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Mar. 15, 2007
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State Purchases under Integrated Supervision
The Federal Antimonopoly Service and the Federal Financial and Budgetary Supervisory Service (Rosfinnadzor) have announced the conclusion of an agreement on information sharing on the expenditure of federal budget funds and the making of state purchases. The agencies thus expect to improve control over the spending of almost 3 trillion rubles, that is, the estimated state purchases for 2007. Businessmen doubt that their efforts will lead to greater transparency. The agreement was signed March 6 but only became known yesterday.
Under the agreement, Rosfinnadzor will inform the FAS of violations it uncovers during audits, and “the placement of order in sums exceeding the limits on cash accounts established by the Central Bank,” “raising prices for goods, or services if the law prohibits changing the contract” and “the placement of an order through a request for quotes.” The FAS agrees to inform Rosfinnadzor of “measures taken on material received from Rosfinnadzor.”

The purpose of the agreement, FAS top manager Mikhail Evraev told Kommersant, is to make integrate and conciliate supervision of state purchasing. As things stand now, the FAS supervises competitions for state orders and can prosecute cases only in that area. Rosfinnadzor supervises the spending of budget funds. Now, when one agency finds violations affecting the other, it will inform it. The agencies will also begin conducting unified audits under the agreement. “It will be much more convenient for the contractor,” Evraev commented.

The business community has not reacted with enthusiasm to the agencies' agreement. “Cooperation among state agencies should be regulated by administrative structures, not mutual agreement,” commented Business Russia leader Boris Titov, who warned that the measures could have the opposite of the desire effect.


www.kommersant.com

All the Article in Russian as of Mar. 15, 2007

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