November 26 (BTA) - Meeting on Friday, the Expert Council on the Public Procurement Act discussed in-house public procurement awards, the Finance Ministry said in a press release.

In in-house procurement, the contracting authority is not required to invite competitive bids in order to award a contract because it provides itself the supplies, services or works that it requires without using external resources. In-house procurement contracts may also be performed by a company or another separate legal entity established by the contracting authority.

"I believe that in-house contracts should be admitted under certain conditions and criteria, defining the specific need, price and payment rules and identifying the contractor's capacity to perform the contract," Justice Minister Ivan Demerdjiev said, addressing the Expert Council.

"Taking measures and to-the-point action is imperative because a number of violations are committed, most often in the area of in-house procurement," Finance Minister Valeri Belchev said, arguing that "there are obvious problems with public procurement, and their root cause is mainly in legislation and its application."

"In my opinion, this procedure must exist but should be limited to specified exceptional circumstances. These cases need to be particularized," Regional Development and Public Works Minister Violeta Komitova pointed out.

Economy Minister Daniela Vezieva added that in-house procurement exists all over the world but, judging from the practice in Bulgaria, the restrictions set by the law are not observed.

The Expert Council members also considered various cases and problems that contracting authorities have encountered and the need to revise the legislative framework.

Summing up the proceedings, Belchev said that urgent systematic and synchronized action needs to be taken at all levels.

Deputy ministers and political cabinet officials of the Ministry of Interior and the Ministry of Transport, IT and Communications, the Bulgarian National Audit Office, the Public Procurement Agency and the Public Financial Inspection Agency also took part in the meeting. That was the first occasion on which the Expert Council met in this format, which makes it possible to hear institutions, ministries and contracting entities on matters concerning the application of the Public Procurement Act.