Disputes on public procurement cases
After the adoption by the Supreme Court of the Republic of Kazakhstan on December 14, 2012 of Regulatory Resolution No. 5 "On the application of legislation on public procurement by courts" and the clarification in paragraph 6 when the supplier was considered to have evaded the conclusion of a public procurement contract, errors in the application of paragraph 9 of Article 31 of the previously valid Law "On Public Procurement" are not allowed by the courts, which the practice of considering cases of this category in 2016 testifies.
In accordance with paragraph 1 of the Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan "On the application of Legislation on public procurement by Courts" No. 5 dated December 14, 2012, disputes on the recognition of a potential supplier or supplier as an unfair participant in public procurement relate to disputes arising from a public procurement contract and are considered in a lawsuit.
As a general rule, lawsuits in public procurement disputes are filed at the location of the defendant. At the same time, the courts should keep in mind that claims arising from public procurement contracts that specify the place of execution, at the choice of the plaintiff, are also filed at the place of execution of the contract in accordance with paragraph 6 of art.30 of the CPC RK.
In accordance with Articles 21, paragraph 2, paragraph 4, Article 24, paragraph 1, Article 38, paragraph 1, paragraph 3 of the Law of the Republic of Kazakhstan "On Public Procurement", claims for recognition of a potential supplier as an unscrupulous participant in public procurement conducted by these methods, at the choice of the plaintiff, may also be filed at the place of performance of the contract.
Violation of legislation in the field of public procurement before the conclusion of the contract
In accordance with paragraph 4 of Article 12 of the Law of the Republic of Kazakhstan "On Public Procurement", the register of unscrupulous participants in public procurement is a list of:
1) suppliers with whom the customers unilaterally terminated public procurement contracts, during the execution of which it was established that the supplier did not meet the qualification requirements and requirements of the tender documentation (auction documentation) or provided false information about his compliance with such requirements, which allowed him to become the winner of the tender (auction), the results of which concluded such an agreement;
2) potential suppliers identified by the winners (potential suppliers who took second place) who evaded the conclusion of a public procurement contract;
3) suppliers who have failed to fulfill or improperly fulfilled their obligations under the public procurement contracts concluded with them.
The Law sets the time limits for filing claims for recognition of a potential supplier as an unscrupulous participant in public procurement.
Thus, in accordance with Article 12, paragraph 4 of the Law of the Republic of Kazakhstan "On Public Procurement", in the cases specified in subitems 1) and 3) of Part one of this paragraph, the customer is obliged to apply no later than thirty calendar days from the date when he became aware of the fact that the supplier violated the legislation of the Republic of Kazakhstan on public procurement. with a claim to the court for recognition of such a potential supplier or supplier as an unscrupulous participant in public procurement.
The register of unscrupulous participants in public procurement provided for in subitems 1) and 3) of the first part of paragraph 4 of this Article is formed on the basis of court decisions that have entered into legal force.
The register of unscrupulous participants in public procurement provided for in subparagraph 2) The first part of paragraph 4 of this article is formed on the basis of a decision of the authorized body on recognizing potential suppliers as unfair participants in public procurement.
Suppliers included in the register of unscrupulous participants in public procurement on the grounds provided for in subparagraphs 1) and 3) of paragraph one of paragraph 4 of this article shall not be allowed to participate in public procurement within twenty-four months from the date of entry into force of the court's decision recognizing them as unscrupulous participants in public procurement.
Potential suppliers included in the register of unscrupulous participants in public procurement on the grounds provided for in subparagraph 2) Persons who are not allowed to participate in public procurement within twenty-four months from the date of the decision of the authorized body to recognize them as unfair participants in public procurement.
The information contained in the register of unscrupulous participants in public procurement shall be excluded from the said register no later than one business day from the date of expiry of the period established by parts one and two of this paragraph.
The decision to include a potential supplier or supplier in the register of unscrupulous participants in public procurement may be appealed by him in accordance with the legislation of the Republic of Kazakhstan.
The information contained in the registers, with the exception of information constituting state secrets in accordance with the legislation of the Republic of Kazakhstan on state secrets and (or) containing official information of limited distribution determined by the Government of the Republic of Kazakhstan, is posted on the web portal of public procurement and should be available for review to interested persons without charge.
The register of qualified potential suppliers is a list of potential suppliers who meet the qualification requirements stipulated in the rules for the formation and maintenance of registers in the field of public procurement.
Potential suppliers and suppliers identified in the cases provided for in subparagraphs 1), 2), 27) and 36) of paragraph 3 of Article 39 of this Law are not included in the register of unscrupulous participants in public procurement.
