Tuzla Municipality Tender Analysis

Article 67 of the Municipal Law No. 5393, titled "Service commitments extending to future years," states the following: 

"With the decision of the municipal council in municipalities, or the authorized body in municipal affiliates, services such as park, garden, greenhouse, median, sidewalk, and pool maintenance and repair; vehicle rental, supervision, cleaning, security, and catering services; machinery-equipment maintenance and repair works; computer systems and switchboards, and electronic information access services; health-related support services; fair, festival, and exhibition services; services related to dams, treatment, and solid waste facilities; sewer maintenance and cleaning, infrastructure and asphalt construction and repair, traffic signaling and lighting maintenance, meter reading, and meter removal-installation works; public transportation and transit services; and the operation of social facilities may be outsourced to third parties through tenders, provided that the duration does not exceed the end of the sixth month following the first general local government elections." it is stated. 

With the provision in question; 

- Firstly, it permits the issuance of tenders for certain services specific to municipalities (such as median and sidewalk maintenance, fairs and festivals, treatment and solid waste, sewer maintenance and cleaning, meter reading and removal-installation, public transportation) upon the decision of the municipal council in municipalities or the authorized body in municipal affiliates. While Law No. 4734 and Law No. 5018 allow for the tendering of a more limited scope of services in this regard, the Municipal Law permits the tendering of a wider variety of services, taking into account the specific duties of municipalities.

As can be understood from the article provision above, a decision by the municipal council is required for the works listed under service commitments extending to future years.

In Article 5 of the Regulation on Local Administration Budget and Accounting, titled "Budget";

"The budget of special provincial administrations, municipalities, affiliated administrations, and unions is a council decision that shows revenue and expenditure estimates for the fiscal year and authorizes the collection of revenues and the making of expenditures.

In Article 30, titled "Budget decree and the schedules constituting the budget";

"…

(3) The schedules constituting the budget;

h) Commitments Covering Future Years (G) Schedule" provision is included.

The relationship between the strategic plan and the budget is realized through performance programs. Performance programs, which are integrated into the budget preparation process, help ensure that administrative budgets are prepared in line with the goals and objectives determined in the strategic plans.

In accordance with Article 67 of Law No. 5393, commitments covering service contracts extending into future years that require authorization from the municipal council, as well as commitments regarding projects included in the performance program that cannot be completed within the fiscal year, must be included in the (G) schedule attached to the Budget Decree.

According to these legislative provisions, When examining whether the tenders of TUZLA MUNICIPALITY following the local government elections held on March 31, 2024, qualify as "tenders extending into future years" under Article 67 of Law No. 5393; "tenders extending into future years" it was observed that;

Tender Registration No. Name of Work Contractor Contract Price Duration of Work

2024/218070 2024 Park Construction, Park Revision, Field Construction and Revision Works, Procurement of Various Nursery Materials Raha Peyzaj Sanayi Ve Ticaret Limited Şirketi 62,458,202.52 04/03/2024 - 11/04/2024

1--2023/1533616 “2024 Park Construction, Site Construction Repair-Renovation Works, Procurement of Plants, Flowers, and Fertilizer” tender and the tender with IKN 2024/218070 were put out to tender according to the same technical and administrative specifications; the tender numbered 2023/1533616 was cancelled by the Public Procurement Authority decision dated 07.02.2024 and numbered 2024/UY.II-255. Public Procurement Authority decision, the tender  was cancelled. The issue subject to cancellation was not corrected in the technical specifications. The tender should not have been issued. (Evasion of the law) 

2—In determining the type of tender (construction, service, goods) to be issued, the estimated cost is examined, and the tender must be issued based on the type with the highest proportion. For example, if the proportion of goods procurement in this tender is 30%, construction work is 32%, and service work is 38%, the work must be tendered as a service procurement.

3—When the work items to be performed are examined, it is observed that they include park, garden, sidewalk, and pool maintenance and repair, as well as vehicle rental services. As is known, for these works to be the subject of a tender, the tender duration must comply with the Municipal Law No. 5393. In accordance with Article 67 titled "Service commitments extending to future years" the tender must be awarded for a period not exceeding the local government election date of 31.03.2024 + 6 months, which is 30.09.2024. (The tender period for the work in question was set as 03.04.2024 - 04.11.2024.) An action contrary to the law has been taken.

2023/1298646 2024 Cultural and Artistic Event Needs Procurement Service, Abdurrahman Korkmaz, 19,471,000.00, 09.01.2024 - 31.12.2024

—When the work items to be performed are examined, fair, festival, and exhibition services are observed. As is known, for these tasks to be subject to a tender, the tender period must be awarded in accordance with Article 67 of the Municipal Law No. 5393, titled "Service commitments extending to future years," not exceeding the local government election date of 31.03.2024 + 6 months, which is 30.09.2024. (The tender period for the work in question was set as 09.01.2024 - 31.12.2024.) An action contrary to the law has been taken.

