Audit Chamber: purchasing practices in subsurface resource area need review
MOSCOW. Jan 21 (Interfax) - Purchasing practices in the subsurface resource area need review, Audit Chamber Auditor Bato-Shargal Zhambalnimbuev.
"Long-running procurement practices in the resource use area, which do not meet current requirements, need review," Zhambalnimbuev said following Natural Resources and Environment Minister Sergei Donskoi report in the State Duma.
The main shortcoming of current practice is the lack of project documentation, weak competition and inaccurate cost estimates.
"This approach makes it possible to shape the terms of a competition to appeal to a limited circle of participants, for example, subordinate organizations," he said.
In 2001-2013, for example, state enterprises subordinate to Russian subsurface resource agency Rosnedra were the only bidders - and, consequently, the winners - in nearly all competitions. Meanwhile, 40% of the auctions and tenders failed to find a buyer in 2013. That percentage rose to 44% in 2014.
The Audit Chamber has submitted proposals to the Natural Resources and Environment Ministry on ways to revise current practice.
