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Public Procurement Authority

Complaints and Remedies

In order to make judgements on legal disputes related to public procurement procedures, the legislator established an organisation with special legal status compliant with the remedies directives: the Public Procurement Arbitration Board that operates in the framework of the Public Procurement Authority but technically acts independently. The personnel and material conditions for the efficient operation of the Public Procurement Arbitration Board are wholly funded from the budget of the Public Procurement Authority.

The Public Procurement Arbitration Board is a body with national competence, with the responsibility of conducting legal review proceedings related to unlawful or disputed issues concerning public procurement procedures and design contests, concession procurement procedures, defence and security procurements.

The Public Procurement Arbitration Board is composed of public procurement commissioners, the Chairperson and Deputy Chairperson having a public service relationship with the Authority, in the number set by the Council operating within the framework of the Public Procurement Authority, also appointed and dismissed by the Council operating within the framework of the Authority.

In terms of the public procurement commissioners, the legal guarantee of personal and decision-making independence is that

  • they are subject to strict conflict of interest rules by law;
  • they make decisions according to their convictions on the basis of the law,
  • they cannot be influenced or instructed concerning their decisions.

The legal review proceedings of the Public Procurement Arbitration Board are based on the directives adopted by the European Parliament and the Council, as well as the PPA and its implementing regulations. In the course of its activities, the Arbitration Board also takes into account the judgements of the European Court of Justice that are based on the provisions of the directives. The objective of the legal review procedure is quick and efficient action against infringements related to public procurement. An administrative lawsuit can be filed against the decisions of the Public Procurement Arbitration Board.

The Public Procurement Arbitration Board can take the following decisions in legal review cases ruled on the substance:

  • dismiss unfounded applications,
  • state the lack of infringement as a result of a proceeding launched or conducted ex officio,
  • state that an infringement has occurred,
  • in the cases specified by the law, declare the infringing decision of the contracting authority null and void, and introduce other legal consequences, which may include calling upon the infringing party to conduct a compliant procedure, laying down conditions, imposing a fine;
  • in the case of infringements specified in the PPA, declare the contract ex officio null and void or, under certain conditions, that the contract in question is not null and void,
  • in the case of infringements specified in the PPA, establish whether in the case of a null and void contract, the original state can be restored as a result of the legal consequences of nullity; or
  • upon establishing that the contract is not null and void or that the original state cannot be restored, impose a fine.

Further detailed information is available in Hungarian at the website of the Public Procurement Arbitration Board:

https://dontobizottsag.kozbeszerzes.hu/

Contact:

  • Address: 1026 Budapest, Riadó utca 5.
  • Telephone: 06-1-882-8592
  • Fax: 06-1-882-8593
  • E-mail: dontobizottsag@kt.hu