The Benford´s Law (first digit Law) in the public procurement of fuels and lubricants in Paraguay. Period 2014 - 2023

Abstract

This research project arises from Paraguay's need to efficiently use resources in public procurement of fuels and lubricants. This is crucial because Paraguay, as a landlocked country and net importer of fuels, requires significant sums for their acquisition. These resources are then utilized by various public institutions such as health and internal security for their services to function properly. The methodology employed is Benford's Law, also known as the First Digit Law, which despite lacking a theoretical foundation, holds strategic empirical importance. The main objective of this study is to identify potential anomalies or irregularities in public procurement of fuels and lubricants in Paraguay from 2014 to 2023. Results indicate anomalies in digit frequency across three analysed variables: awarded amounts, number of contracts awarded or bidders awarded per process, and number of bidders per process. The study concludes that it is of utmost importance to promote competition in public procurement within this sector.