Beneficial Ownership Disclosure in Public Contracts (BG0070)
Action Plan: Bulgaria National Action Plan 2016-2018
Action Plan Cycle: 2016
Lead Institution: Administration of the Council of Ministers
Support Institution(s): NA
Policy AreasAnti-Corruption, Anti-Corruption Institutions, Beneficial Ownership, Legislation & Regulation, Private Sector, Public Procurement
Status quo/Problem addressed: The issue of government contracts, especially those for large infrastructure projects, has been quite a sensitive and has triggered off suspicions with regards to the ownership of applicant companies and undue influence. The existing information gaps in terms of company ownership for the companies applying for or executing government contracts undermines the trust in the public procurement process and raises doubts of covert pressure and corruption. Main objective: To improve the internal control in expending public funds and reduce corruption in the public procurement process. To ensure transparency of company ownership for the companies operating with public funds. Ambition: Improving the business environment, reducing the opportunities for companies whose capital is not public to have competitive advantage as compared to applicants with clear ownership. Deliverables and impact: Limiting the chances of shell companies winning government contracts; putting in place a mechanism for combating corruption and preventing the use of public funds for criminal activities such as money laundering, human, drugs and arms trafficking, etc.; improved control over the beneficial owners of companies; enable banks and other financial institutions and businesses to easily check their business partners.