Criminal law risks in public procurement

Criminal law risks in public procurement: what might draw the attention of law enforcement agencies to the successful tenderer?

Participation in public procurement offers the opportunity to secure a major contract, but it also presents an area of heightened legal risks for businesses and their officers.

Sergiy Kirich, a counsel at EQUITY, and Bohdan Pracun, a lawyer, explained to Yurydychna Praktyka exactly what aspects of the conduct and execution of public procurement may attract the attention of law enforcement agencies, and how businesses can minimise potential risks.

Key issues include:

▫️ Affiliated companies in the supply chain for the procurement item;

▫️ Determining the estimated value of the procurement item;

▫️ Discriminatory technical requirements for the procurement item;

▫️ Lack of a justified need for the procurement.

Experts highlight an important practical aspect: risks should be assessed before participating in a procurement process, rather than after law enforcement agencies have taken an interest in it.

For information on which ‘red flags’ businesses should be aware of at different stages of the procurement process and how to protect themselves against potential criminal law consequences, see the full article.