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In Almaty, public procurement was reduced by one source
20 may 2019

In Almaty, the share of purchases from a single source for failed purchases was significantly reduced. Previously, with the participation of two or more providers, only one supplier was allowed to compete, and then they directly entered into an agreement from one source. Now, if only one supplier remains, the competition will be held again.

As noted in the executive committee of Almaty, innovations on public procurement introduced into legislation have become a favorable tool for minimizing corruption risks in the field of public procurement. For 4 months compared with 2017, the share of purchases of Almaty government agencies from a single source decreased by 6 times, and from 2018, by 8.5 times. Today, their share is only 6.6%.

By increasing the transparency of tenders and reducing purchases from a single source in Almaty, an increase in savings was achieved compared to just last year from 3.8 to 5.3%. For 4 months compared with 2017, there is an increase in savings of 6.2 billion tenge.

It is worth noting that within the framework of the executivet transformation carried out at the beginning of the year, the Almaty State Assets Office became the sole organizer of government procurement in the city.

Today, 70% of public procurement is carried out in a competitive environment - it is the construction of social facilities (schools, hospitals, clinics), roads, landscaping of streets, parks, courtyards, maintenance of facilities, etc. 28% of purchases are made from one source by direct contracting. Of these, almost half is payment for utilities. One third is the state educational order for payment of education in kindergartens, colleges, schoolchildren’s homes, sports schools and private schools (per capita funding).

“In the past, there was a problem when potential suppliers, seeking to obtain a contract, unreasonably reduced prices (the so-called“ dumping ”), which resulted in improper execution of contracts. For example, almost 90% of purchases for technical supervision services were with dumping from 30 to 99.9%. There were cases when the contract price was only 10 tenge. This accordingly entailed the fact that the supplier could not perform the work and surveys provided for by the contract. As a result, it led to the breakdown of work and the provision of poor-quality services, ”the Almaty akimat said.

Today, a threshold has been set that prevents potential suppliers from continuing to engage in this practice. This means that unscrupulous participants will be eliminated. Another positive aspect was the fact that administrative responsibility for violations on public procurement has been tightened.

Recall that today during the meeting on the fight against corruption, the Head of State Kasym-Zhomart Tokayev instructed to improve the public procurement system.

“Now public procurement is carried out by 25 thousand organizations. Their anti-corruption control is difficult. It is necessary to centralize government procurement with the release of the heads of public institutions, especially the social sphere, from their implementation, ”said the President.

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