The Ministry is consistently expanding the ex-ante control as appropriate over all ICT expenditures of the administration, the Minister of Innovation and Digital Transformation said at a briefing in the Council of Ministers
We have introduced full traceability of every euro that the state spends on software and are tightening the rules for access to the sensitive data of Bulgarian citizens. We will not cancel these two decisions. We understand that this may be inconvenient for someone. But we do not work to be convenient. We work to complete the tasks that are important for Bulgaria. This was stated by the Minister of Innovation and Digital Transformation Ivan Vassilev at a briefing in the Council of Ministers in connection with yesterday's open letter from some of the employers' and industry organizations from the ICT sector.
„One of the main tasks facing the Ministry of Innovation and Digital Transformation (MIDT) is to accelerate the digital transformation of processes in the state administration and to develop digital services to facilitate citizens and businesses. The Bulgarian IT business is a natural partner in this process and without joint work between the state and business, we cannot achieve this goal by 2030. I believe that the greater the competition, the better and higher quality services Bulgarian citizens will receive for the billions that we all pay as taxpayers“, the minister explained to journalists.
The open letter claims that the state is “closing the market“ for Bulgarian ICT companies. In response, Vassilev said that the official data for the period 2020-2025 show that this statement is false and that the real subject of the letter is not the principles, but the economic and commercial interest of some of its signatories and pointed out facts. “For the period 2020-2025, over 1 billion and 93 million euros were spent on ICT and e-government. Of these, – 777 million euros were assigned outside of system integration, directly to the market in which the companies that signed the letter operate. 315 million euros are system integration activities, with a significant part of them also returning to the private sector. And in the companies that are members of one of the associations, they receive an additional 61 million euros from these orders“, informed Vassilev.
Regarding competition, the minister emphasized that on the SIGMA platform, anyone can check the contracts of the companies that are members of the associations in question and see whether they themselves have not participated in multiple procedures, without competition, and with only one participant. “If the letter is about principles, its authors have nothing to worry about. The public interest is protected with numbers on the table, not just with open letters“, he commented.
Vassilev added that the information on the SIGMA platform is accessible and gave examples that anyone can see there. “One of the companies received 54.7 million euros from the state under 171 contracts, and 120 were without competition and their offer was the only one. Another company receives 73 million euros for 741 contracts, 225 without competition. A third company receives 290 million euros for 1078 contracts, note - 792 without competition. A fourth company, in a consortium with other companies, receives more assignments from the state's system integrator.
“I agree with the companies that there is no competition. But they have benefited up to this point precisely from this lack of competition. I will work to stimulate competition and ensure that access to public resources is not limited to a few companies close to the previous rulers. The authors of the letter themselves define public procurement as “one of the most strategic markets“, forming up to 25% of the integrators' revenues. "This letter is not a fight for competition, but looks more like claims for public resources and preserving the status quo," Minister Vassilev told the media.
According to him, the open letter reproaches the state-owned company for offering "undervalued prices." "Low prices are not a defect, they are public funds saved." The system integration at the state integrator practically does not generate profit, and the joint assignment has saved the budget over 30 million euros“, he explained and clarified - over 16 million euros saved on licenses for the needs of the Ministry of Finance, nearly 6 million euros saved for the needs of the NHIF, the Ministry of Interior and the National Revenue Agency, over 7 million euros saved in organizing video surveillance of the elections.
“The model that the letter asks for is the same activities plus the commercial margin on 315 million euros, which I spoke about earlier, and the authors owe society an answer to the question – why citizens should pay more for the same“, said the minister.
“In my opinion, the real reason for the dissatisfaction, besides financial, is that the control has tightened. The Ministry is consistently expanding the ex-ante control as appropriate over all ICT expenditures of the administration, which are over 170 million euros per year. The checks identify general formulations, incomplete information and forecast values without justification. Therefore, we are introducing full traceability of each expense from budget planning to implementation, mandatory justification of forecast values, reference prices through the SIGMA system and technical specifications that cannot be changed after the check“, informed Minister Ivan Vassilev. “Each of these measures makes it impossible to inflate orders. The chronology is eloquent. The dissatisfaction of part of the sector intensified precisely when the control ceased to be fictitious“, he added.
Vassilev is categorical that the Ministry's position on who should manage critical systems and state data is clear. “Sensitive information about Bulgarian citizens cannot be easily accessed by private companies that have developed and maintain key systems of the state“, he noted.
He also explained what he meant by key systems of the state. “A private company manages the state's Human Resources system. The same private company issues Bulgarian personal documents abroad. The same private company collects, stores and manages all information related to drivers, vehicles and road violations. The same company performs comprehensive processing of information on road violations from cameras. The same company also knows who is staying in which hotel“, the minister pointed out.
“We can conclude that a private company can quickly and easily check who is traveling with whom, where, in which hotel. Also, which civil servant is appointed where and which civil servant participates in public procurement procedures and what salary he receives. It is important for the state to put all these systems in order and ensure that the data of all Bulgarian citizens is protected, and not as before“, said Vassilev.
In conclusion, he pointed out that the ambitious but realistic task has been set - to make the digital transformation a reality. “Business is the natural partner with whom we will achieve it. But in a way that guarantees quality services at market prices, not at inflated prices. And with real competition, not in tenders with only one participant. The Ministry of Innovation and Digital Transformation continues to work actively and support Bulgarian companies that develop products and services based on innovation and high technologies. Bulgaria has incredible entrepreneurs who develop business at a world-class level, of whom we are all proud. We call on the rest to also dream boldly and not see the state as the only client of their services“, he concluded.