Integrity Authority to challenge the Public Procurement Arbitration Board’s unlawful and unfounded decision in court

The Integrity Authority is challenging in court the unlawful and professionally unsubstantiated decision of the Public Procurement Arbitration Board (PPAB) to void the Authority’s procurement of communication services, following an application for review by New Land Media.

The Authority launched a negotiated procedure on 9 April 2024, with the objective of appointing adequate professional partners for public communication to suppress corruption and promote the values of integrity. Following an assessment by a panel of experts, the results of the public procurement procedure were shared on 9 July 2024, prompting New Land Media to dispute the outcome. The PPAB has voided the public procurement procedure, citing illegalities; however, the identified illegality was not disputed in the procedure’s preparatory phase by New Land Media either.

“I find it disappointing to see that one of Hungary’s biggest media agencies, artificially fattened up on taxpayer’s money, is seemingly more adept in abusing the public procurement system than in the PR profession. Personally, I would have liked to see New Land Media sending experts rather than predominantly lawyers to the event designed to grasp the professional task. I am sure that would have helped them come up with a truly high-standard bid”, said Ferenc Biró, President of the Integrity Authority, regarding the decision.

According to the Authority’s legal stance, the scores awarded to each bid were thoroughly explained in the decision closing the procedure, in accordance with professional rules. New Land Media has accepted the evaluation of the other tenderers’ bids. The agency raised objections against the evaluation of its own bid only at a later stage, following the announcement of a different winner. Others, including the other unsuccessful participants, did not protest against the procedure.

According to the Authority, New Land Media submitted its application for review late, beyond the preclusive period. The application for review should have been rejected due to late submission and lack of a valid basis. The Authority considers the decision made by the PPAB illegal, prompting it to file a petition for judicial review challenging the decision. 

“The PPAB’s unlawful actions and decision to void a procedure controlled and approved by the Public Procurement Authority based on an unsubstantiated application, which was submitted late, beyond the preclusive period, provide additional justification as to why we need a change in economic culture, which I have made an objective of the Integrity Authority”, said Ferenc Biró.

The Integrity Authority is currently exploring how it can achieve its stated strategic objectives, i.e. a change in economic culture and social attitudes towards corruption and the abuse of influence and position through effective communication tools that reach a wide audience.

“The PPAB’s decision sheds light on the weaknesses of the Hungarian public procurement system, which the Authority has pointed out, following adequate investigations, in 4 reports over the past two years: the rules are easily abused and do not serve to ensure that contracting authorities can purchase the right quality of services at the best price”, added Ferenc Biró.