new public procurement system in the kyrgyz republic · 2020. 5. 2. · corruption control in the...

Public Procurement Department under the

Ministry of Finance of the Kyrgyz Republic

Public Procurement System in the Kyrgyz Republic

Kiev 2017

Legislation of the Kyrgyz Republic on public procurement

O The Law of the Kyrgyz Republic ‘OnPublic Procurement’ No 69 dated May24, 2004;

O The newly adopted version of the Law ofthe Kyrgyz Republic ‘On PublicProcurement’ No 72, dated 3 April 2015;

O By-laws in the area of publicprocurement revised in accordance withthe Law.

The new version of the Law of the Kyrgyz Republic

‘On Public Procurement’

The main emphasis is made on the elimination

of corruption schemes, improved transparency

and strengthened accountability for the use of

budget resources through the introduction of

electronic information technologies.

Corruption control in the public procurement system

O New edition of the Law KR "On Public Procurement" is

aimed at building of the transparent and open system of

public procurement based on the implementation of the

e-tender system, i.e., automation of all tender stages,

from the preparation of tender documentation to the

conclusion of the contract with the vendor and payment

for the supply of goods or services in which the

involvement of officials is minimized.

O In order to ensure transparency of public procurement

and increase competition among the vendors the current

Law requires procuring entities to post tender

documents about the future procurement on the web

portal of the public procurement, zakupki.gov.kg, which

is free for all stakeholders.

Corruption control in the public procurement system

O Under the new version of the Law, the authorized agency forpublic procurement is exempt from permit and licensingfunctions, as well as the function of decision-making aboutprocurement via direct contracting, which resulted in significantreduction of corruption, excluding a chance for maneuveramong the officials.

O According to the Law, the procuring agencies can implementindependently government procurements, includingprocurement by direct contracting, strictly in compliance withthe list of cases specified by the Law.

O As procurement from one source is considered as non-transparent method and in order to ensure transparency thenew Law requires to post information about the procurement bydirect contracting with a detailed description of the procurementprocess: vendor, price and the grounds for the procurement.

ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ

ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ

Corruption control in the public procurement

system

The publication of information about the ongoing tenders and their outcomes in

Internet, first of all, makes that important sector of the government activity open

and transparent for civil society, thus raising the social status of public officials

and serving as an effective instrument of corruption control: now any individual

is able to control the fairness of the public procurement prices from his/her

home or office.

The Internet allows to involve wide range of vendors (contractors) in a tender.

Computerization increases efficiency and reliability of the process at any phase

of the tender significantly reducing the cost and accelerating and simplifying the

procedure of the receipt of the tender documentation, and filing and submission

of the bid. The tender Commission has at its disposal workable means of

systematization and comparison of bids, while the competitive selection

procedure becomes more clear.

Finally, the introduction of electronic public procurement was the necessary

step towards future of Kyrgyzstan when the country becomes the full member

of the rapidly developing global e-Commerce system..

Processing of Complaints



O Prior the adoption of the Law of the Kyrgyz Republic "On PublicProcurement" on April 3, 2015 (No. 72) the complaints were processed in3 stages (the Procuring agency, the authorized Agency, and the Court).

O Currently, in accordance with the effective Law, the complaint-handlingprocess has only two instances: the Commission created by theGovernment of the Kyrgyz Republic and the Court.

O The independent interdepartmental Commission for handling thecomplaints against action or inaction of the procuring agencies andinclusion of unreliable vendors (contractors) in the Database of unreliablevendors (contractors) in the course of public procurement is establishedby the Government of the Kyrgyz Republic and includes the members ofthe public and the certified professionals in the field of publicprocurement. The independent interdepartmental Commission in its workis guided by the Regulations approved by the Government of the KyrgyzRepublic.

O The Authorized government agency for public procurement acts as aSecretariat of the Independent interdepartmental Commission.



O At any stage of the procurement process the Bidders are entitled to lodge complaints

to the independent interdepartmental Commission via web portal of public

procurement.

O The number of complaints and appeals against nonobservance of the requirements of

the Law of the Kyrgyz Republic "On Public Procurement" filed with the Independent

interdepartmental Commission:

O In 2013 - 63;

O In 2014 - 109;

O In 2015 - 403;

O In 2016 – 1038.

O The complaints were categorized according to the subject matter as follows:

O Wrongful decisions of tender commissions;

O Discriminatory criteria, requirements or procedures established for the vendors

(contractors);

O Cancellation of tender results;

O Unjustified selection of the winner in the tender.

O For the purpose of transparency and public control the decisions of the Independent

interdepartmental Commission are placed on the web portal of public procurement.




63 109

403

1038

0

200

400

600

800

1000

1200

2013 год 2014 год 2015 год 2016 год

Increasing number of complaints and proposals

lodged



Upon processing the applications for inclusionof unreliable vendors in the Database ofUnreliable Vendors (Contractors) the Databaselooks as follows:

O 2013 – 5 vendors;

O 2014 – 9 vendors

O 2015 – 18 vendors

O 2016 – 26 vendors.

The Register of Unreliable (unfair) Vendors(contractors) who were included for default ontheir commitment under the contract and forviolations of the rules of participation in publicprocurement procedures is available in an openformat on the web portal of public procurement.




0

5

10

15

20

25

30

2013 год 2014 год 2015 год 2016 год

5 918

26

The number of Vendors included in the Database of

Unreliable Vendors

O The oversight authorities are: the Chamber ofAccounts of the Kyrgyz Republic, the ProsecutorGeneral’s Office of the Kyrgyz Republic, the StateService for Combating Economic Crimes under theGovernment KR, the State Committee for theNational Security of the Kyrgyz Republic, theDefense Council and the Service of internal auditfor the ministries (committees) and agencies.

O In accordance with the Law of the Kyrgyz Republic"On Public Councils in the government agencies"public councils were created to supervise the publicexpenditure, including public procurement, indifferent sectors

Civil Society Involvement in the Oversight Process

O Gradually implement online external and internal auditby creating space on the web Portal;

O Develop capacity of the supervisory bodies, includinginternal and external auditors, by development anddelivery of the tailor-made training on audit andinspection based on their needs;

O Promote public procurement oversight by civil societyand citizens by providing them wider access to thedata in accessible format;

O Highlight the role of public councils in publicexpenditure oversight, including public procurement.

Outlook for the Development of the Supervisory Authorities

Thank you for your attention!

Public Procurement Department

In the Ministry of Finance of the Kyrgyz Republic

new public procurement system in the kyrgyz republic · 2020. 5. 2. · corruption control in the...

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