President signs changes tightening public procurement terms

Prague, Feb 13 (CTK) - Czech President Vaclav Klaus signed yesterday an amendment tightening the public procurement conditions, his spokesman Radim Ochvat has said.

Under it tender winners will have to release their subcontractors who will supply more than 10 percent of the order price.

In public procurement for more than 300 million crowns this duty would apply to subcontractors who would supply more than 5 percent of the total price.

The amendment abolishes drawing lots in public procurement and it aims to eliminate tenders tailor-made for a specific firm.

The passing of the legislation in parliament was accompanied by sharp disputes.

The Chamber of Deputies eventually approved on January 31 the version that it passed formerly and it rejected the changes proposed by the Senate.

The left-dominated Senate just as the leftist opposition in the Chamber of Deputies demanded that tender winners release their ownership structure, including anonymous share-holders, silent partners or persons who share in firms' profit without figuring in them.

Some experts claim that the Senate proposal would cause problems in practice.

The opposition Social Democrats (CSSD) have already announced that they will submit another amendment to the public procurement law.

NGOs as well as the opposition parties say the public procurement winners must provide full information, including on their subcontractors down to individuals.

($1=19.143 crowns)