According to Article 13 of the Law of the Republic of Kazakhstan "On Public Procurement", public procurement is carried out in one of the following ways::
1) competition (open competition, pre-qualification competition, competition using two-stage procedures);
2) at auctions;
3) request for price offers;
4) from a single source;
5) through commodity exchanges.
The Customer determines the method of public procurement in accordance with this Law.
Public procurement is carried out on the web portal of public procurement, with the exception of cases provided for by this Law.
The customer has the right to determine the method of public procurement based on the annual volumes of goods, works, and services necessary to ensure the activities of its branch (representative office), provided that such public procurement is carried out on behalf of the customer directly by the customer's branch (representative office).
If there are goods in the list of tangible assets of the state material reserve issued by way of refreshment that meet the customer's requirements, the customer must initially purchase tangible assets of the state material reserve issued by way of refreshment, in accordance with subparagraph 8) of paragraph 3 of Article 39 of this Law in accordance with the procedure determined by the Government of the Republic of Kazakhstan. At the same time, transportation costs, including those related to loading and unloading of goods, are carried out at the expense of the customer. The list of material assets of the state material reserve issued in the order of refreshment is formed by the authorized body in the field of the state material reserve and posted on the web portal of public procurement.
In accordance with paragraph 12 of the Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan "On the application of legislation on public procurement by courts", a potential supplier has the right to appeal against the actions (inaction) of the customer, the organizer of public procurement, commissions, experts, a single operator in the field of public procurement in court if their actions (inaction) violate the rights and legitimate interests a potential supplier.
It follows from the content of the decisions rendered that in this category of cases, the plaintiffs file lawsuits against the defendants: recognizing a potential supplier as an unscrupulous participant in public procurement; challenging the results of public procurement (recognizing decisions of tender commissions and protocols as illegal). Failure of a potential supplier to meet the qualification requirements specified in art.9 of the Law of the Republic of Kazakhstan "On Public Procurement" prevents his participation in ongoing public procurement, and submitting an application in this position indicates the dishonesty of his actions.
As practice shows, the majority of lawsuits are filed by plaintiffs who are customers of public procurement on grounds such as suppliers' evasion from concluding a contract, failure to fulfill or improperly fulfilling their obligations under public procurement contracts concluded with them, coercion to fulfill the terms of the contract, and termination of the contract.
Suppliers are suing with demands for amendments and additions to the public procurement agreement concluded by the parties, for extending the deadlines for work, for recognizing as valid acts of completed work and payment for them.
When considering claims for forcing the customer to amend the terms of the contract, namely for disputes over the adjustment of design estimates for public procurement contracts for construction contracts, the courts proceed from the terms of the contract themselves, the design documentation, that is, they verify the compliance of the works (services rendered) with their terms.
Paragraph 10 of the Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan dated 12/14/2012 "On the application of legislation on public procurement by courts" states that Article 39 of the previously existing Law (currently Article 45, paragraph 2, paragraph 2 of the Law) provides grounds for making changes to the draft or concluded public procurement contract, and that subparagraph 2) paragraph 2 of Article 45 of the Law provides that an increase in the amount of the contract may take place if the design and estimate documentation that has passed the state examination, changes were made and a decision was made on additional allocation of money for the amount of such a change, adopted in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
By virtue of the requirements of Article 386 of the Civil Code of the Republic of Kazakhstan, the contract enters into force and becomes binding on the parties from the moment of its conclusion (Article 393 of this Code). The parties have the right to establish that the terms of the contract concluded by them apply to their relations that arose before the conclusion of the 17th contract. If the legislation or the contract provides for the term of the contract, the expiration of this period entails the termination of the obligations of the parties under the contract. An agreement in which there is no indication of its validity period is recognized as valid until the end of the fulfillment of obligations by the parties specified in it. The expiration of the contract does not release the parties from responsibility for its violation that occurred before the expiration of this period.
By virtue of the requirements of paragraph 10 of the Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan dated December 14, 2012 No. 5 "On the application of legislation on public procurement by Courts", amendments to the public procurement contract may be made during its validity period, since, in accordance with Article 386 of the Civil Code, the expiration of the contract entails the termination of obligations under the contract.
It is also a common practice when courts withdraw claims for recognition of the defendant as an unscrupulous participant in public procurement and termination of the contract for improper performance of obligations, when the customer himself violated obligations to submit relevant documents, for example, under contracts for construction and installation work.
