Public Procurement in Kosovo Energy Corporation on the focus of performance audit

The National Audit Office has started the performance audit in the Kosovo Energy Corporation (KEC) on the topic “Procurement in the Kosovo Energy Corporation (2018-2020)”. The main focus of the audit is procurement activities, through which significant amounts of money are spent. In fact, KEK is the organisation with the largest share in public procurement in Kosovo. During the years 2018-2020, KEK has concluded through public tenders 1,060 contracts, in a total of €181.5 million.

Procurement activities in KEK, as in any other contracting authority, must be conducted in accordance with the principles of economy, efficiency and equal treatment, principles endorsed by public procurement law, which aim to ensure that procurement of goods, services and works achieves the intended purpose.

Being a 100% joint stock company owned by the Republic of Kosovo, KEK’s activities serve the public interest. Therefore the National Audit Office has decided to make an overall assessment of KEK’s performance in terms of procurement.

The objective of this audit is to assess whether KEK has achieved the procurement objectives set during 2018-2020, and if so, whether it has achieved them by combining resources in the best way possible.

The scope of performance audit includes procurement contracts concluded during the years 2018-2020, with special focus on contracts concluded through the negotiated procedure without publication of a contract notice, the value of which amounts close to €33 million, thus representing 18% of the total value of contracts concluded by KEK in this period. Of these, we have selected a total of 108 contracts worth €7.75 million. Contracts concluded by using the open procedure are also part of the scope, of which €55 million (39 contracts) shall be subject to audit. Six of them are works contracts, the other 33 are supply contracts.

The audit aims to address the following:

• Identification of needs and procurement planning;
• Preparation of technical specifications;
• Submission of professional and technical eligibility requirements;
• Contracts management; and
• Assessment that KEK has made on procurement processes.

This audit aims to increase the accountability, transparency and integrity of public procurement activities in the Kosovo Energy Corporation and, when necessary, to provide recommendations on the effective and efficient use of public funds.