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Only effective producers should participate in purchases - Timur Kulibayev

15 March 2019
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The Atameken NCE RK has presented new tools to eradicate corruption in procurement at the III Republican Business Forum on Anti-Corruption.

Chairman of the Atameken Presidium Timur Kulibayev noted that the main corruption factors in the public procurement system are the overestimated cost of goods and services,  extensive practice of single-source procurement and price dumping. The National Chamber has already initiated the creation of a single window system for procurement, which allows combining 5 procurement sites at once, including procurement of a quasi-state sector. This system will help potential suppliers to get all the necessary information on interested purchases in terms of industries, regions, prices and volumes.

“The system showed that the total amount of public procurement amounted to 4.4 trillion tenge last year, 75 per cent of which was purchased without competition, that is, there was a single source purchasing. At the same time, the difference in prices for some commodity items between purchase on a competitive basis and single source purchasing reaches 30 per cent,” Timur Kulibayev said.

According to Timur Kulibayev, it is necessary to exclude the ephemeral firms from participation in procurement, they often have no financial or other resources.

“Our proposal is to create a Register of bona fide suppliers. We will insist that only effective producers participate in public procurement, that will entail the significant reduction of corruption crimes. The system will also allow determining the customers that acquire goods or services outside the “middle price corridor,” the head of the Atameken said.

In general, participation in procurement is an opportunity for import substitution.

“We have already offered to identify the need for the volume of goods and services. It is possible to localize production in Kazakhstan at the expense of public procurement and procurement of quasi-sector. This issue is under constant control. We will work to ensure that the procurement system is clear and transparent for domestic producers of goods and services,” Timur Kulibayev said.

The head of the Atameken thanked chairman of the Agency of the Republic of Kazakhstan for Public Service Affairs and Anticorruption Alik Shpekbayev for fruitful cooperation, noting the great potential for further collaboration.

 

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