Danish municipalities wasting millions of taxpayer money – The Post

Danish municipalities wasting millions of taxpayer money

Finance Ministry argues municipalities could save millions if they shopped through procurement centres

Danish municipalities waste public resources on buying everything from USB-sticks to playground equipment (photo: iStock)
September 15th, 2015 2:05 pm| by Lucie Rychla

Danish municipalities waste billions of kroner buying products and services for more than is necessary, reports DR.

Most of the money is wasted when municipal employees buy supplies individually instead of in bulk for considerable discounts.

At Næstved Municipality, for instance, a public employee bought furniture for the municipal school leisure arrangements for 800,000 kroner – a deal that would have been 550,000 kroner cheaper had it been bought through the municipal supply contract.

No benefit for public
The municipalities have long had a bad reputation for purchasing overpriced supplies.

According to the Finance Ministry, municipalities could save more than half a billion kroner a year if they made better purchase choices.