THE PUBLIC PROCUREMENT REPORTS 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 (2024) THE PUBLIC PROCUREMENT REPORTS IN THE REPUBLIC OF NORTH MACEDONIA THROUGH THE PRISM OF BENFORD’S LAW. ICEI 2023 CONFERENCE PROCEEDINGS. pp. 334-343. ISSN ISSN 2490-2616

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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, �� Ȥ�- test,
Kolmogorov-Smirnov test and Kuiper test. Microsoft Excel will be used to analyze the data.
Keywords: public procurement, Benford’s Law, first digit test, anomalies, public procurement contracts,
statistical tests
JEL: C����Ʉ��, M42, H57, C43

Item Type:	Article
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business Scientific Fields (Frascati) > Social Sciences > Law
Divisions:	Faculty of Economics
Depositing User:	Mr Dimitar Risteski
Date Deposited:	16 Dec 2024 08:25
Last Modified:	16 Dec 2024 08:25
URI:	https://eprints.uklo.edu.mk/id/eprint/10529

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