Pro-presidential lawmakers say the legislation will make government-owned companies more competitive, while critics say the bill will fuel corruption, cronyism and insider dealing.
The bill exempts state-owned companies and taxpayer-financed enterprises from holding competitive bids. It furthermore excuses them from having to publish the dollar amounts of their orders or the winning bidder.
Citing official statistics, procurement watchdog Nashi Hroshi (our money), stated that in 2011 the state made Hr 325 billion ($40.6 billion) worth of purchases, of which $31.25 billion, or 76 percent, went through state-owned companies and other entities. In the first six months of this year alone, the state spent Hr 307 billion ($38 billion) on public procurement, the group reported.