effects on competition.<\/li>\n<\/ul>\n<p>The author opinionates that the corruption in public procurement can be reduced only by joint efforts of the authorities fighting corruption and those responsible for procurement management, but also by enhanced monitoring by citizens.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>11 April 2018- An analytical commentary by Iurie Morcotilo states that the corruption in public procurement costs Moldova up to 3 billion Lei (183,24 million USD). The study is based on the official data on the estimated full cost of public procurement from 2008 till 2015. The main factors cited as causes stimulating corruption in [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":445475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[35],"class_list":["post-445474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-important"],"content_social_share":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>11 April 2018- <a href=\"https:\/\/www.expert-grup.org\/media\/k2\/attachments\/Public_Procurement_CLa_PunctC.pdf\">An analytical commentary by Iurie Morcotilo<\/a> states that the corruption in public procurement costs Moldova up to 3 billion Lei (183,24 million USD).<\/p>\n<p>The study is based on the official data on the estimated full cost of public procurement from 2008 till 2015. The main factors cited as causes stimulating corruption in public procurement are lack of transparency, the complexity of the procurement process, but also the misinterpretation of the public budget as something abstract, not as money from the taxpayers. The corruption in public procurements are believed to happen at different stages: planning, procurement launching, evaluation and contract awarding, contract implementation stage.<\/p>\n<p>Though Morcotilo recognizes that quantifying corruption is hard in this field, the study views some indicators from Moldova&#8217;s ranking in the Global Competitiveness Report: embezzlement of public funds, favoritism in governmental decisions, informal bribes and payments, and inefficiency of public spending.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-445476\" src=\"http:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/perception-corruption.jpg\" alt=\"\" width=\"783\" height=\"413\" srcset=\"https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/perception-corruption.jpg 783w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/perception-corruption-300x158.jpg 300w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/perception-corruption-768x405.jpg 768w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/perception-corruption-400x211.jpg 400w\" sizes=\"(max-width: 783px) 100vw, 783px\" \/><\/p>\n<p>The costs of corruption in public procurement was also calculated based on the estimated international average of 20-25% of the total amount of public procurement. In Moldova&#8217;s case, the 25% quota was\u00a0<em>reasonably\u00a0<\/em>applied, even if the statistical data on public procurement are lacking (only big contracts are counted for stats). The study found that between 1,3% and 2,5% of Moldova&#8217;s GDP are lost to corruption in public procurement:<\/p>\n<blockquote><p><em>&#8220;Based on the available data and applying the 25% average percentage of the corruption cost in public procurement, it can be estimated that in 2015 this cost varied from MDL 1.6 billion to MDL 3 billion, which represents between 1.3% and 2.5% of GDP&#8221;<\/em>, reads the study.<\/p><\/blockquote>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-445475\" src=\"http:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/corruption-part-of-GDP.jpg\" alt=\"\" width=\"929\" height=\"545\" srcset=\"https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/corruption-part-of-GDP.jpg 929w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/corruption-part-of-GDP-300x176.jpg 300w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/corruption-part-of-GDP-768x451.jpg 768w, https:\/\/www.moldova.org\/en\/wp-content\/uploads\/sites\/2\/2018\/04\/corruption-part-of-GDP-400x235.jpg 400w\" sizes=\"(max-width: 929px) 100vw, 929px\" \/><\/p>\n<p>Of course, those are only monetary costs. Other consequences are:<\/p>\n<ul>\n<li>long-term financial losses for the public budget;<\/li>\n<li>negative impact on health and safety of population;<\/li>\n<li>negative effects on competition.<\/li>\n<\/ul>\n<p>The author opinionates that the corruption in public procurement can be reduced only by joint efforts of the authorities fighting corruption and those responsible for procurement management, but also by enhanced monitoring by citizens.<\/p>\n<div class='heateorSssClear'><\/div><div  class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https:\/\/www.moldova.org\/en\/study-corruption-moldovas-public-procurement-yearly-costs-3-billion-lei\/' data-heateor-sss-no-counts=\"1\"><div class='heateor_sss_sharing_title' style=\"font-weight:bold\" ><\/div><div class=\"heateor_sss_sharing_ul\"><a aria-label=\"Facebook\" class=\"heateor_sss_facebook\" 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class='heateorSssClear'><\/div>","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Study: Corruption in Moldova&#039;s public procurement yearly costs up to 3 billion Lei - Moldova.org<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.moldova.org\/en\/study-corruption-moldovas-public-procurement-yearly-costs-3-billion-lei\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cristi Vlas\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/study-corruption-moldovas-public-procurement-yearly-costs-3-billion-lei\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/study-corruption-moldovas-public-procurement-yearly-costs-3-billion-lei\\\/\"},\"author\":{\"name\":\"Cristi Vlas\",\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/#\\\/schema\\\/person\\\/dcbd06b375a29cab9233deffe7826a9f\"},\"headline\":\"Study: Corruption in Moldova&#8217;s public procurement yearly costs up to 3 billion 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