2023/1316286 2024 Opening and Fair Organization Service Procurement, Reyyan Organizasyon Eğitim Taş. İnş. Ve Gıda Paz. Tic. Ltd. Şti., 5,871,250.00, 10.01.2024 - 31.12.2024

—When the work items to be performed are examined, fair, festival, and exhibition services are observed. As is known, for these tasks to be subject to a tender, the tender period must be in accordance with the Municipal Law No. 5393 "Service commitments extending to future years" In accordance with Article 67, titled 'Service commitments extending to future years' of the Municipal Law No. 5393, the tender must not exceed the date of 30.09.2024, which is the local government election date of 31.03.2024 plus 6 months. (The tender period for the work in question was set as 10.01.2024 - 31.12.2024.) An action contrary to the law has been taken.

2023/1289734 Vehicle Rental Service Procurement Atak Turizm Sanayi Ve Tic.Ltd.Şti. 14,211,600.00 16.01.2024 - 31.12.2024

—When the work items to be performed are examined, it is seen that they involve vehicle rental services. As is known, for these works to be subject to a tender, the tender period must be set in accordance with Article 67, titled 'Service commitments extending to future years' of the Municipal Law No. 5393, not exceeding the date of 30.09.2024, which is the local government election date of 31.03.2024 plus 6 months. (The tender period for the work in question was set as 16.01.2024 - 31.12.2024.) An action contrary to the law has been taken.

2023/1290575 2024 Year Trip and Accommodation Organization Service Procurement Istanbul, Çanakkale, Konya, Nevşehir, Edirne, Bolu, etc. Azur Organiz. Turizm Taşım.Eğit.Ve Reklam Hizm.Paz.Ltd.Şti. 4,500,000.00 11.01.2024 - 31.12.2024

—When the work items to be performed are examined, public transportation and transport services are observed. As is known, for these works to be subject to a tender, the tender period must be set in accordance with Article 67, titled 'Service commitments extending to future years' of the Municipal Law No. 5393, not exceeding the date of 30.09.2024, which is the local government election date of 31.03.2024 plus 6 months. (The tender period for the work in question was set as 11.01.2024 - 31.12.2024.) An action contrary to the law has been taken.

2023/1230696 2024 YEAR EVENT AND ORGANIZATION SERVICE PROCUREMENT ABDURRAHMAN KORKMAZ 4,534,700.00 02.01.2024 - 31.12.2024

1--When the work items to be performed are examined; it can be seen that there are 100 Hosts/Hostesses and Auxiliary Personnel, 100 people for Historical Peninsula tours and school trips, 100 people for Religious Sites tours, 200 people for Children's Entertainment Venues tours, 100 people for In-District Tour Programs, 250 people for Amusement Park tours, 250 people for Zoo tours, 15 Convoy Supervisors, 10 Guidance Services, and 30 Bus  rentals; therefore, in accordance with Article 67, titled 'Service commitments extending to future years' of the Municipal Law No. 5393, the tender must not exceed the date of 30.09.2024, which is the local government election date of 31.03.2024 plus 6 months. (The tender period for the work in question was set as 02.01.2024 - 31.12.2024.) An action contrary to the law has been taken.

2—Furthermore, as explained above; In accordance with Decree-Law No. 696, it is established that municipalities cannot procure services based on personnel employment. Within the framework of the legislative regulations enacted after Decree-Law No. 696, Article 78.1.3 of the Public Procurement General Communiqué states that services funded by local government or company budgets that are continuous in nature—such as park and garden maintenance and repair, waste collection, cleaning of streets, avenues, and squares, as well as the maintenance and repair of medians and green spaces, weeding, grass cutting, soil cultivation, land preparation, sapling production, planting and care, tree pruning, irrigation, and the rental of vehicles/construction machinery with drivers—shall be considered services based on personnel employment, regardless of the other conditions set forth in Article 78.1.1 of the Public Procurement General Communiqué.

Regarding the tender under review; HOST/HOSTESS AND SUPPORT PERSONNEL 100 UNITS it is observed that these work items are included, and since it is clear that municipalities cannot employ personnel for such tasks under Decree-Law No. 696, the subject matter of the tender pursuant to Article 83 of the Decree-Law No. 696 on Making Certain Arrangements Within the Scope of the State of Emergency is a procurement subject that cannot be put up for public tender due to the regulations in place. Since it is understood that the act of subjecting this procurement to public tender is a process that cannot be remedied through corrective actions, the tender must be cancelled. This corruption I have described was identified during the review of just one tender of a municipality I examined, as it has recently become a topic of public discussion. We know that similar forms of 'legalized' corruption exist in both this municipality and others. We also know that this corruption will be neither the first nor the last. The Presidential administration, regarding the audits/investigations it conducts into opposition-led municipalities  unless this sensitivity is shown in municipalities held by the ruling party, these corruptions will not come to an end.