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What needs to be changed in the law on procurement?

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Deputy Chairman of the Board of NCE RK "Atameken" raised issues of state purchases at the Forum of Domestic Commodity Producers

Deputy Chairman of the Board of NCE RK "Atameken" Nurzhan Altaev greeted the guests of the III Forum of domestic producers "Uly dala eli", he expressed gratitude to all participants of the event for supporting the domestic brand. 144 regional winners of the contest "The Best Goods of Kazakhstan" are participating in the Forum, as well as 206 domestic companies of the exhibition "Made in Kazakhstan".

 The Deputy Chairman of the Board of the National Chamber told about the country's business activities and touched upon the issues of state procurement. 

"Our domestic commodity producer largely depends on the factor of state and quasi-public purchases. This is not just satisfaction of the needs of state structures in goods and services, it is an important tool for supporting and regulating the market. In this regard, Atameken pays great attention to this issue. In the implementation of the President's Address, since February of this year the National Parliament has been directly involved in improving the system of procurement. Over 10 meetings were held on the Government's site on these issues", - said Nurzhan Altaev.

It is worth noting that now the state procurement market is approximately 11.6 trillion tenge. Out if this, 2.7 trillion KZT are attributed to public purchases, 3.4 trillion KZT to purchases of the quasi-public sector and 5.4 trillion tenge – to purchases of subsoil users.

The main problems of entrepreneurs are:

  • Lack of stability and information;
  • Lack of transparency in procurement;
  • Issues of improving the competitiveness of domestic producers;
  • Weak control of procurement processes.

"Within the framework of the draft new Law on Improving Procurements, Atameken submitted to the Government a number of amendments: attracting customers to administrative liability for incomplete and untimely publication of procurement plans, centralized procurement, improvement of anti-dumping measures, introduction of unified approaches to preliminary qualification selection (PQS) in public procurements and procurements of a quasi-public sector, the introduction of the responsibility of a quasi-sector, the introduction of uniform procurement rules for all subjects of quasi-public sector", - said Deputy Chairman of the Board of NCE.

Nurzhan Altaev separately noted the great work carried out by NCE RK "Atameken" in conjunction with the Fund "Samruk-Kazyna", which resulted in the signing on 14th of June 14 this year of the Supplementary Agreement providing for amendments to the Agreement on interaction between Atameken and Samruk- Kazyna "in the following areas:

1) Improvement of the reference book of ENS TRU by conducting a full audit of codes and their subsequent approval and revision of the methodology. Currently, the Fund Samruk-Kazyna is conducting a full audit of the ENS TRU codes.

2) Securing the advantages of potential suppliers in PQS in the presence of the Industrial Certificate, with the goal of increasing the competitiveness of commodity producers.

3) The introduction of an institute of independent industry experts that will provide quality control against "adjustment of documentation for a particular supplier" by providing access to procurement processes for industry experts in online mode for the provision of public reports of experts on the results of their activities.

4) Reduction of purchases within the framework of intercompany cooperation, the result of which will be the List of TRUs authorized for use in procurement within the framework of intra-company cooperation.

 Today, there is no liability for officials for violation of the procurement law in the quasi-public sector - the maximum strict punishment for violating the rules is reprimand. In the new draft Law on Improving Procurement, a norm has been introduced to establish administrative liability for violation of legislation in the sphere of procurement of a quasi-public sector.

To participate in procurement for the same TRU on different sites, business has to be guided by different procurement rules. NCE RK "Atameken" considers this extremely inefficient and inconvenient for entrepreneurs. In order to establish common approaches and principles of procurement in the new law, certain procurement rules will be established for all subjects of the quasi-public sector.

On 28th of  July in Astana was launched the III Forum of domestic commodity producers, "Uly dala eli". In order to improve the interaction between producers of domestic goods and their consumers, meetings were organized in the "B2B" format. It should be noted that for the first time the organizers will be both NCE RK "Atameken" and the "Entrepreneurship Development Fund "Damu". In addition, everyone will be able to take part in the drawing of valuable prizes, which will be held daily at 16.00 for the duration of the exhibition.


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