Representing approximately 12% of GDP in Greece, public procurement is a critical pillar of public service delivery. It is also the government activity most vulnerable to waste, mismanagement and corruption.
Greece has introduced several measures to improve the functioning of its public procurement system and address challenges and risks, including through the Greek National Public Procurement Strategy 2016-2020 and the National Anti-Corruption Action Plan for 2018-2021. These measures include the adoption of Law 5013/2023, which establishes the standard Risk Management Policy and Framework. This integrated framework allows public entities to effectively manage risks that affect the implementation of their strategic and operational objectives as well as their efficiency and effectiveness.
Applying the standard Risk Management Policy and Framework to public procurement will help tackle some of the challenges faced by the Greek public procurement system, such as inefficiency; corruption; a lack of competition, proper planning and budgeting, market analysis and market knowledge; professionalisation gaps; and the excessive use of non-competitive procedures.
In terms of governance, the National Transparency Authority (NTA) has been given the responsibility, through Law 5013/2023, to define the standard Risk Management Policy and Framework and lead its application to public procurement. However, other stakeholders will play a key role in the implementation of the Framework in public procurement, including the Hellenic Single Public Procurement Authority (HSPPA), the General Secretariat of Commerce (GSC), contracting authorities, economic operators, the Hellenic Court of Audit, other oversight bodies, civil society organisations, and capacity-building and training bodies.
Law 5013/2023 mandates entities to develop a risk management policy to guide them in decisions and actions related to the management of the risks to which they are exposed. In doing so, it is particularly important to:
Map roles and responsibilities relevant to public procurement for the development and implementation of the risk management framework at the entity level.
Provide guidance in the policy on i) how the eight categories of risks defined in the Framework (corruption and fraud, operational, strategic, information and technology, health and safety, fiscal, legal/regulatory/compliance, natural or non-natural disaster) can be understood in terms of public procurement; and ii) how to define other elements, such as risk impact, in a public procurement context.
The report provides practical guidance to public entities on how to manage public procurement risks by detailing different steps: risk identification, risk analysis, risk evaluation, risk treatment, recording and reporting, monitoring and review and communication. Finally, the report looks at key elements for the effective implementation of a risk management approach and culture in public procurement. These include the professionalisation of the procurement workforce and the provision of relevant tools. While some tools, such as risk registries, are necessary to conduct risk management activities, others can support the management of the most recurrent risks in public procurement.
