The Court of Auditors, in the presence of the Deputy Minister of finance Mr. s. Thyagarajan, the Agency's Procurement Director Mr. v. Moșneaga, Deputy Agriculture and food industry, Mr. b. Olaru, ex-Deputy Minister of education Mr. i. Gandhi, head of the Directorate procurement department endowment of the Defence Ministry, Mr. v. N., Deputy Chief Manager of S.e. "State Road Administration" Mr. i. Pasha, Chief Deputy of the General Inspectorate of Police of Ministry of Internal Affairs, Mr. Calderon Gh. , Director-general of the Directorate-General for Education, youth and sports of the Chisinau municipal Council, Ms. t. Ha-Kim, as well as other persons with managerial responsibility, being guided by article 2 para. (1) and article 4 para. (1) (a). a) of the law on the Court of Auditors No. 261-XVI of 05.12.2008, examined the performance audit Report public procurement system.
Audit mission was carried out in accordance with article 28 and article 31 of the law on the Court of Auditors and the audit activity of the Court of Auditors for the year 20151.
-------------------------------------------1 Court of Auditors Decision No. 57 of 08.12.2014 "on approving the audit activity of the Court of Auditors for the year 2015".

The audit was conducted in accordance with auditing standards and good practices in the field. To support the findings and conclusions, the audit took place at the public procurement Agency (hereinafter-GPA), with sampling audit at the Ministry of agriculture and food industry, Ministry of education, Ministry of health, the Ministry of defence, S.e. "State Road Administration" Apele Moldovei Agency, General Inspectorate of Police of Ministry of Internal Affairs, Directorate-General for education, youth and Sports of the municipal Council, Directorate of Education Youth and sports, sect. Botany, education, youth and Sport sector. The Center, education, youth and Sport sector. Rîşcani.
Audit activity was oriented towards the attainment of the objective of the audit: "shall perform regulatory responsibilities effectively AAP, surveillance and monitoring of public procurement Goal?" and "have planned, implemented and monitored procurement by the contracting authorities in accordance with legal requirements and best practices in order to ensure the transparency and efficiency of procurement?".
Examining the audit results and the hearing report, and explanations of persons with responsibility functions present in the public tender, the Court of Auditors found: procurement in the Republic of Moldova is playing an increasingly important role in the economy. The value of public works contracts registered by the AAP in 2014 summed up 11538.4 URmil.lei, constituting approximately 10.3% of the gross domestic product (111757 URmil.lei). In this context, the AAP jointly with contracting authorities should strive to improve public procurement related activities through elimination of deviations observed, as any minor improvement in the procurement system creates benefits in the efficient use of public funds. Thus, as regards the fulfilment of the responsibilities of the public procurement Agency in the field of public procurement, it indicates that: • the information relating to public procurement included by the AAP in the internal Management system of the documents is not, in all cases, complete and truthful, being observed, and opportunities for improvement and development.
• The AAP has no set time limits for return/reject statements of contracts and reports where they contain irregularities being delayed the deadline for registration and delivery of goods, works and services.
• In some cases, the complaints examined GPA submitted by operators to the overrun time limits provided for by the legal framework.
• Qualified economic operators List and denied list of economic operators are not comprehensive and, respectively, have utility. The AAP does not have powers to initiate an ex-officio procedure for inclusion in the list of prohibitions for the economic operators, it being within the competence of the organs of control and contracting authorities.
• The AAP does not have information on the number of persons involved in the procurement process within the contracting authorities and, respectively, relating to their training needs in order to ensure the efficiency of public procurement.
With respect to planning, organization and monitoring of public contracts by contracting authorities under conditions of transparency and efficiency, it reveals: • contracting authorities have not provided a description and documentation of related operational processes within the scope of public procurement.
• Contracting authorities does not adequately planning needs and does not ensure the transparency of public procurement through the compilation and publication of notices of invitation to tender.
