Public Procurement System in the Kyrgyz Republic Kiev 2017 - - PowerPoint PPT Presentation

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 ‘On

Public Procurement’ No 69 dated May 24, 2004;

O The newly adopted version of the Law of

the Kyrgyz Republic ‘On Public Procurement’ No 72, dated 3 April 2015;

O By-laws

in the area

• f

public procurement revised in accordance with the Law.

The new version of the Law of the Kyrgyz Republic ‘On Public Procurement’

The main emphasis is made on the elimination

• f 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 for public procurement is exempt from permit and licensing functions, as well as the function of decision-making about procurement via direct contracting, which resulted in significant reduction of corruption, excluding a chance for maneuver among the officials.

O

According to the Law, the procuring agencies can implement independently government procurements, including procurement by direct contracting, strictly in compliance with the 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 the new Law requires to post information about the procurement by direct contracting with a detailed description of the procurement process: 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

• f the tender significantly reducing the cost and accelerating and simplifying the

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

• f 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

• f the rapidly developing global e-Commerce system..

Processing of Complaints

ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ

O Prior the adoption of the Law of the Kyrgyz Republic "On Public

Procurement" on April 3, 2015 (No. 72) the complaints were processed in 3 stages (the Procuring agency, the authorized Agency, and the Court).

O Currently, in accordance with the effective Law, the complaint-handling

process has only two instances: the Commission created by the Government of the Kyrgyz Republic and the Court.

O The

independent interdepartmental Commission for handling the complaints against action or inaction of the procuring agencies and inclusion of unreliable vendors (contractors) in the Database of unreliable vendors (contractors) in the course of public procurement is established by the Government of the Kyrgyz Republic and includes the members of the public and the certified professionals in the field

• f

public

• procurement. The independent interdepartmental Commission in its work

is guided by the Regulations approved by the Government of the Kyrgyz Republic.

O The Authorized government agency for public procurement acts as a

Secretariat of the Independent interdepartmental Commission.

ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ

O

At any stage of the procurement process the Bidders are entitled to lodge complaints to the independent interdepartmental Commission via web portal

• f

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.

Processing of Complaints

ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ

63 109 403 1038

200 400 600 800 1000 1200

2013 год 2014 год 2015 год 2016 год

Increas creasing ing numb mber r of com

• mplaints

plaints and propos posals ls lodged ged

ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ

Upon processing the applications for inclusion

• f

unreliable vendors in the Database

• f

Unreliable Vendors (Contractors) the Database looks 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

• n

their commitment under the contract and for violations of the rules of participation in public procurement procedures is available in an open format on the web portal of public procurement.

Processing of Complaints

ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ

5 10 15 20 25 30

2013 год 2014 год 2015 год 2016 год

5 9 18 26

The number ber of Vendors dors include uded d in the Database base of Un Unrelia iable e Vendor

• rs

O The oversight authorities are: the Chamber of

Accounts of the Kyrgyz Republic, the Prosecutor General’s Office of the Kyrgyz Republic, the State Service for Combating Economic Crimes under the Government KR, the State Committee for the National Security

• f

the Kyrgyz Republic, the Defense Council and the Service of internal audit for 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 public expenditure, including public procurement, in different sectors

Civil Society Involvement in the Oversight Process

O Gradually implement online external and internal audit

by creating space on the web Portal;

O Develop capacity of the supervisory bodies, including

internal and external auditors, by development and delivery of the tailor-made training on audit and inspection based on their needs;

O Promote public procurement oversight by civil society

and citizens by providing them wider access to the data in accessible format;

O Highlight

the role

• f

public councils in public expenditure 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