Beneficial ownership register and the allocation of public procurement
|Author:||Bc. Andrea Tkáčová|
|Year:||2021 - summer|
|Leaders:|| PhDr. Miroslav Palanský M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Public procurement is a sector vulnerable to fraud and corruption. Owing to a lack of
transparency in both the procurement process and the project delivery process, corruption in
public contracts is relatively frequent, as documented by existing literature. The Anti-money
laundering directives (AMLD) are one of the most important instruments in the fight against
corruption and money laundering in the European Union, including in the area of public
procurement. This thesis investigates whether the implementation of the 4th AMLD to the
legislation in Slovakia, and subsequent obligation to list beneficial owners of companies in the
corresponding register, affected the allocation of public tenders to companies whose owners
had previously been anonymous. We analyse available data on Slovak businesses that
participated in public procurement between years 2014 and 2019 and focus on firms linked to
high-secrecy jurisdictions which could benefit from anonymity of owners prior to the reform.
We hypothesize that the reform negatively impacted the success of these businesses in public
procurement auctions. However, the results of our econometric analysis do not provide robust
evidence of a significant change in the allocation of public procurement around the legislation
change. We conclude that the policy has not had significant impact on the success of previously
anonymous firms in public procurement auctions, suggesting that their advantage was not
derived purely from owner anonymity.