In accordance with the requirement of Part 1 of Article 668 of the Civil Code of the Republic of Kazakhstan, under the contract for design and survey work, the customer is obliged to transfer to the contractor the design assignment, as well as other initial data necessary for the preparation of design and survey documentation.
Similar norms are provided for in paragraphs 1) paragraph 3 of Article 63 of the Law of the Republic of Kazakhstan "On Architectural, Urban Planning and Construction Activities in the Republic of Kazakhstan" dated July 16, 2001, No. 242, as well as in paragraphs 5.4 and 5.5 of SN RK 1.02.-03-2011 "The procedure for the development, coordination, approval and composition of the design construction documentation".
Paragraph 2 of article 45 of the Law "On Public Procurement" provides for an exhaustive list of grounds for making changes to the concluded public procurement contract. A prerequisite for making changes is the invariance of quality and other conditions that were the basis for choosing a supplier.
In accordance with paragraph 2 of Article 402 of the Civil Code of the Republic of Kazakhstan, a claim for amendment and termination of a contract may be filed by a party in court only after receiving a refusal from the other party to the proposal to amend or terminate the contract or failure to receive a response within the time period specified in the proposal or established by legislation or the contract, and in its absence - within thirty days.
It follows from the above-mentioned provision of the law that the legislation provides for a pre-trial procedure for resolving disputes over claims to amend the terms of the contract.
According to paragraph 1 of Article 279 of the CPC, the court leaves the application without consideration if the plaintiff has not complied with the mandatory procedure for preliminary pre-trial dispute resolution established by law for this category of cases and the possibility of applying this procedure has not been lost.
According to paragraph 3 of Article 386 of the Civil Code, if the legislation or the contract provides for the term of the contract, the end of this period entails the termination of the obligations of the parties under the contract.
Paragraph 10 of the Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan dated December 14, 2012 No. 5 stipulates that changes to the public procurement contract may be made during its validity period.
Registration of the public procurement contract
By virtue of paragraph 1 of Article 46 of the Law of the Republic of Kazakhstan "On Public Procurement", the public procurement contract comes into force after it is signed by the customer and the supplier or the latter makes full provision for the execution of the public procurement contract provided for in the tender documentation. If the public procurement contract is subject to registration, it shall enter into force after its registration in accordance with the legislation of the Republic of Kazakhstan.
The list of specifics of the economic classification of expenses, including the types of expenses for which registration of concluded civil law transactions is mandatory, is defined by Order of the Minister of Finance of the Republic of Kazakhstan dated January 27, 2016 No. 30 (prior to that, a similar order of the Ministry of Finance of the Republic of Kazakhstan dated December 19, 2008 No. 588).
Based on this order, registration of a transaction for an amount not exceeding 100 times the monthly calculation index is not required.
In this case, payments are made based on the invoice for payment.
In accordance with paragraph 161 of the Rules for Budget Execution and its Cash Management, approved by the Order of the Minister of Finance of the Republic of Kazakhstan dated December 4, 2014 No. 540, civil law transactions of state institutions enter into force after their mandatory registration in the territorial divisions of the Treasury, except in cases provided for by regulatory legal acts of the Republic of Kazakhstan, when registration of civil law transactions not required.
Based on the above requirements, paragraph 4 of Article 97 of the Budget Code, paragraph 1 of Article 155, paragraph 1 of Article 382 of the Civil Code of the Republic of Kazakhstan, the obligation to register transactions is determined not by agreement of the parties, but solely by legislation.
In accordance with Article 46, paragraph 2 of the Law of the Republic of Kazakhstan "On Public Procurement", the public procurement contract, which is subject to registration in accordance with the legislation of the Republic of Kazakhstan, is submitted by the customer to the relevant territorial subdivision of the central authorized body for budget execution no later than five working days after its conclusion or full payment by the supplier to ensure the execution of the public procurement contract provided for by the tender documentation (auction documentation).
When considering claims for forcing the customer to amend the terms of the contract, namely, disputes over the adjustment of design estimates for public procurement contracts for construction contracts, the courts proceed from the terms of the contract, design estimates, that is, verify the compliance of the work (services provided) with their terms.
