Romania Readies New Amendments To Public Procurement Law - Sources

Romanian government will draw up new amendments to the public procurement law, including higher fines for annulling illegal contract assignments and reduced stamp tax, or possibly no tax at all, for companies that challenge auction proceedings, people close to the matter said Sunday.

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The amendments will be introduced at the recommendation of the European Commission, the mentioned sources said.

The latest amendments to the public procurement law were operated in March, when the government introduced new rules for contract assignment and complaint settlement.

Romania’s amended public procurement law stipulates individuals or companies challenging bids in court have to pay a stamp tax of 2% of the contract’s value. The move aimed to limit the number of complaints, which often stall public projects.

The European Commission, however, showed the new stamp tax could block the free access to justice, the mentioned sources said.

As to the fines issued to contractors who assign illegal contracts and afterward must annul the proceedings, the Commission believed their value was too low.

“This leads to amendments to provisions on the stamp tax, possibly even to its elimination, while the fines issued to contractors will be increased by introducing a maximum limit of 15%, which is higher than the existing value,” the sources said.

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