HR
Prevention of Conflict of Interest

Prevention of Conflict of Interest

ARTICLE 13 OF THE PUBLIC PROCUREMENT ACT – PREVENTION OF CONFLICT OF INTEREST
 
Pursuant to Article 13 of the Public Procurement Act (OG 90/11, 83/13, 143/13 and 13/14), the contracting authority shall not enter into public procurement contracts with economic operators:
  • if the representative of the contracting authority at the same time performs management-related activities in the economic operator, or
  • if the representative of the contracting authority holds a business share, stock or
  • other rights entitling it to participate in the management, that is, capital of the economic operator by more than 0.5%,
as the above cases contitute the CONFLICT OF INTEREST.
 
Representative of the contracting authority means:
  • the head of a body of the contracting authority, member of the management or supervisory body of the contracting authority, and its related persons (a spouse or a life partner, a blood relative in the direct line, siblings, and adoptive parent or a foster child)
  • the authorised representatives of the contracting authority in the specific public procurement procedure  and other persons who have impact on decision making in the specific public procurement procedure.
 
If a person related to the representative of the contracting authority, or a member of the management or supervisory boards of the contracting authority acquired their business share, stock or other rights entitling them to participate in the management, that is, capital of the economic operator by more than 0.5% in the period of more than two years before the representative of the contracting authority that is related to was appointed or took over its duties, the conflict of interest does not apply.
 
The application of this provision does not prejudice other obligations that in such cases refer to persons obliged by the special regulation on the suppression of the conflict of interest.
 
The conflict of interest provision shall also apply when a representative of the contracting
authority or a person related to the representative of the contracting authority has transferred their ownership share to another person or a specific body (trustee) pursuant special regulation on the suppression of the conflict of interest.
 
A situation where the representative of the contracting authority or the person related to the representative of the contracting authority performs management-related activities in the economic operator as an official representative of the contracting authority, and not as a private individual shall not be regarded as a conflict of interest.