Georgian Gov’t Administration Head highlights transparency as one of the most important principles

Levan Zhorzholiani, the Head of the Georgian Government Administration, on Friday highlighted transparency as one of the most important principles on which the current Government relies, including in the publication of official acts - Government decrees that previously were not made public are now fully accessible.

In his interview with Imedi TV, Zhorzholiani noted that the Government was operating transparently and the introduction of a new system for procurement and market research served precisely this purpose.

“Absolutely everything is open, and moreover, we tell people that if they notice anything, we are ready to answer any questions. Here are the Government’s decisions - everything is available. Now let’s return to the market research module. The MRS system means that, whereas previously market research was done by emailing 2-3 suppliers - even when there were 20 or 30 suppliers on the market - and prices were often far from the real market value, today the goal is not to pay less at any cost, but to pay a fair price. It must be acceptable both for businesses and for the state - neither too low nor excessive. If we pay a little less, of course we’ll be happy, but that is not our objective”, he said.

“The system is already in test mode and many ministries are using it. From January 1, all procuring organisations will be required to upload their market research into this electronic module. As soon as the procurement of a specific good or service appears in the system, all suppliers will automatically receive information inviting them to participate in the market research. After that, claims such as ‘I didn’t know’ or ‘I couldn’t manage’ will no longer apply. If there are 20 or 30 suppliers of a product, all of them will be able to take part and submit prices. This eliminates the possibility of side deals, because while a company might strike an arrangement with 2-3 suppliers, it cannot do so with 30. The prices submitted will clearly show the difference. We will take the lowest one, and the tender will be announced with that minimum price, which is then further reduced through competition”, Jorjoliani continued.

The official further spoke about the online Q&A feature integrated into the MRS module, enabling companies to receive answers to their queries through an online format.

“The most important thing is that the procuring organisation cannot see the results until the deadline for submitting prices expires. Previously, it was possible to see a price, call the supplier and ask them to increase or decrease it - that is now impossible. Once the deadline passes, only then are the results opened, and all procuring organisations are bound by the prices identified through this inclusive process. We have also fully safeguarded commercial and personal data, so companies are protected even when they must provide certain commercial information - it will not be made public”, he noted.

“This process ensures that we obtain the correct price and that tenders are announced based on accurate pricing, after which bidding should further reduce the cost. As a result, if the state previously bought something for amount X, that X should decrease substantially, giving public institutions the capacity to purchase more and achieve more with the same resources. From 1 January, this will be mandatory for all procuring organisations. There is no such thing as 100% risk elimination, but if we insure against 95% of the risk, we will see significant results in the coming years. We have a very ambitious goal - to enter the top three European countries for low corruption. The Prime Minister has announced this objective, and the steps we are taking in the procurement sector are leading us toward that goal”, Zhorzholiani concluded.