Strengthening Financial Control in Public Procurement as a Way of Counteracting Economic Crimes

Yuliia Moroz; Viktor Konopelskyi; Ihor Zholnovych; Andrey Skrylnik; Alina Danileviča

doi:10.14505/tpref.v17.1(37).20

Yuliia Moroz Department of Private Law, State Tax University, Ukraine https://orcid.org/0000-0003-3873-9751
Viktor Konopelskyi Department of Criminal Law and Criminology, Odesa State University of Internal Affairs, Ukraine https://orcid.org/0000-0003-4068-3902
Ihor Zholnovych Department of Law Enforcement and Anti-Corruption Activities, Interregional Academy of Personnel Management, Ukraine https://orcid.org/0009-0008-9899-6163
Andrey Skrylnik Department of Economics, Entrepreneurship and Marketing, Educational and Research Institute of Finance, Economics, Management and Law, National University «Yuri Kondratyuk Poltava Polytechnic», Ukraine https://orcid.org/0000-0001-9622-4217
Alina Danileviča EKA University of Applied Sciences, Latvia https://orcid.org/0000-0002-2749-2725

DOI: https://doi.org/10.14505/tpref.v17.1(37).20

Abstract

Purpose: The relevance of the study is determined by the need to increase the effectiveness of countering economic crimes through the optimization of control mechanisms in the field of public procurement based on indicator-metric monitoring and institutional stratification. The aim of the research is the formalization and verification of the framework for financial control of procurement, considering anti-corruption metrics, digital monitoring, and algorithmic auditing under regulatory variability.
Methodology: The study is based on the application of the following methods: strategic stratification, econometric modelling, decomposition analysis, synthesis modelling, comparative analysis
Findings: The study verified procurement frameworks through stratification, econometric modelling, and decomposition analysis. It was found that KONEPS has the best baseline performance (Cost Savings – 75%, LCR – 0.002, ROI – 12.5) but is limited by cybernetic inertia. The developed framework outperforms the specified metrics: Cost Savings – 82.7%, ROI – 14.2, LCR – 0.0015, CPI – –8.6, MCR – 0.007. The results demonstrate increased control resilience, institutional coherence, and regulatory adaptability.
Originality: The academic novelty of the research lies in the synthesis modelling of a procurement framework optimized by financial monitoring for multi-level control and traceability. The Price Efficiency Index and Monitoring Cost Ratio metrics were introduced for the first time, while LCR and Control ROI were modernized for metric-based performance assessment. Prospects for further research may be the development of a pilot experiment to implement an optimized framework in a limited administrative environment to assess its institutional integration.

