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The State Inspectorate, which is the principle state institution responsible for disclosing areas of grey economy and violations of the law, is willing to pay over one million dollars to T-Com (gross 5.6 million kunas) over the next three years, disqualifying Metronet, the low bidder that offered one million kunas less.

“The Metronet offer failed to fulfill the documentation required by the tender and, therefore, according to the Law on public tenders, has been excluded from further consideration,” said the spokesman of the State Inspectorate, Ms. Vedrana Cetina. She clarified that Metronet did not hand over a valid signed and stamped solvency report and is lacking a positive Bon-1 form (an official form assessing a company’s present solvency status.) While these were the second round requirements, the first round requirements specified that the company must have more than 10 employees in each county and over 5 million kunas of transactions yearly in the last three years. These conditions cannot be matched by any of the alternative telephone operators. Not even Optima, T-Com’s biggest competitor, can provide a positive Bon-1, since liberalization of the fixed-phone telephony began in 2005 and this would mean that they would have had to make a profit within only one year. Metronet tells us that they are particularly angry that the Inspectorate did not accept the solvency report issued by PBZ that says it is valid without a signature and are particularly bitter on the Bon-1 criteria since they enclosed a special bank guarantee. Metronet added, “the disqualification based on the lack of a positive Bon-1 is unacceptable because it discriminates against all new market operators”. The spokesman of the Inspectorate, Vedrana Cetina, added that they acted accordingly to the 2008 opinion of the System of Public Tender Administration that stated, “it is not discriminating of a tenderer to request from the bidder to prove their solvency in the last two years.” However, in June 2009. the Director of the Tax Administration concluded that the requirement for solvency reports of the previous two years cannot be a precondition for public tenders. VIPnet also expressed concern, commenting that the state is overpaying the telecom services by hundreds of millions of kunas. T-HT explains that they applied and won the tender according to the Law on public tenders. “Every legal entity has the right to design the tender with all the requirements it feels will ensure that their requested services are fulfilled and within needed time frames. In the telecom sector, cancellations of tenders are quite normal, since the nature of such tenders requires highly specific and complex technical requirements that are specific”, concludes HT.

Competitive market

HGK Disappointed by Old Tender Practices
The President of the Telecom Association of the Croatian Chamber of Commerce, Petar Čavlović highlights that the existence of such tenders are a matter of concern. “After the liberalization of the market these public tenders should have created a competitive market. This only confirms that this is not the case. In my opinion, it is not because of the entrepreneurial milieu but the shortfalls of the system of regulation,” commented Čavlović.

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