Decision No D. 454/19/2025 by the Public Procurement Arbitration Board

Based on an ex officio initiative submitted by the Integrity Authority, the Public Procurement Arbitration Board (hereinafter: PPAB) found that Csepeli Városfejlesztési és Gazdaságfejlesztési Nonprofit Kft. and the Municipality of Csepel District XXI of Budapest, acting as joint contracting authorities, had breached Section 115(2) of Act CXLIII of 2015 on public procurement (hereinafter: PPA) in respect of their public procurement procedure titled “Public area renovation in Csillagtelep, Csepel”, and imposed a fine on them as a result. 

The PPAB maintains that the joint contracting authorities unlawfully applied the public procurement procedure under Section 115 of the PPA, involving the direct invitation of five tenderers.

Despite the availability of a broad and suitable market, the joint contracting authorities conducted closed and repetitive invitation practices, with minimal rotation between economic operators. The low number of tenders received and the recurring circle of the same successful tenderers resulted in the absence of genuine competition, thereby generating an effect contrary to the principle of equal treatment.

No judicial review has been submitted against Decision No D. 454/19/2025 of the PPAB.