Appealing the conclusion of the State Audit Service

The State Audit Service monitors procurement procedures. There is a specific legal act that regulates the activities of this state body. It is about the Law of Ukraine “On Public Procurement”. Specialists of the mentioned service are tasked with monitoring how the parties comply with the legislation in force in this area. The audit covers the procurement process itself, the conclusion of the contract and the interaction of the parties during its execution. Thus, the State Audit Service ensures that the current legal norms are not violated in the field of public procurement.

If you are interested in challenging the conclusion of the State Audit Service or other issues related to interaction with this state body, you can receive qualified advisory support and support from the lawyers of the Prikhodko&Partners law firm.

What does the State Audit Service check and what does its conclusion mean?

The State Audit Service carries out procurement audits when there is one of the grounds established in Article 8 of the above-mentioned law. The list of such reasons is exhaustive. Notification of the start of monitoring is not a reason to stop procurement. It is also not required to terminate the contract.

The best way to avoid a negative conclusion from the State Audit Service during monitoring is to comply with current legislation during procurement procedures. But at the same time, this does not become a guarantee that you will completely protect yourself from the subjective interpretation of both your activities and legal norms by representatives of the State Audit Service.

If, during the monitoring, the tender was canceled or recognized as not having taken place, the State Audit Service notes the description of the violation, but there is no longer any obligation to eliminate it.

The main violations that can be detected by representatives of the State Audit Service are:

1. non-compliance of the tender documentation with the requirements set for it by the current legislation;
2. changes in the contracts that were made without any grounds for this;
3. failure to provide explanations requested by representatives of the State Audit Service;
4. non-rejection of tender offers that should have been rejected.

It is these violations that can be reflected in the conclusion.

What are the consequences of the conclusion of the State Audit Service?

The representatives of this service are authorized to demand that the parties terminate the contract, which was concluded based on the results of the procurement. Termination of the contract is an exceptional measure. It can be applied when the State Audit Service sees violations that lead to abuses and corrupt practices. At least, this is what the law defines. Practice often shows otherwise. There are common cases when the contract is encouraged to be terminated already at the stage of execution. Moreover, not in all situations there really is a risk of abuse.

What does it look like in practice?

For example, the contract has already been fulfilled by 50 or 65 percent, and the customer is faced with the need to terminate it in a short period of time. Next, the customer faces the next challenge – he needs to provide himself with the necessary goods or works (or services). When it comes to non-disruptive consumer goods, this makes the task even more difficult. That is why, when you know that the representatives of the State Audit Service are wrong in their conclusion, you should defend your rights and legitimate interests. Using the help of professional lawyers, it will be significantly easier to do.

The procedure for appealing the conclusion of the State Audit Service

You have 10 days to appeal such a conclusion. The appeal process takes place through the court (as part of administrative proceedings). Our team specializes in supporting such cases, so we know how to act to defend the rights of our clients.

Law office “Prikhodko&Partners” works in several areas at once:

• Consultancy. During the consultation, we will answer the questions relevant to you and guide you in the prospects of challenging the conclusion of the State Audit Service.
• Legal support. For example, we can help you correctly formulate the explanations you provide at the request of the State Audit Service.
• Representation in court. This is precisely what is envisaged under the appeal of the conclusion of the mentioned service.

Contact us – we will help in a high-quality and professional manner.