More than 96% of procurements by state cos were non-competitive in H1 - Econ Ministry
MOSCOW. July 6 (Interfax) - More than 96% of state companies' procurements according to federal law 223 were carried out on a non-competitive basis in H1, a source familiar with a letter from Economic Development Minister Alexei Ulyukayev to Prime Minister Dmitry Medvedev containing a report by the Economic Development Ministry told Interfax.
"The total volume of procedures for determining the supplier (contractor, worker), which were announced in accordance with the law N223-FZ, was increased by 13% year-in-year in H1 2016 and reached 8.7 trillion rubles. The top five largest clients had 22% of all procurements," the source said, citing the lines in the document.
However, procurements from a single supplier amounted to more than 51%, and procurements with the application of so-called "other methods" amount to more than 45% of the total volume. The sum of procurements from a single supplier rose by 2% in annual terms. Also the number of "other methods" rose suddenly by 300, thanks to which the total number of procedures surpassed 3,800. And under them all procurements from the same single supplier are partially masked, the Economic Development Ministry said, noting that for this sometimes there are even names that suggest the method of procurements: "our favorite method of procurement", "direct choice", "without trading", "single source" or "non-competitive procurement".
The total volume of procurements that were carried out "by other methods", rose in comparison with H1 2105 by 7.2%. "A variety of procurement methods negatively impact the transparency of procurements and fair competition between procurement participants, because this complicates preparations for procurement procedures, it creates prerequisites for the collusion of unscrupulous clients with suppliers," the Economic Development Ministry said.
