How Senate turned contract register to flop: Find five differences

Read what the Senate wrought to the bill on contract register. Learn how the Upper Chamber-proposed version differs and why it won’t work. Adopting laws that are only labelled as anti-corruption simply won’t do.

Having debated the bill for more than two years, the Chamber of Deputies has arrived at a fragile coalition agreement and corrected the visible flaws. Still, Senators came forth with several “improvements”:

Senate version House version
Official discloses what he deems fit. This has no prejudice for the applicability of contracts. Whatever official does not disclose will simply not apply. Contract must be disclosed within 3 months after being concluded.            
Need to check approx. 1.5 million contracts a year, filed by approx. 8,000 parties. Nothing to check. If it isn’t on the internet, it’s not valid.
Already overburdened ÚOHS would additionally have to perform approx. 2,000 deep audits a year at offices, schools, school libraries, pensioners’ homes and other institutions. Time needed for one check amounts to 3-6 days. Dozens of new employees might need to be hired to ensure proper oversight.

Approx. 200 ÚOHS employees can fully devote themselves to checking the disclosure of contracts on public procurement orders—a full-time job already.

¼ of contracts cannot be tracked, ¾ lack contractors, and ½ lack price statement.  

ÚOHS will mete out fines amounting to 25% of the price stated in the contract. In most cases, the State will impose fines on itself. Erring official might be fined to the amount of 4.5 times his/her pay. Second contracting party cannot be fined. ÚOHS will continue fining for the non-disclosure of contracts on public procurement orders up to CZK 10 million.
Jaroslav Hanák, President of the Confederation of Industry of the Czech Republic, on ÚHOS: “People have cropped up but no improvement is in sight,” he said at the start of an engineering fair. Josef Baxa, President of the Supreme Administrative Court of the Czech Republic: “The contract undisclosed is a contract void principle is the only truly efficient defence against attempts to circumvent transparency of contracting in public institutions.”

Read a detailed position (in Czech) on: http://www.rekonstrukcestatu.cz/na-stazeni/stanovisko-rekonstrukce-statu-k-registru-smluv.pdf.