Misuse of building orders: Corruption threatens our communities!

Misuse of building orders: Corruption threatens our communities!

Petzenkirchen, Österreich - The award practice in Austria, especially in the area of ​​public orders, is under strict observation, as the latest reports from the State Audit Office show. A striking case concerns the elementary school in Petzenkirchen, where the construction planning was awarded directly to an entrepreneur without obtaining prior comparison offers. This creates a considerable space for manipulations, warned Edith Goldband, director of the State Audit Office, and emphasized the importance of a transparent pricing in order to counteract competitive behavior. Serious defects were also found when building an administrative building for the Institute of Science and Technology (ISTA) in Klosterneuburg. Price negotiations took place after the end of the offer period, which violates procurement law, and the required documents were inadequate, as orf.at reported.

challenges in procurement law

The procurement law that came into force on April 18, 2019 with the new Federal Public Process Act remains a complex matter that affects both public and some private clients. Dealing with the award procedure and the need to comply with legal provisions are of great relevance. A disregard could even lead to claims for damages. The client, such as municipalities and their facilities, must check exactly when which award procedure must be applied. A clear guide, provided in a comprehensive specialist article, provides information about which procedures should be used in order to meet the legal requirements, such as explained.

Another crucial aspect is the cooperation between the state accounts and the federal competition authority in order to sensitize the authorities with regard to possible antitrust violations. This is particularly relevant because numerous cases of price agreements and purchased orders have been uncovered in the past. The non -observance of public procurement laws can not only mean financial disadvantages for the public sector, but also significantly impair the trust of the citizens into the integrity of the system. The numbers are alarming: In recent years, almost 200 million euros have been imposed as punishments to companies that were involved in illegal agreements. A zero tolerance policy is therefore urgently necessary to protect public order and to reduce the costs, as the State Audit Office emphasizes.

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OrtPetzenkirchen, Österreich
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