Paragraph 10 of the Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan dated 12/14/2012 "On the application of legislation on public procurement by courts" states that Article 39 of the previously existing Law (currently Article 45, paragraph 2, paragraph 2 of the Law) provides grounds for making changes to the draft or concluded public procurement contract, and that subparagraph 2) paragraph 2 of Article 45 of the Law provides that an increase in the amount of the contract may take place if the design and estimate documentation that has passed the state examination, changes were made and a decision was made on additional allocation of money for the amount of such a change, adopted in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
By virtue of the requirements of Article 386 of the Civil Code of the Republic of Kazakhstan, the contract enters into force and becomes binding on the parties from the moment of its conclusion (Article 393 of this Code). The parties have the right to establish that the terms of the contract concluded by them apply to their relations that arose before the conclusion of the contract. If the legislation or the contract provides for the term of the contract, the expiration of this period entails the termination of the obligations of the parties under the contract. An agreement in which there is no indication of its validity period is recognized as valid until the end of the fulfillment of obligations by the parties specified in it. The expiration of the contract does not release the parties from responsibility for its violation that occurred before the expiration of this period.
By virtue of the requirements of paragraph 10 of the Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan dated December 14, 2012 No. 5 "On the application of legislation on public procurement by Courts", amendments to the public procurement contract may be made during its validity period, since, in accordance with Article 386 of the Civil Code, the expiration of the contract entails the termination of obligations under the contract.
Judicial practice is also common when courts refuse to satisfy claims for recognizing the defendant as an unscrupulous participant in public procurement and termination of the contract for improper performance of obligations, when the customer himself violated obligations to submit relevant documents, for example, under contracts for the performance of design and survey work.
In accordance with the requirement of Part 1 of Article 668 of the Civil Code of the Republic of Kazakhstan, under the contract for design and survey work, the customer is obliged to transfer to the contractor the design assignment, as well as other initial data necessary for drawing up design estimates.
Similar norms are provided for in paragraphs 1) paragraph 3 of Article 63 of the Law of the Republic of Kazakhstan "On Architectural, Urban Planning and Construction Activities in the Republic of Kazakhstan" dated July 16, 2001, No. 242, as well as in paragraphs 5.4 and 5.5 of SN RK 1.02.-03-2011 "The procedure for the development, coordination, approval and composition of the design construction documentation".
Paragraph 2 of article 45 of the Law "On Public Procurement" provides for an exhaustive list of grounds for making changes to the concluded public procurement contract. A prerequisite for making changes is the invariance of quality and other conditions that were the basis for choosing a supplier.
In accordance with paragraph 2 of Article 402 of the Civil Code of the Republic of Kazakhstan, a claim for amendment and termination of a contract may be filed by a party in court only after receiving a refusal from the other party to the proposal to amend or terminate the contract or failure to receive a response within the time period specified in the proposal or established by legislation or the contract, and in its absence - within thirty days.
It follows from the above-mentioned provision of the law that the legislation provides for a pre-trial procedure for resolving disputes over claims to amend the terms of the contract.
According to paragraph 1 of Article 279 of the CPC, the court leaves the application without consideration if the plaintiff has not complied with the mandatory procedure for preliminary pre-trial dispute resolution established by law for this category of cases and the possibility of applying this procedure has not been lost.
According to clause 3 of Article 386 of the Civil Code of the Republic of Kazakhstan, if the legislation or the contract provides for the term of the contract, the end of this period entails the termination of the obligations of the parties under the contract.
Paragraph 10 of the Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan dated December 14, 2012 No. 5 stipulates that changes to the public procurement contract may be made during its validity period.
Contractual penalty
Paragraph 1 of Article 43 of the Law of the Republic of Kazakhstan "On Public Procurement" stipulates that draft public procurement contracts are drawn up in accordance with standard contracts on public procurement of goods, public procurement of works and public procurement of services, approved by the authorized body.
By virtue of the provisions of paragraph 13 of this article, the public procurement contract must provide for a penalty (fine, fine) for non-fulfillment or improper fulfillment of obligations under the public procurement contract. The amount of the penalty is determined in accordance with the civil legislation of the Republic of Kazakhstan.
Subparagraph 7.3 of the Model Contract on Public Procurement of Goods (Appendix 19 to the Rules of Public Procurement) provides for retention (recovery) By the Customer, penalties (fines, penalties) from the Supplier in case of late delivery of the Goods in the amount of 0.1% of the total amount of the Contract for each day of delay in case of complete non-fulfillment by the supplier of obligations, or withholding (recovery) of penalties (fines, penalties) in the amount of 0.1% of the amount of outstanding obligations for each day of delay in case of improper fulfillment (partial non-fulfillment) of obligations. At the same time, according to clause 7.3 of the Contract, the total amount of the penalty (fine, fine) should not exceed 10% of the total amount of the Contract.
According to clause 7.4 of the Model Contract, in case of Supplier's refusal to deliver the Goods, or delay in delivery of the Goods for a period of more than one month from the date of expiry of the delivery period of the Goods under the Contract, but not later than the expiration date of the Contract, the Customer has the right to terminate this Contract unilaterally with the recovery from the Supplier of the amount of the penalty (fine, penalties) in the amount of 0.1% of the total amount of the Contract for each day of delay.
