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Government will decide which products will be up for electronic auction

Economy
aramyan

At the beginning of “Legislative changes in the procurement system” seminar organized by the Ministry of Finance in Tsaghkadzor, Deputy Minister Karen Tamrazyan noted in his speech that the legislative changes will come into force starting from April 26. Why it was decided to shift to a new system, he thinks that the reason was ensuring transparency of the procurement system, investment of a system of appeals. Compared with 2015, in 2016 the number of participants in the procurement process has decreased; the reason was the shift to the electronic system. One of the reforms was that the members of the board of appeals will not be dependant; Prime Minister will present, President will approve. Minister Vardan Aramyan in reply to the journalists noted that the more formal demands are put before the participants of procurement tender, the more difficulties come forward, “The aim of procurement system is carrying out efficient procurement at low price. In reply to the question that mainly the people linked to the officials are the participants and winners of the state procurement, the media outlets know those officials from here and there, as Armenia is a small country. By participating in the tender, the company together with the bid presents the list about its owners, by which relationship with the officials is revealed.” If it is found out that the member of the procurement implementation board and the owner of the participating company are connected, so, according to the Minister, the mechanism of the withdrawal can operate here, “The system of punishments will also work. I want to say that the Procurement system cannot answer all the questions; that is a function of investigative bodies. We have also preventive measures, which reduce corruption risks- an explicit declaration of interests, it is the only means of fight. Sergey Shahnazaryan, Head of Public Internal Financial Control and Public Procurement Methodology Department, noted that up to AMD 1 million procurement is free, without tender, and are carried out from one person, “In case of procurement of similar products not exceeding AMD 70 million, the system of electronic auction operates, according to which during some period the company offering the lowest price is decided. But, for example, tender is implemented in case of construction activities. One winner is recognized which offers lower price.” At the decision of the Government a list will be set on which products will be up for electronic auction.