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Public activists criticise the new law on public procurement

Submitted by Вера Александрова on

From 1 January, a new law on public procurement comes into force in Kazakhstan. The Ministry of Finance insists that the changes will increase transparency and reduce corruption risks. However, experts also point out shortcomings.

According to Informburo.kz, the main innovation is the automation of the process and a rating and scoring system. It is noted that the results of such procurements can no longer be appealed. At the same time, a single platform is planned for public procurement.

"As for the downsides, these include shorter deadlines, meaning if the criteria allow five days to appeal a commission's decision. Previously, this was the responsibility of the Department of Internal State Audit, but now the complaint will go directly to the organisers themselves.", noted the Corporate Director of the Association of Legal Entities "Civil Alliance of the City of Shymkent" Yusup Arzykhanov.

Of particular concern to public activists is the new threshold for single-source procurement: goods - up to 100 MCI (369,200 tenge), works and services - up to 500 MCI (1,846,000 tenge), and for rural akimats it has been increased to 4,000 MCI (14,768,000 tenge). Experts believe this could lead to "splitting of lots and increased corruption risks."

Furthermore, the law provides for public oversight of the conduct and execution of public procurement.

Recall that in August, the Director General of the National Centre for Innovation and Entrepreneurship (NCIE), Doctor of Business Administration, Associate Professor at the Institute of Management of the Academy of Public Administration (APA) under the President of the Republic of Kazakhstan, Aslanbek Dzhakupov, raised pertinent issues related to public procurement rules.

In his opinion, the legislation important for business in the field of public procurement is currently being "improved" without proper analysis of the socio-economic consequences and regulatory impact. At that time, the head of the NCIE cited as an example an innovation that involves encouraging territoriality, where companies located in the region where construction work is taking place are given a conditional discount of 1%.