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 ProZorro public procurement system to save 5 billion hryvnias in 2016, - Yatseniuk

In 2016, it will be possible to save 5 billion hryvnias (approx. $190.160 million) of budget funds with the help of ProZorro electronic public procurement system.

Prime Minister of Ukraine Arsenii Yatseniuk said in "10 minutes with prime minister" TV statement on Sunday night, Censor.NET reports citing the government portal.

"Making all public procurement electronic will result in much bigger savings. Even by modest forecasts, this year's budget savings will make 5 billion hryvnias, and after the complete change for the e-procurement next year, the economic effect may be several times stronger," Yatseniuk said.

He said this would be possible thanks to the introduction of ProZorro electronic public procurement system which has been used in test mode since February 2015. According to him, the complete transition to ProZorro is planned during 2016. "Since April 1, all major customers will have to use the system: ministries, departments, big state-owned companies. All the rest will start getting involved from August," the prime minister promised.

He stressed the development of the system is done at the expense of donors, and each expenditure item is controlled by Transparency International.

The prime minister recalled that public procurement had long been the biggest pork barrel for corrupt officials. "According to our estimates, the losses incurred by corruption and mismanagement accounted for about 20 percent of total public procurement. And this is about 50 billion hryvnias (approx. $1.9 billion) per year," Yatseniuk said.

Also, the prime minister addressed those officials "who still hope to keep some schemes: the transition to electronic system is mandatory, no exceptions. We have everything for it: legal framework, efficient electronic system, selfless team working for the reform to be successful, and full support of international partners."

Read more: Components of e-Parliament to be launched in January, - Speaker Hroisman
 
 
 
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