The headquarters for public procurement “Peru Purchasing” – the most important management body for procurement and public procurement in Peru – announced in a press release on September 2nd that it had exceeded the parameters of digital procurement A total of 154,400 orders have been registered on the blockchain since this technology was implemented to ensure transparency and the fight against corruption in public procurement.
The 154,400 public orders registered on the blockchain des Central de Compras Públicas and managed by Peru Compras, corresponds to a contracted amount of 1,54,375,120, 80 soles, which is approximately $ 430 million.
The Peruvian organization Peru Compras is a public body affiliated with the Ministry of Economy and Finance of the region with the aim of optimizing public procurement across the country.
On April 15, 2019, the use of this disruptive technology for orders from electronic catalogs was introduced in order to take advantage of their own qualities and in this way achieve its goals, which is why it is the first country to use blockchain technology for these processes in Latin America, according to the press release.
He also referred to it precisely With this innovative tool, Peru Shopping was invited to the #InspiraDigital 2020 event organized by Inspira It CONSULTINGJesús de Souza Castro, Head of Information Technology Bureau of Peruvian Purchasing, said that, from August 24th to 28th, representatives of public and private institutions from Latin America and the Caribbean, a company that aims to use information technology to help companies optimize their business processes his colleagues from Ecuador, Colombia, Bolivia, Chile and Puerto Rico explained his contribution of the Peruvian experience to the digital transformation in public procurement.
Blockchain in government procurement
The main body for public purchases and procurement in Peru mentions that, through blockchain technology, each of the various orders submitted by the Peruvian state, as well as the respective offers they receive, are registered in several servers (nodes) that ensure that the information is not corrupted thanks to the use of this disruptive technology that allows the order data to remain immutable and available to everyone.
Each order has a QR code that gives access to the original document of the order in PDF version, which can be read with any smartphone to verify the authenticity of the document.
The article describes that blockchain ensures the availability and immutability of data in the classic purchase process (a single destination with a single delivery), purchase by package, partial deliveries (a single destination with multiple deliveries), deliveries with multiple destinations (multiple destinations with) a single delivery) and a combination of the latter (multiple destinations with one or more deliveries).
The Peru Shopping solution is supported by the Law on Transparency and Access to Public Information. This entity has considered it expedient to use the blockchain for two purposes: firstly, to mark orders to generate traceability and secondly, to change the data of offers, this guarantees this during the entire selection process of the bidder winner, nobody can change the data directly in the database (if he has access) without leaving a trace that the fraud was carried out. Therefore, it is a high quality audit trail to ensure transparency of the entire process.
Orders are registered on the LAC chain network blockchain, which is managed by the Inter-American Development Bank (IDB) through BIDLab. In addition, all “hashes” or digital evidence are recorded in a PDF document containing a timestamp and signature created by Bigdavi using INDECOPI-accredited software from the company that also provides digital certification services, the LAC chain Node.
Reference in Latin America
Undoubtedly, more and more government agencies are choosing blockchain technology to ensure transparency in the government procurement process and to give legal validity to the documents issued. Experts and analysts knowingly point out that blockchain technology is an effective tool against corruption.
To promote the development of a blockchain ecosystem in Latin America and the Caribbean, representatives of the Guatemalan Ministry of Finance, Juan Carlos Clara del Cid and Jackeline Melgar Palacios, held working meetings with representatives of Perú Compras to share experiences during a visit to Peru last year to optimize the management of the homologous unit called Guatecompras, who highlighted that Perú Compra is a benchmark in Latin America for the use of blockchain technology to strengthen transparency and fight against Guatcompras corruption in public procurement.
It should also be noted that the application of this technology to public tenders in the Latin American country has crossed borders and has drawn South Korea’s attention to the platform and how it works within these public processes.
Companies like Everis, IBM, and Microsoft Corporation are some of the technology companies that have introduced the basics of this technology and its application to transactions that focus on public purchases to reduce corruption in purchases and prevent public in Latin America and the Caribbean.
In addition to Peru, we watched the World Economic Forum recently promoting the use of technology in Colombia to combat vice in public procurement as part of efforts to fight corruption in the coffee-growing country. .