Сontrol Mechanisms of the Federal Contract Systems Need Revising

26 august 2015

The Analytical Center has held a round table devoted to violations of regulations in procurements of goods and services for state and municipal needs during which experts discussed what controls the state has in place to ensure adherence to the federal contract system laws, the administrative and court practices as well as the type of complaints received from participants in the purchasing procedures.

‘Today we are talking about the main types of violations in the federal contract system,’ said the Head of the Department for Competition Policy of the Analytical Center Tatiana Radchenko. ‘The focus of attention is the supervisory activities of the Federal Antimonopoly Service of Russia in this area.’ The expert noted that the main problem with monitoring the effectiveness and advisability of existing controls is that there are no comparable and objective data available about complaints, unscheduled audits and open inquiries. According to Ms. Radchenko the data provided by the Federal Antimonopoly Service and the Ministry of Economic Development are insufficient to get an idea about what is going on with violations in the federal contract system, unscheduled audits and new inquiries being opened. 

‘As we were preparing the annual report on the contract system we looked at the procurements and concluded that, unfortunately, controls on the whole do not exist as an element of the contract system,’ noted the expert in public law of the Research Institute of the Higher School of Economics Dmitry Ilyushin. The expert suggested introducing fees for reviewing complaints. ‘In the meantime there are no financial and internal financial controls in place. The newly passed legislation and never adopted bylaws block them,’ Mr. Ilyushin considers. According to him, more active efforts are needed to address this problem.

The SIBUR expert Ekaterina Gorshkova called the attention of the experts to the fact that the requirements that must be met by complaints in order for them to be accepted by the Federal Antimonopoly Service and its territorial branches must be formalized in order to reduce as much as possible the role of individual officials in making decisions about whether or not a complaint warrants a new inquiry.

The results and conclusions of the round table as well as the opinions of regional governments, which are to be solicited additionally, will be used to develop proposals on how to improve the legislation regulating control measures in the federal contract system.