PROSECUTOR’S SUBMISSIONS TO PUBLIC PROCUREMENT CUSTOMERS

On instructions from the General Prosecutor’s Office of the Russian Federation, Prosecutors made 89 submissions on eliminating violations of the law by public procurement customers due to contracts concluded with companies that are held administratively liable for illegal gratification on behalf of legal entities.

The submissions are based upon materials supplied from FAS and the Investigation Bureau of the United People’s Front.

Although the Law on a contractual system directly bans participation of economic entities in competitive bidding in case of committing administrative violations under Article 19.28 of the Code of the Russian Federation on Administrative Violation* within two years prior to filing applications to take part in procurement, some public procurement customers continue allowing such companies to tale part in procurement.

Currently, the General Prosecutor’s Officeis undertaking measures to integrate the Register of legal entities that are held administratively liable for illegal gratification on behalf of legal entities in a common procurement information system, which will simplify the procedure of verifying compliance of bidders with the law.

Head of FAS Anti-Cartel Department, Andrey Tenishev commented: “FAS has analyzed the materials received from the Investigation Bureau of the United People’s Front, cases investigated by the antimonopoly bodies against bid-rigging cartels and collusions with public procurement customers, and exposed numerous violations of the norms of the law, prohibiting participation of companies in bidding that have been held liable for corruption. It once again proves that bid-rigging cartels and corruption go arm-in-arm. We will continue collaboration with the General Prosecutor’s Office of the Russian Federation and will suppress such kind of violations”.

* illegal gratification on behalf of a legal entity