• Some Contracting authorities have planned procurement procedures failing to cover financial or proof of their allocation, they selected the purchase procedure and illegally conducted procurement procedure without their inclusion in the annual plan of purchases.
• Working groups within the contracting authorities, in some cases, they have not drafted and had not signed the declarations of confidentiality and impartiality, the minutes of the opening and evaluation of tenders, the tenders were not assessed properly according to specifications, have not ensured collection of performance guarantees nor orderly conclusion of low-value contracts, and reporting them to the AAP.
• Contracting authorities do not apply penalties for the violation of economic operators, and in some cases, contrary to legal provisions and contractual advance payments, effected, suportînd, in some cases, additional expenses for the payment of interest.
• Outsourcing of cleaning and laundry services by the Ministry of health was carried out in the absence of a feasibility study and regulations relating thereto.
• Up to now the Ministry of education does not have a methodology for calculating the tax for higher education approved in the established manner, and in these conditions shall ensure the efficient use of budgetary funds, the contracting of these services being carried out by the procedure of purchases from a single source.
• Ministry of agriculture and food industry has not provided in accordance with and in full realization of centralized monitoring of purchase apples according to Government decision No. 972 from 17.11.2014 "regarding the method for allocating the funds for the partial compensation of losses of farmers related to blocking exports." Also, it has not been ensured compliance with the provision relating to the reporting and publication on the web page of a report on the execution of the Government.
Based on the above, pursuant to article 7 para. (1) (a)), article 15(1) thereof. (2) and paragraphs 1 and 2. (4) article 16 c) and art. 34, para. (3) of the law on the Court of Auditors No. 261-XVI of 05.12.2008, Court of Auditors DECIDES: 1. to approve the report of the audit the performance of the procurement system, which is attached to this decision.
2. this Resolution and the report of the audit shall be submitted to: 2.1. Procurement agency for documentation relating to the audit results, and shall be required to: 2.1.1. to take the necessary measures, in accordance with the powers, in order to implement the recommendations;
2.1.2. in order to remedy deficiencies exposed in this report, to take into account when drawing up the regulatory framework for the implementation of the public procurement Law No. 131 of 03.07.2015;
2.2. the Ministry of agriculture and food industry, Ministry of education, Ministry of health, the Ministry of defence, the General Police Inspectorate of the Ministry of Internal Affairs, the Agency "Apele Moldovei", S.e. "State Road Administration" public medical-sanitary Institution Republican Centre of medical diagnostic, Directorate-General for education, youth and Sports of the Chisinau municipal Council and directorates-education, youth and Sports of the sectors, the Centre for documentation of Botanica, and is required to: 2.2.1. to examine the results of the meetings of the collegial bodies and audit management, as well as in other working meetings;
2.2.2. to approve and implement an action plan for the implementation of recommendations and the removal of shortcomings noted, by empowering the working groups for procurement within the contracting authorities;
2.3. The Ministry of transport and road infrastructure, for information regarding the audit results to the S.E. "State Road Administration", as well as the development and submission to the Government on the allocation of funds to fund the program, until the beginning of the budget year in order to optimise the process of organization and operation of public procurement procedures;

2.4. The Ministry of finance, for the documentation and monitoring of the process of elaboration of the regulator in the field of public procurement;
2.5. The Moldovan Government, for information;
2.6. the Permanent Parliamentary Commission for economy, budget and finance, for documentation;
1.7. The National Centre on September 19 and the Prosecutor General, for information and, after examination of the facts of jurisdiction set out in this report.
3. About measures taken to execute subpunctelor 2.1., 2.2. and 2.3. of this Decision and concerning the implementation of the recommendations of the audit, shall inform the Court of Auditors within a period of 18 months from the date of its publication in the Official Gazette of the Republic of Moldova, informed about the measures taken yearly.
4. this Decision shall be published in the Official Gazette of the Republic of Moldova in accordance with article 34 para. (7) of the law on the Court of Auditors No. 261-XVI of 05.12.2008.

The PRESIDENT of the COURT OF AUDITORS Serafim URECHEAN No. 37. Chisinau, 1 October 2015.

report