A programme of public procurement and budgeting reforms in Serbian municipalities Supported by: NOVIB LGI/OSI Presented by: Danijel Pantić, M. Sc. Secretary General, European Movement in Serbia

The participating municipalities November 2000, pilot project involving three democratic municipalities: Kikinda, Niš, Čukarica Including 14 interested municipalities as observers Interest expressed through a Letter of Intent Phase two: 29 municipalities divided into 6 groups according to regions

Municipalities involved : Group A: City of Belgrade Čukarica Zemun New Belgrade Group B: Zvezdara Voždovac Savski Venac Grocka Mladenovac

Group C: Kikinda Zrenjanin Vršac Pančevo Apatin Novi Kneževac Sombor

Group D: Kragujevac Kraljevo Užice Kruševac Aleksandrovac Group E: Zaječar Majdanpek Negotin Kovin

Group F: Niš Leskovac Pirot Dimitrovgrad

Reasons to begin Why fight corruption Serbia - among the most corrupt countries judging by the corruption index Why now Change of regime - chance to change the system Why budgeting and public procurement Public expenditures consume more than 50% of the national product Why in municipalities Citizens can see the changes in the behaviour of the authorities immediately

OBJECTIVES: More transparency in managing municipal budgets More transparency in the public procurement process Introducing European standards Improving the work of municipal administration Better communications between the citizens and local government

LONG-TERM OBJECTIVES More rational use of budget resources The citizens and private enterprises more satisfied with the work of municipal services Strengthening the democratic process in local communities

METHOD Final version of project based of findings of pilot projects Cooperation with representatives of municipalities and civil society Creating budget management software for municipalities (INKO) Workshops on budgeting and public procurement Establishing a branch of TI Serbia within EMInS Publishing the Transparency magazine Choosing the Best Municipal Employee campaign Verification of results through subsequent opinion polls conducted in municipalities

ACTIVITIES Phase 1 Establishing an EMInS international expert team Opinion poll on the quality of municipal public services The first workshop on budgeting according to European standards Phase 2 Training municipal employees in public relations Preparing municipal administration guides Designing a national anti-corruption logo The second workshop on budgeting

ACTIVITIES Installment of new budget software and personnel training Seminar on the role of investigative journalism in fighting corruption Choosing the best municipal employee campaign Phase 3 The first workshop on public procurement Proposals for a reform of the system of public procurement in Serbia Lecturers: Jeremy Pope, TI, Wayne Witting, ITC, UNCTAD Developing ideas for improving public procurement

EVALUATION Opinion poll The citizens more satisfied with the work of municipal employees The citizens take a greater interest in the problems municipalities face The citizens believe that the situation will improve

RESULTS Successful cooperation with local authorities and civil society Better communications between citizens and the local authorities Experiences of EMInS/TI serve as examples to other countries Drawing the attention of the public to the problem of corruption A solid foundation for project expansion established

PHASE TWO: THE TASPP PROJECT Assessment of hardware and software capacity in municipalities Training employees to work with new programs Seminars held in regional centres Installing the software and 2 PCs in each municipality A joint municipalities’ website for public procurement Internal linking of PCs in municipal services Continuation of successful activities from phase one Compatibility with the USAID LGI program

BUDGET Software Training of public servants Use of software PLAINING AND MORE RATIONAL BUDGET SPENDING

Internet system of public procurement Joint municipalities’ website Advertising the procurement plan together with a time schedule Information in connection with ongoing tenders Decisions, justification, criteria Public nature of work

PUBLIC PROCUREMENT Internet base PUBLIC PROCUREMENT Municipalities Interested subjects

OBJECTIVES Getting acquainted with procedures based on EU standards Greater transparency and efficiency of public procurement Joint advertising of the municipalities involved leads to more favourable offers Personnel trained for IAS presentations to foreign investors Computerisation of the financial departments of the municipalities involved Technical assistance - 60 PCs in two phases Improving communication between the citizens and local administration