OREANDA-NEWS. April 24, 2009. The Federal Antimonopoly Service (FAS Russia) heard a case against the Directorate on Road Construction of the Sakha (Yakutia) Republic for violating the Federal Law "On State and Municipal Procurement of Goods, Works and Services" and found the complaint of "Mostovik" Research and Production Association" Ltd. ungrounded, reported the press-centre of FAS Russia.

"Mostovik" Research and Production Association" Ltd. petitioned to FAS Russia complaining that the Directorate on Road Construction of the Sakha (Yakutia) Republic had violated the law in organizing the auction for construction of a bridge crossing across the Vostochnaya Khatanga river on the Eldikan-Khandyga road.

The Petitioner complained that its rights had been infringed because the auction commission had unlawfully allowed participation of "KTV" Ltd. in the auction and unlawfully rejected participation of "Stroigazconsulting" Ltd. in the auction.

The FAS Russia's Commission established that the Ordering Party lawfully allowed participation of "KTV" Ltd. in the auction and rejected the bid of "Stroigazconsulting" Ltd.

Upon investigating the case, the FAS Russia's Commission found the complaint ungrounded.

However, as a result of an unscheduled inspection, the FAS Russia's Commission discovered:

- the auction documentation set the requirements to the bidders that must deposit the monetary funds, used as a collateral for their auction bids, to the account of the Ordering Party by the deadline for filing the bids, which contravened Part 4 Article 11 of the Law "On State Procurement…";

- the State Ordering Party can unilaterally refuse to perform the governmental contract, which contravened Part 8 Article 9 of the Law "On State Procurement…";

- the auction bids, and information and documents about a bidder must be signed by the chief accountant, which contravened Part 3 Article 35 of the Law "On State Procurement…".

Having investigated the case FAS Russia found that the Auction Commission of the Directorate on Road Construction of the Sakha (Yakutia) Republic violated Part 8 Article 9, Part 4 Article 11, and Parts 2 and 3 Article 35 the Directorate on Road Construction of the Sakha (Yakutia) Republic. As the discovered violations had not affected the auction outcome, FAS Russia did not issue a determination. However, FAS Russia will see to the possibility of initiating administrative proceedings.

Reference:
94-FZ Federal Law "On State and Municipal Procurement of Goods, Works and Services" came into force in January 2006.

The Law is aimed at increasing transparency of state and municipal procurement, and preventing corruption and abuse to determine the best conditions for execution of governmental contracts. The main objective of the Law is to save state budgetary funds.

In 2008 enforcement of the Federal Law "On State Procurement…" saved the state budget around 260 billion Rubles, in 2007 -168 billion Rubles, and in 2006 -106 billion Rubles.