Banking supervision of contracts and technological and price audit are two mechanisms ensuring effective spending of budgetary funds.

5 june 2015 | Bankir.ru

The Analytical Center hosted a National Conference “Banking supervision of state contracts, technological and price audit. Confluence. Problems of regulation”. Representatives of Russia’s major banks, government companies, federal executive authorities, federal constituent territories, and expert organisations discussed the issues named in the title of the conference.

Marina Labozina
Marina Labozina
Department for Legal Expertise

Bankir.ru quotes the Head of the Department for Legal Expertise of the Analytical Center Marina Labozina as saying that banking supervision of contracts and technological and price audit in the construction industry are first of all two mechanisms ensuring the effecting spending of budgetary funds. “We believe that, considering the existing legal regulation, both mechanisms have their respective strengths and weaknesses each,” noted the expert. According to Ms. Labozina, banking supervision serves as confirmation of the transparency of financial transactions, yet is only available for contracts involving amounts in excess of 10 billion roubles. “As far as technological and price audit are concerned, here we are talking about enhancing the competitiveness and the effectiveness of budgetary expenditures, reducing the cost of the project and the construction time,” Ms. Labozina said. “This could all be fine, was it not for an inevitable drawback even here, namely, the lack of necessary legislative regulations.”