The Public Procurement Report in the Republic of North Macedonia through the Prism of BENFORD’S Law

Janeska, Margarita and Gjorgjioska, Emilija and Angeloska-Dichovska, Monika and Risteska, Aneta (2023) The Public Procurement Report in the Republic of North Macedonia through the Prism of BENFORD’S Law. In: 8. Scientific Conference with International Participation “Economy of Integration” ICEI2023 SUSTAINABLE ECONOMY AND TOURISM TOWARDS JOINING THE EUROPEAN UNION, December 7th– 8th, 2023, Tuzla, Bosnia and Herzegovina. (In Press)

Text Final THE PUBLIC PROCUREMENT REPORTS IN THE REPUBLIC OF NORTH MACEDONIA THROUGH THE PRISM OF BENFORD’S LAW.doc Download (300kB)

Abstract

Public procurement contracts have a great value for every national economy. Due to the fact that public procurement contracts are one of the greatest expenditures in national budgets, these procedures may be a huge trap for favoritism, irregularities, violation or other forms of corruption. The possibilities for corruption risks are constantly increasing by the complexity of the process, closer interaction between public officials, and entrepreneurs and businessmen on the other side. These risks for manipulations and corruptive actions are present in all the phases of the procedure, until the final realization of the particular procurement.
One of the possible ways to discover the anomalies and possible manipulations in public procurements is by analyzing the reality of the data published in the yearly reports of the public procurement bureau of the Republic of North Macedonia issued in the last five years, by applying the Benford’s law. The Benford’s Law is an important control mechanism that can contribute to increasing of data integrity and information quality of the public procurement statistics reports.
The main objective of this paper is, by applying the Benford’s law to recognize the precision and exactness of the published data, to identify some anomalies and manipulations in the monetary value of concluded contracts, as well as some suspicious parameters that are leading to higher risk level.
The existence of anomalies in the reports from the Public procurement bureau of the Republic of North Macedonia will be identified through five tests: z-statistics, MAD-Mean absolute deviation test, 2 χ - test, Kolmogorov-Smirnov test and Kuiper test. Microsoft Excel will be used to analyze the data.

Key words: public procurement, Benford’s Law, first digit test, anomalies, public procurement contracts, statistical tests.

Item Type:	Conference or Workshop Item (Paper)
Subjects:	Scientific Fields (Frascati) > Social Sciences > Law Scientific Fields (Frascati) > Social Sciences > Other social sciences
Divisions:	Faculty of Economics
Depositing User:	Mr Dimitar Risteski
Date Deposited:	14 Oct 2024 07:14
Last Modified:	14 Oct 2024 07:14
URI:	https://eprints.uklo.edu.mk/id/eprint/10348

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