Bid rigging in Uzbekistan: collusive schemes in public procurement and their signs for detection

  • PhD, Head of Business Law Department, Tashkent State University of Law radjapovhusain@gmail.com

DOI

https://doi.org/10.47689/2181-1415-vol4-iss5/S-pp173-187

Keywords

collusion / corruption / tender / competition

Abstract

The damage caused by collusive schemes to the state, society, and entrepreneurship hinders development and throws the country back. This study analyzes potential collusion schemes in the field of public procurement and proposes suggestions for improving the effectiveness of the fight against violations. Corruption and cartels are common in public procurement tenders, where bidders can negotiate a price increase or prioritize the winner and reserve contractors, causing significant damage to the government budget. According to World Bank studies, as a result of collusion in tenders, the tenders themselves cost the state 20-30% more. On March 14, the Legislative Chamber of the Parliament heard a report from the Accounts Chamber, stating that in 2021, violations of public procurement laws worth 971.1 billion soums were revealed. In this article, based on foreign experience and individual cases in domestic practice, we would like to analyze what schemes and methods to circumvent restrictions can be used in the field of public procurement and what changes in legislation and control practices are needed to prevent them. Where possible, potential loopholes and weaknesses in anti-corruption controls are identified.

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References

Закон РУз «О государственных закупках»

OECD, Competition Law and Policy in Uzbekistan 2022 https://www.oecd.org/countries/uzbekistan/an-introduction-to-competition-law-and-policy-in-uzbekistan-ru.htm

Х.Раджапов, «Как избежать коррупцию в госзакупках», 2022 https://www.gazeta.uz/ru/2022/03/31/procurement/

Husain, Radjapov. The Identification of Tacit Collusion in Oligopolistic Markets. Diss. 神戸大学, 2019.

OECD (2014) Detecting Bid Rigging in Public Procurement, www.oecd.org/competition/cartels/42594486.pdf .

OECD, Fighting bid rigging in public procurement, 2016 http://www.oecd.org/competition/Fighting-bid-rigging-in-public-procurement-2016-implementation-report.pdf

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How to Cite

Radjapov, H. 2023. Bid rigging in Uzbekistan: collusive schemes in public procurement and their signs for detection. Society and Innovation. 4, 5/S (Jun. 2023), 173–187. DOI:https://doi.org/10.47689/2181-1415-vol4-iss5/S-pp173-187.