Gyeongbuk Provincial Assembly Member Lee Dong-eop Calls for Eradication of Excessive Private Contracts in Local Public Enterprises... Proposes 'Accountability Real-Name System'

Selection of Unqualified Companies and Prevalence of Favoritism

Warning Issued to Gyeongbuk Sports Council and Hybrid Research Institute

Lee Dong-eop, a member of the Gyeongbuk Provincial Council (People Power Party·Pohang), urged in a 5-minute free speech at the plenary session held on the 3rd, “Please make efforts to enhance the transparency and fairness of contracts regarding the administrative convenience-oriented private contracts that have been customarily conducted in Gyeongbuk Province.”

First, Councilor Lee Dong-eop criticized the irresponsible administrative situation of Gyeongbuk Province, saying, “Unfair private contract practices such as selecting unqualified companies that do not meet the project purpose, insufficient price verification during the contract process, and favoritism are widespread in local public enterprises and investment institutions in the Gyeongbuk area. Although these issues are pointed out every year through administrative audits, there is no will or effort to improve.”

Gyeongbuk Provincial Council Member Dong-eop Lee

Councilor Lee presented examples of inappropriate private contracts by type, pointing out, “According to the local government bidding and contract execution standards, private contracts should determine the contract amount and counterpart through a price verification process. However, in the past three years, 90% of the private contracts of the Gyeongsangbuk-do Sports Council had identical budgeted and actual expenditure amounts, and the Gyeongbuk Hybrid Parts Research Institute had 241 contracts amounting to 3.7 billion KRW with identical budgeted and actual expenditures.”

Regarding the contract method, the “Act on Contracts to Which Local Governments Are Parties” stipulates that “when concluding a contract, it must be announced and subjected to public bidding,” and as a proviso, “private contracts may be made if deemed necessary.”

In response, Councilor Lee emphasized, “There are no exceptions that take precedence over the principle,” and added, “The administrative convenience-oriented malpractice of proceeding with private contracts solely based on the proviso, regardless of expertise, promptness, or regional specificity, must be eradicated from now on.”

Lee Dong-eop, a member of the Gyeongbuk Provincial Council, proposed, “As alternatives to reduce contract concentration, secure fairness, strengthen transparency, and clarify accountability, I suggest introducing a total volume system for private contracts and a responsibility real-name system for private contracts targeting public enterprises and investment institutions under Gyeongbuk Province,” and strongly urged, “Please make every effort at the Gyeongbuk Province level to break away from customary contracts and enable Gyeongbuk Province to be trusted by its residents and reborn as an honest Gyeongbuk.”

This content was produced with the assistance of AI translation services.