References

Adhi, S., Arifin, R., & Sani, T. (2025). From administrative irregularities to criminal acts: Uncovering corruption in state procurement systems. PAMPAS: Journal of Criminal Law, 6(2), 137–167. https://doi.org/10.22437/pampas.v6i2.43759
Andersson, P. E., Arbin, K., & Rosenqvist, C. (2025). Assessing the value of artificial intelligence (AI) in governmental public procurement. Journal of Public Procurement, 25(1), 120–139. https://doi.org/10.1108/jopp-05-2024-0057
Arnholtz, J., Jaehrling, K., Larsen, T. P., & Refslund, B. (2025). Tensions and experimentation in setting, extending and enforcing working conditions: Case studies of labour clauses in public procurement. Transfer: European Review of Labour and Research. https://doi.org/10.1177/10242589251340030
Baskoro, A. (2025). Combating corruption in procurement: The synergy of law enforcement, civil society, and digital oversight. Jurnal Pengadaan Indonesia, 4(1), 24–39. https://doi.org/10.59034/jpi.v4i1.59
Behar-Villegas, E. (2024). Wasteful government spending and market distortion: An empirical account of modern interventionism’s unintended consequences in public procurement. Revista Procesos de Mercado, 21(1). https://doi.org/10.52195/pm.v21i1.947
Boykin, E., Lofaro, R. J., McCue, C., & Prier, E. (2025). Advancing the practice of public procurement performance measurement: A framework for conceptualizing efficiency and effectiveness. Public Money & Management, 45(4), 349–359. https://doi.org/10.1080/09540962.2024.2361832
Brick Murtazashvili, J., Mylovanov, T., Shapoval, N., & Murtazashvili, I. (2024). The political economy of public procurement in Ukraine. Journal of Public Finance and Public Choice, 39(1), 118–138. https://doi.org/10.1332/25156918y2024d000000005
Cheng, L., Wang, X., Zhang, S., & Zhao, M. (2025). On corporate total factor productivity: Public procurement. Management Decision, 63(1), 76–100. https://doi.org/10.1108/md-12-2023-2389
da Silva, A. S. (2025). Sustainable public procurement: The role of the state in promoting the 2030 agenda. Aurum Editora, 1–10. https://doi.org/10.63330/aurumpub.008-001
de Oliveira Leite, R., Spitz Paiva, B., & Claudio Sacramento, L. (2025). Competition and efficiency in procurement auctions: Evidence from a million Brazilian auctions. Journal of Public Finance and Public Choice, 40(1), 2–22. https://doi.org/10.1332/25156918y2024d000000014
de Vries, M. S., & Nemec, J. (2025). 35 years of public sector reform in Central Europe. Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-80668-1
Forster, R., Lyons, A., Caldwell, N., Davies, J., & Sharifi, H. (2025). A lifecycle analysis of complex public procurement: An agency-institutional theory perspective. International Journal of Operations & Production Management, 45(1), 62–87. https://doi.org/10.1108/ijopm-07-2023-0608
Ghaffari-Tabrizi, O. (2025). Open contracting in the US public sector: Converting procurements from documents to data. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.5272584
Gilbert, T., & Celestin, P. D. M. (2025). Impact of e-procurement on fraud prevention and institutional integrity in public sector procurement across COMESA. International Journal of Engineering Research and Modern Education, 10(1), 37–47. https://doi.org/10.2139/ssrn.5188077
Gorgun, M. K., Kutlu, M., & Tas, B. K. O. (2025). Information is essential for competitive and cost-effective public procurement. Journal of Information Science, 51(2), 445–454. https://doi.org/10.1177/01655515221141042
Hamiza, O., & Rulangaranga, D. M. (2025). Procurement staff familiarity and sustainable public procurement in Uganda: The mediating role of procurement ethical behaviour. World Journal of Advanced Research and Reviews, 26(1), 4124–4148. https://doi.org/10.30574/wjarr.2025.26.1.0852
Henty, P. (2025). Public procurement law. In Architect’s legal handbook (11th ed., pp. 159–172). Routledge. https://doi.org/10.4324/9781003507598-16
Israel, B. (2025). Collaborative relationships: A stimulus for innovation culture and participation of SMEs in public procurement. Management Decision, 63(3), 998–1017. https://doi.org/10.1108/md-08-2023-1338
Jae Moon, M. (2024). Advancing Korea’s digital government. In The Routledge international handbook of public administration and digital governance (pp. 62–78). Routledge. https://doi.org/10.4324/9781003458081-6
