FAS CONTINUES COOPERATION WITH OECD IN COMPETITION AND PUBLIC PROCUREMENT

The parities emphasize the importance of exchanging experience to prevent cross-border antimonopoly practices, particularly, countering bid-rigging

On 6 February, Moscow hosted an international workshop “Interoperating with public procurement system in the Russian Federation: the best practices and the guidelines to counter bid-rigging”, organized by the Organization for Economic Cooperation and Development and the Federal Antimonopoly Service in partnership with “Deloitte CIS” and Siemens”.

Opening the event, Deputy Head of FAS Andrey Tsyganov, emphasized special importance of the theme.

“Anticompetitive agreements, especially bid-rigging collusion for public and municipal needs, for the needs of state-run companies and companies with government participation, are recognized by Russian antimonopoly law one of the most socially dangerous forms of violating the competition rules. The importance of countering this category of violations was outlined by the President”¹, saidAndrey Tsyganov. “FAS possesses a colossal multi-year experience of exposing and suppressing such violations, particularly, in the course of control, over public procurement and procurement of particular categories of legal entities”.

Statistical data on the relevant FAS work confirm the important of the issue. According to the data, presented by Deputy Head of FAS for Control over Public Procurement Tatiana Loginova, in 2017 FAS considered more than 89 K complaints under No. 44- FZ Federal Law, which is nearly 6%, which is higher than in 2016. The level of consideration complaints regarding procurement by state-run companies was roughly the same as in 2016 - around 7.6 R complaints.

360 cartels were exposed in 2017, including 310 bid-rigging cartels.

Participants specially focused on specific risks and opportunities emerging in the course of procurement or concluding a government contract.

Tatiana Loginova outlined the results of FAS work on investigating complaints about public procurement and amendments to the Law on (No.223-FZ Federal Law) and the Law on contractual system (No.44-) that came into effect on 1 January 2018.

“The procedure for considering complaints regarding procurement of state-rum companies has changed since the New Year. Under 223- FZ Federal Law, FAS has also being able to expand the list of grounds for appealing, which extends the opportunities for businesses to protect their rights. Under No.44-FZ Federal Law, complaints from individuals regarding specialized procurement will be considered under the Law on citizens’ petitions”.

Deputy Head of FAS Anti-Cartel Department Dmitry Artyushenko described the tools used by Russian antimonopoly authority to investigate anticompetitive bid-rigging agreements. He put a special emphasis on new digital tools for concluding and implementing such agreements.

Participants considered international guidelines on integrity of public procurement and leveling the procurement conditions under the frame of competition and studied innovative practices of Russian companies, particularly, they analyzed experiences in public and municipal procurement as well as measures minimizing corruption risks.

Andrey Tsyganov paid special attention to efficiency of international cooperation sand exchanging the best experiences in the filed of competition protection.

“OECD is actively studying certain aspects of improving public procurement system and anti-corruption efforts and violating competitions standards in this segment, and drafts timely recommendation based on the best practices of many countries around the word, including Russia. The significance of such work is clearly confirmed by more than 25-year experience of cooperation between Russian competition authority and this authoritative international organization”, summed up Deputy Head of FAS.

The next joint workshop opens on 7 February 2018 in Kazan at FAS Centre for Education and Methodics.

Reference:

The workshop is part of the events organized by OECD in partnership with “Deloitte CIS” with supports of the Federal Antimonopoly Service.  

In 2017 a series of workshops was carried out in Moscow, St Petersburg and Kazan on antimonopoly compliance under this joint programme.

Attendees included OECDE experts, top officers and specialists of FAS Central and regional Offices, representatives of Russian and foreign companies and research entities.

At each event participants will be able to discuss aspects of doing fair business and corporate management and exchange international and national experience, paying special attention to the experience of companies in the Russian Federation.

The workshops are designed for representatives of Russian and foreign companies, public sector specialists, as well as other persons interested in these issues.

The main objective is to facilitate development of business ethics and compliance employing efficient corporate management.  

¹  No. 618 Order of the President of the Russian Federation “On the basic areas of public policy towards developing competition” of 21 December 2017

² Under Part 1 Article 11 of No.135-FZ Federal Law “On Protection of Competition” of 26.07.2006