In Ukraine, people are not used to the controlled spending of public funds. Instead, corruption among officials is rife. Until recently, the country relied heavily on paper-based tenders, which made abuses by government-procuring entities entirely possible. The system was also complicated and inconvenient for suppliers and did not provide the opportunity for public and professional control.
How they’re disrupting
ProZorro is a public e-procurement system that has replaced the old paper-based state tenders. It is forcing down the level of corruption – saving millions of pounds. ProZorro is picking up recognition, and became a learning project for the World Bank in an attempt to promote openness in public contracting.
The potential economic benefit from the public procurement reform may reach 60 billion UAH (£1.7 billion) per year. ProZorro has also been considered by the European Bank for Reconstruction and Development as a possible eProcurement reform model.
Investments and future
The Ukrainian government has adopted ProZorro services – cutting $2 billion in corruption so far. ProZorro now has the potential to be utilised in other countries and regions where corruption in the public services supply chain is rife.