Kim, M., & Shin, S. (2024). Assessing the degree of social responsibility integration in socially responsible public procurement in Korea. Preprints. https://doi.org/10.20944/preprints202403.1454.v1
Kobets, D., Vorkunova, O., Yaremenko, L., Krasnoshchok, V., & Zhurba, O. (2025). Using big data to increase the efficiency of business processes in the digital economy of Ukraine. Periodicals of Engineering and Natural Sciences, 13(1), 97–110. https://doi.org/10.21533/pen.v13.i1.279
Kussainov, K., Goncharuk, N., Prokopenko, L., Pershko, L., Vyshnivska, B., & Akimov, O. (2023). Anti-corruption management mechanisms in the EU financial sector. Economic Affairs, 68(1), 509–521. https://doi.org/10.46852/0424-2513.1.2023.20
Lagström, C., & Ek Österberg, E. (2025). Exploring sustainable public procurement through regulatory conversations. Financial Accountability & Management, 41(2), 247–261. https://doi.org/10.1111/faam.12412
Maksum, U., & Suparno, S. (2025). Synergy of administrative and criminal law enforcement in procurement corruption prevention. Journal of Social Science, 4(6), 225–241. https://doi.org/10.57185/joss.v4i6.473
Melnyk, D. S., Parfylo, O. A., Butenko, O. V., Tykhonova, O. V., & Zarosylo, V. O. (2022). Anti-corruption regulation in EU member states. Journal of Financial Crime, 29(3), 853–863. https://doi.org/10.1108/jfc-03-2021-0050
Murzac, A., & Vasiliţa, V. (2025). Analysis of international good practices for preventing fraud in public procurement. Legea şi Viaţa. https://ibn.idsi.md/vizualizare_articol/230721
Nefodova, L., Kushch, V., Bondarenko, M., & Vovk, Y. (2025). Adaptability of Ukraine’s public procurement system. Political Science and Security Studies Journal, 6(1), 34–39. https://doi.org/10.33445/psssj.2025.6.1.6
Negedu, J., Durowoju, O., Foster, S., & Douglas, J. (2025). Sustainable public procurement in low-income countries. International Journal of Business and Economics Research, 14(3), 109–116. https://doi.org/10.11648/j.ijber.20251403.14
Nyathore, P. M., Wainaina, G., Awino, Z. B., & Kariuki, J. T. (2024). Methodology for assessing procurement systems in Kenya. International Journal of Professional Business Review, 9(1), 18. https://dialnet.unirioja.es/servlet/articulo?codigo=9298133
Omata, V. O., Gathoni, B., & Musumba, G. (2025). Fraud opportunities in procurement irregularities in Kenya. International Journal of Research and Innovation in Social Science, 8(12), 3708–3718. https://doi.org/10.47772/ijriss.2024.8120308
Paraskeva, S., & Tsoulfas, G. T. (2025). Mitigating risks in public procurement. Journal of Public Procurement, 25(1), 140–176. https://doi.org/10.1108/jopp-07-2024-0074
Patrucco, A. S., Dimand, A.-M., Agasisti, T., Benedetti, M., Gaeta, M., & Tangi, L. (2025). Managing public sector innovation through procurement. Production Planning & Control, 1–19. https://doi.org/10.1080/09537287.2025.2475286
Pérez-Morote, R., Ribeiro, H. N. R., Calleja-Lozano, J., & Santos-Peñalver, J. F. (2025). Risk and conditioning factors in public internal control. Public Money & Management, 45(5), 487–497. https://doi.org/10.1080/09540962.2024.2390626
Poliova, N., Polova, L., Stepanenko, S., Izmailov, Y., Varenyk, V., & Akimov, O. (2024). Financial monitoring of national business entities. Edelweiss Applied Science and Technology, 8(6), 1455–1466. https://doi.org/10.55214/25768484.v8i6.2262
Puksas, A., Moisejevas, R., & Petkuvienė, R. (2025). Legal frameworks for joint bidding in public procurement. Studia Iuridica Lublinensia, 34(1), 235–257. https://doi.org/10.17951/sil.2025.34.1.235-257
Stamouli, E., Gasparinatou, M., & Kouroutzas, C. (2025). Corruption and public procurement in the health sector. Journal of White Collar and Corporate Crime, 6(1), 17–29. https://doi.org/10.1177/2631309x231157846
Sturm, N. F., Candia, C., Damásio, B., & Pinheiro, F. L. (2025). Firm influence in public procurement. EPJ Data Science, 14(1). https://doi.org/10.1140/epjds/s13688-025-00543-z
Suryani, C., & Setiany, E. (2025). E-procurement and fraud prevention. Kontigensi: Jurnal Ilmiah Manajemen, 13(1), 62–83. https://doi.org/10.56457/jimk.v13i1.751
Telles, P. (2025). Correcting the lost decade of electronic public procurement in the EU. ERA Forum. https://doi.org/10.1007/s12027-025-00851-x
Yanuarisa, Y., Irianto, G., Djamhuri, A., & Rusydi, M. K. (2025). Internal audit of public procurement governance. Cogent Business & Management, 12(1). https://doi.org/10.1080/23311975.2025.2485411