DIGITISATION OF LEGAL ALGORITHMS TO PREVENT PUBLIC PROCUREMENT CORRUPTION

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Published: Dec 30, 2024
https://doi.org/10.30525/2256-0742/2024-10-5-254-265

  Oleksii Makarenkov

Zaporizhzhia National University, Ukraine
https://orcid.org/0000-0003-0042-165X

Abstract

The subject of the article is the digitisation of legal algorithms as a means of preventing corruption in public procurement. The research methodology employed a range of methods including formal and dialectical logic, systemic, statistical, comparative law, hermeneutic and axiological analysis. The purpose of the article is to reveal the digitisation of legal algorithms as a means of preventing corruption in public procurement. The subject of the article is the digitisation of legal algorithms as a means of preventing corruption in public procurement. The research methodology employed a range of methods including formal and dialectical logic, systemic, statistical, comparative law, hermeneutic and axiological analysis. The purpose of the article is to reveal the digitisation of legal algorithms as a means of preventing corruption in public procurement. The absence of confidence in public authorities' effective utilisation of budgetary funds engenders inherent justifications for entrepreneurs, their employees, and other members of the public to conceal resources from irresponsible or negligent public officials, particularly in the context of cryptocurrency assets. It was found that the issue of corruption in public procurement is part of the wider problem of satisfying the improper motives of public officials. The legal patterns indicate that in countries with high levels of internal corruption, digital and/or paper formalised legal algorithms and practices emphasise the efficiency of fiscal policy rather than the efficiency of public procurement. This explains the inertia and neglect in strengthening existing mechanisms or creating new ones to combat corruption in public procurement. The practical inactivity in this area is reflected in the number of criminal cases related to the misappropriation of public funds. It was emphasised that the entity responsible for the oversight of the integrity and legality of all public procurement participants, or a complainant, must possess the capacity to gather evidence in such cases. In order to accomplish this, said entity requires full legal access to the necessary data from registries and other relevant sources. At present, this is only feasible within the framework of criminal proceedings and/or judicial processes. It is therefore advisable to make public procurement complaint procedures judicial in nature, allowing the parties to try to gather evidence independently. Given the globalisation of the information space, investment, financial, trade and logistics markets, the threat of financing terrorism, war and other crimes through improper control of virtual assets in cyberspace. It was determined that the legal nature of public procurement complaints is defined by the public interest. The value and importance of this type of public interest lie in its connection to finances – resources that have already been accumulated as a result of successive links in prior public interest efforts: labour participation, administration of entrepreneurship and its infrastructure, taxation, and budget fund management. This consolidation of national labour efforts, embodied by public funds, possesses absolute liquidity, rendering it a primary target for misappropriation, including through illicit channels. It is submitted that the employment of contemporary digital instruments is the only means through which to ensure compliance, by neutralising any dishonest motives for misappropriating public funds through procurement processes.

How to Cite

Makarenkov, O. (2024). DIGITISATION OF LEGAL ALGORITHMS TO PREVENT PUBLIC PROCUREMENT CORRUPTION. Baltic Journal of Economic Studies, 10(5), 254-265. https://doi.org/10.30525/2256-0742/2024-10-5-254-265
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