Procurement watchdog fines public benefit association

Deals

Hungary’s public procurement arbitration board (KDB) announced Tuesday it has fined public benefit association LEADER HUF 5 million for dividing tenders and signing contracts for them without any procurement process.

The 2008 budget allocated HUF 500 million for LEADER to "communicate" the impact of the economic crisis in the countryside.

The association signed contracts with three companies for HUF 72.7 million each to write analyses about the crisis in February 2009. LEADER then received HUF 37.5 million a month later to set up a website.

KDB said the three studies should have been written by a single company.

The case was forwarded to KDB by Hungary's Government Audit Office (Kehi).

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