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Irregularities in North Macedonia’s 202 bus procurement lead to financial loss and legal proceedings

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  • North Macedonia

Irregularities in North Macedonia’s 202 bus procurement lead to financial loss and legal proceedings

Case Date(s)
07/2021
Case Updated
09/2023

Case Summary

Phase

Enforcement

Offence

  • Abuse of functions

Sector

  • Public administration and defense; compulsory social security
  • Transportation and storage

Institution

  • Ministry of Transport and Communications

Involved people

Allegedly involved people Mile Janakievski Ex-Minister of transport and communication
Mile Janakievski
Politically exposed
Yes
  • Abuse of functions
Allegedly involved people Snežana Filipovska Pavleska President of the commission for public procurement in the ministry
Snežana Filipovska Pavleska
Politically exposed
No
  • Abuse of functions
Allegedly involved people Julijana Lankulovska Atanasova Member of the commission for public procurement
Julijana Lankulovska Atanasova
Politically exposed
No
  • Abuse of functions
Allegedly involved people Igor Janushev Member of the commission for public procurement
Igor Janushev
Politically exposed
Yes
  • Abuse of functions

The case of the 202 double-decker bus procurement in North Macedonia exposed irregularities in public tenders, leading to financial losses and legal proceedings against former officials for abuse of office and corruption.

The case involves the government’s procurement of 202 public buses, with four suspects, including Mile Janakieski, then minister of transport and communications, and members of the public procurement commission: Snežana Filipovska Pavleska, Igor Janushev and Juliana Lankulovska Atanasova.

This corruption case was initiated by the special public prosecutor’s office (SPO) based on intercepted materials, with an investigation officially opened on 10 October 2018. Following the dissolution of the SPO, active cases were transferred to the basic public prosecution for prosecuting organised crime and corruption, leading to a three-year delay before the indictment was filed on July 14, 2021.

The prosecution examined two failed tenders and one successful tender (2008 to 2010), with particular interest in the third tender, which included a controversial retro design requirement that awarded an extra 20 points, a condition personally introduced by then-prime minister Nikola Gruevski, in violation of public procurement regulations.

In this tender, two companies submitted bids: Yutong (China) and King Long (a Chinese company, through its representation in Bulgaria). Despite offering a close to €5 million lower bid, King Long was ranked second due to failing to meet the design criteria. The procurement commission favoured Yutong, despite its failure to meet key requirements, such as lacking the ISO 9001:2000 certification and a bank guarantee at the time of opening the bid documentation

Instead of annulling the flawed process, Minister Janakieski signed the contract with Yutong on 14 April 2010, resulting in €4,772,920 of damages to the Republic of Macedonia's budget.

The trial began in March 2022. At the first hearing, Janakieski, Snežana Filipovska Pavleska and Juliana Lankulovska Atanasova pleaded guilty and received two-year suspended sentences, conditional on not committing new criminal offence within five years.

The trial continued for Igor Janushev, who pleaded not guilty. However, just one day after amendments to the criminal code were passed in the parliament in 2023, the court issued another two-year suspended sentence, but due to amendments to the criminal court, the case had reached the statute of limitations.

Further details

JURISDICTION/COURT

Basic criminal court Skopje

LAWS (ALLEGEDLY) BREACHED

Criminal code – Article 353, para 5, in relation to para 1 in relation to Article 22, Abuse of official position and authorisation;

The law on public procurement

FINAL SANCTION OR MEASURE

For Mile Janakieski, Snežana Filipovska Pavleska and Juliana Lankulovska Atanasova 2 years suspended prison sentence after they admitted guilt.

For Igor Janushev, 2 year suspended prison sentence, but his case reached statute of limitations following amendments to the criminal code.

UNCOVERING METHOD

Secret service - wiretapped materials from the illegal wiretapping scandal

PROSECUTOR

Lile Stefanova

JUDGE

Osman Shabani

SOCIAL HARM ON SDGs

16 Peace, justice and strong institutions

The case of the procurement of 202 double-decker buses in North Macedonia revealed significant irregularities in public procurement processes, resulting in social and economic harm. The selection of the Chinese company Yutong, despite not meeting essential bidding criteria, led to a loss estimated at €5 million. This misallocation of public funds reduced resources available for other public infrastructure improvements, affecting overall service quality in Skopje’s public transportation.

Beyond financial damage, the case undermined public trust in institutions. The manipulation of tender criteria and favouritism towards a specific bidder suggested a lack of transparency and accountability, reinforcing perceptions of systemic corruption. Such practices erode citizens' confidence in fair governance and discourage competition in public tenders, potentially deterring reputable international companies from bidding in the future.

Disclaimer

Every effort has been made to verify the accuracy of the information contained in this database. All information is believed to be correct as of 09/2023. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts.

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