Проблеми функціонування системи ProZorro та шляхи їх подолання
The Problems of the ProZorro Procurement System and Ways of Overcoming Them

Summary/Abstract: The objective of the article is to analyze the shortcomings in the work of the ProZorrо public procurement system in the sphere of supplying, in particular, the enterprises that ensure «Ukrzaliznytsia» operation, to search for the causes of such state and potential ways of improvement the system. These techniques may include: (1) Attempts to "hide" the call for tender so that it could only be found by the “insiders”; (2) Accepting only "desirable" contractors in the bidding process; (3) Formulating discrimination conditions for “undesirable” participants; (4) Currently, the only criterion for determining the winning bidder is the lowest price, the quality is not taken into consideration; (5) Litigation of the results of auctions became too expensive and therefore loses its effectiveness; (6) Mistakes made by participants (correction of which becomes a complex problem); (7) Ungrounded cancellation of the auctions; (8) The client "removes" undesirable participants in the process of post-auction qualification.There is over-threshold (over 1 million UAH) and sub-threshold purchasing. Over-threshold purchases are easier to control. In case of sub-threshold purchasing the possibility of corruption is much higher. Important details of the orders are not being declared. The regulation of government procurement is a subject of major interest of legislators around the world. The basic principles include: transparency, openness and effective competition (non-discrimination), fairness as equal opportunities for all purchasers. Modern international law on public procurement is based on the United Nations Commission on International Trade Law (UNCITRAL).Based on a thorough analysis, authors suggest that implementation of this law in Ukraine is strongly recommended. It is agreed that its implementation could prevent the major problems of government procurement. In order to improve the ProZorro procedure, in January 2018 President of Ukraine signed a decree on the introduction of the DoZorro portal, aimed at preventing corruption practices and collecting data about organizations that were noticed in such instances. Activists of the DoZorro portal are able to restore justice in 40% of procurement violation cases. We consider it insufficient and see this step only as a simulation of fight against corruption, which discredits the very idea of preventing and fighting corruption, allowing corrupt officials to continue their work practices as before. Therefore, we can summarize our findings are as follows: - It is necessary to improve procurement systems – in particular the ProZorro system, aiming increasing independence from subjective factors, to create a transparent, democratic and efficient procedure, based on the UNSITRAL Model Law. In this way it is possible to improve the work of the monopoly industries, in particular «Ukrzaliznytsia», and the enterprises that provide their work. It is necessary to have effective appeal procedures with actual terms of their execution. The functions of the whole judicial system should be optimized to reach a desirable level. The role of support and cooperation of state and others bodies should not be underestimated.

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