New procurement rules aim to curb corruption

A new regulation designed to prevent misconduct by those involved in government procurement took effect on Sunday.

The new regulation supplements the provisions of the 2003 Government Procurement Law and is intended to ensure that procurement is carried out in a transparent and fair way under effective supervision, according to a statement by the State Council's Legislative Affairs Office.

The total value of government procurement exceeded 1.6 trillion yuan ($255 billion) in 2013, up from 100 billion yuan in 2002, before the law was passed, the office said.

"Problems that have occurred in government procurement activities, such as excessive spending and the purchase of substandard products, have aroused public concern in recent years, and a complementary administrative regulation is necessary," the statement said.

Information on government procurement projects, including budgets, contracts and bidding results, must be made public to prevent under-the-table deals and corruption, the statement added.

The regulation says government offices involved in procurement should work within their budgets, and officials should inspect products and services before accepting them to ensure that suppliers honor contracts.

A report published last year by the Chinese Academy of Social Sciences said 80 percent of goods procured by the government cost more than the market price.

A community in Shenzhen, Guangdong province, bought three trees for use in a landscaping project for 315,000 yuan in 2013. An official said a discounted price had been obtained, but many netizens doubted that the price was really that high.

Corruption involving procurement in the former railways ministry sparked controversy after it was reported that a water tap in a washroom on a high-speed train cost more than 12,000 yuan. Several senior officials at the ministry were investigated on suspicion of corruption, including former minister Liu Zhijun, who was sentenced to death with a two-year reprieve in 2013.

Zhu Lijia, a professor of public management at the Chinese Academy of Governance, said irregularities such as under-the-table deals and the abuse of power to obtain profit are common in government procurement.

"The regulation may, in some ways, curb irregularities," he said. "The key is to ensure there is openness and transparency in the procurement process, and there should be clear guidelines on how information is made public.

"Government spending should be under effective public supervision to avoid irregularities - self-supervision by the government is not enough."

wangxiaodong@chinadaily.com.cn