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 of 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 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 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.
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.. ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ
Processing of Complaints 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 of 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
Processing of Complaints At any stage of the procurement process the Bidders are entitled to lodge complaints O to the independent interdepartmental Commission via web portal of public procurement. The number of complaints and appeals against nonobservance of the requirements of O the Law of the Kyrgyz Republic "On Public Procurement" filed with the Independent interdepartmental Commission: 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 O (contractors); 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 O interdepartmental Commission are placed on the web portal of public procurement. ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ
Increas creasing ing numb mber r of com omplaints plaints and propos posals ls lodged ged 1200 1000 800 600 1038 400 403 200 109 63 0 2013 год 2014 год 2015 год 2016 год ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ
Processing of Complaints Upon processing the applications for inclusion of unreliable vendors in the Database of 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 on 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. ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ
The number ber of Vendors dors include uded d in the Database base of Un Unrelia iable e Vendor ors 30 25 20 15 26 10 18 9 5 5 0 2013 год 2014 год 2015 год 2016 год ОФИЦИАЛЬНЫЙ ПОРТАЛ ГОСУДАРСТВЕННЫХ ЗАКУПОК КЫРГЫЗСКОЙ РЕСПУБЛИКИ
Civil Society Involvement in the Oversight Process 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 of 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
Outlook for the Development of the Supervisory Authorities 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 of public councils in public expenditure oversight, including public procurement.
Thank you for your attention! Public Procurement Department In the Ministry of Finance of the Kyrgyz Republic
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