In half of the inspected public procurements of the Metropolitan Municipality for the period from January 1, 2018 to December 31, 2021 for the repair of the central city area, there are significant violations, as well as detected indicators of fraud, show the results of an inspection by the Agency for State Financial Inspection, assigned by the Minister of Finance.
The procedures and contracts refer to the central city part of Sofia – Zone 4, including the construction, restoration and renovation of the following sites: „Narodno zabrenie“ Square, „Tsar Osvoboditel“ Blvd., part of „Vasil Levski“ Blvd., Sq. „Vasil Levski“, part of „Moskovska“ street, part of „G. S. Rakovski“, square „Al. Nevsky“, part of „Paris“ street, part of „Oborishte“ street, the gardens around the temple-monument „Al. Nevsky“, temple „St. Sofia“, in front of the Synodal Palace and around the monument to Ivan Vazov, „Sredets“ and „Oborishte“ districts, Sofia Municipality.
6 procedures under the Law on Public Procurement, 7 award contracts, as well as the implementation of a grant contract under the Operational Program „Regions in Growth“ 2014-2020 were checked.
The employees of the State Financial Inspection Agency have found a number of violations in 3 of the six inspected procedures. For example, in one of them, an evaluation methodology was created that does not guarantee real competition and does not allow to evaluate the level of performance offered in each offer. According to this procedure, a construction contract for almost BGN 20 million was concluded. In the second procedure, which is for the selection of construction supervision, the commission removed three participants, because they offered more favorable than the average value of the offered prices of the other participants, without setting out in substance the reasons for rejecting the written explanations of the removed candidates In the third procedure, for the selection of a team for management and implementation of the project, it was established that in the bids of the removed five out of a total of six participants, there are proposals that are similar to those proposed by the only participant admitted to evaluation. However, the committee has accepted that there is compliance leading to disqualification. The State Financial Inspection Agency has established an indicator of fraud in the activities of the commission.
The inspection of the implementation of the seven contracts found violations in 4 of them. In three contracts with a total value of nearly BGN 22 million including VAT, the financial interests of the contracting authority were not protected. In two of them, there is no provision for a guarantee securing the funds transferred in advance. In the case of the third contract, a refund of the payable advance in the amount of BGN 2.5 million was allowed on the account of the Metropolitan Municipality 4 months after the expiry of the bank guarantee for funds transferred in advance and after termination of the contract.
An indicator of fraud was also found in one of the checked contracts worth BGN 21.5 million, as the reasons for its termination contradict the documents presented during the financial inspection. In the same contract, it was established that no control was carried out by the Metropolitan Municipality, the construction supervision and the external consultant.
In the case of a contract executed within the framework of a project under the „Regions in Growth“ program, it was established that there was a delay on the part of the contractor, for which, according to the agreement, a penalty was due. At the time of the inspection, the contract was in the process of execution, and the penalty owed by the contractor should be deducted from the final payment in the agreed amount and according to the days of delay.
More information on the completed inspection can be found on the website of the State Financial Inspection Agency.
