1/8 of Russian government budget for procurement is siphoned annually

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June 12th, 2017 – Fort Russ News – 

KtovKurse – By Inessa Sinchougova

The Gaidar Economic Policy Institute has conducted a study in which it was found out that the amount of violations in public procurement amount to 2 trillion rubles a year.

The most common corruption scheme was favouring of tenders, the work of which could only be carried out by one company.

It was found that more than 60% of purchases across the public sector were made with violations of rules.

The federal budget leads with 32.9% of violations, followed closely by municipality councils (19.6%). Regional budgets are respectively in the third place with the figure at 8%.

Losses from non-competitive conduct in public procurement, as noted by the authors of the study, make up at least 2 trillion rubles a year – one-eighth of all the money that the government spends using the tender process.

The Gaidar Institute gives a number of recommendations to improve the situation on corruption. In particular, it proposes to establish a list of competitive methods of procurement, to develop model regulations on procurement and harmonize the conditions for advance payments.

Also, the Institute considers it necessary to toughen the penalties for violations during the tender procedures.

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