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audit of 3 trillion yuan reveals problems in government procurement

2024-09-10

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the national government procurement scale exceeds 3 trillion yuan a year. whether this huge amount of money can be used in a standardized and efficient manner has always been a focus of outside attention.

recently, some provinces have successively released the 2023 local budget implementation and other fiscal revenue and expenditure audit reports (hereinafter referred to as "audit reports"). while these reports affirmed that government procurement has helped promote high-quality economic and social development, they also found some problems.

these problems include that some departments and units purchase without budget or over-budget, and are very arbitrary; government procurement procedures are not compliant, and some fail to follow the public bidding procedures or implement before bidding; collusion in bidding and illegal subcontracting occur frequently in government procurement, and some bidding documents have unreasonable contents, with biased clauses and scoring rules; some fail to conduct price comparisons, resulting in high procurement prices; government procurement of services is not standardized, and some departments and units outsource matters that they should directly perform to third parties for implementation, etc.

huang hao, associate professor at the school of finance and taxation of southwestern university of finance and economics, told caixin that judging from the above-mentioned issues in the audit report, illegal and irregular issues related to government procurement management are still common and frequent, and even in some regions the amount involved is huge and the impact is relatively severe.

"we should look at the typical problems that arise in the field of government procurement dialectically. we should attach great importance to them and actively make rectifications and improvements. at the same time, we should realize that government procurement business itself is relatively complex, involves a wide range of aspects, and objectively is prone to breeding violations. it needs to be gradually resolved along with the continuous improvement of market mechanisms, social credit and the rule of law environment." huang hao said.