As judicial practice shows, plaintiffs (customers) file lawsuits in court to recognize the supplier as an unscrupulous participant in public procurement and to recover a penalty, arguing that the defendant violated his obligations on various legal grounds specified in clauses 7.3, 7.4 of the Model Contract on Public Procurement of Goods.
By virtue of the requirements of Article 293 of the Civil Code of the Republic of Kazakhstan, a penalty (fine, fine) is a monetary amount determined by law or contract that the debtor is obliged to pay to the creditor in case of non-fulfillment or improper fulfillment of obligations, in particular in case of late fulfillment. Upon request for payment of a penalty, the creditor is not obliged to prove the damage caused to him.
By virtue of the requirements of Article 297 of the Civil Code of the Republic of Kazakhstan, if the penalty to be paid (fine, fine) is excessively large in comparison with the creditor's losses, the court has the right to reduce the penalty (fine, fine), taking into account the degree of fulfillment of the obligation by the debtor and the interests of the debtor and the creditor that deserve attention.
Conclusion of a settlement agreement.
Paragraph 9 of the Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan dated December 14, 2012 No. 5 "On the application of legislation on public procurement by courts" establishes that the law provides for the obligation of the customer in case of detection of a violation by a potential supplier or supplier of the Law to file a lawsuit to recognize such a potential supplier or supplier as an unscrupulous participant in public procurement. The court has no right to accept a waiver of a claim and approve a settlement agreement in this category of cases.
174, paragraph 3 of the Civil Procedure Code of the Republic of Kazakhstan establishes that a petition for dispute settlement using conciliation procedures may be filed in any case of claim proceedings, except for cases arising from public law relations, unless otherwise provided by this Code or the law.
Thus, the court has no right to accept a waiver of the claim and approve a settlement agreement in this category of cases.
Appeal of inspection acts and actions of authorized bodies based on the results of inspections
Appeals against actions (inaction), decisions of the customer, the organizer of public procurement, the single organizer of public procurement, commissions, experts, and the single operator in the field of public procurement are regulated by Chapter 9 of the Law of the Republic of Kazakhstan "On Public Procurement".
47 of the Law of the Republic of Kazakhstan "On Public Procurement", a potential supplier has the right to appeal against the actions (inaction), decisions of the customer, the organizer of public procurement, the single organizer of public procurement, commissions, experts, a single operator in the field of public procurement, if their actions (inaction), decisions violate the rights and legitimate interests of the potential supplier.
In case of appeal of actions (inaction), decisions of the customer, the organizer of public procurement, the single organizer of public procurement, commissions, experts, the single operator in the field of public procurement to the authorized body no later than five working days from the date of posting the protocol on the results of public procurement by means of a tender (auction), the term for concluding the public procurement contract is suspended until the end the time limit for reviewing the complaint.
Upon expiration of the period established by paragraph 2 of this Article, an appeal against actions (inaction), decisions of the customer, the organizer of public procurement, the single organizer of public procurement, commissions, experts, a single operator in the field of public procurement is carried out in accordance with the laws of the Republic of Kazakhstan.
A potential supplier's complaint can be submitted via the public procurement web portal using an electronic digital signature to the authorized body. In case of appeal of actions (inaction), decisions of the customer, the organizer of public procurement, the single organizer of public procurement, commissions, experts, the single operator in the field of public procurement to the authorized body within the time limits established by paragraph 2 of this article, the complaint is considered within ten working days from the date of its receipt. The authorized body, no later than one business day from the date of receipt of the complaint, sends a notification to the customer about the suspension of the conclusion of the public procurement contract. Based on the results of consideration of the complaint received within the time limits established by paragraph 2 of this article, the authorized body shall make a decision to cancel or refuse to cancel the results of public procurement. The decision of the authorized body adopted based on the results of the complaint review may be appealed in court in accordance with the legislation of the Republic of Kazakhstan.
In accordance with paragraph 12 of the Regulatory Resolution of the Supreme Court of the Republic of Kazakhstan "On the application of legislation on public procurement by courts", a potential supplier has the right to appeal against the actions (inaction) of the customer, the organizer of public procurement, commissions, experts, a single operator in the field of public procurement in court if their actions (inaction) violate the rights and legitimate interests a potential supplier.
It follows from the content of the decisions rendered that in this category of cases, the plaintiffs file lawsuits against the defendants to challenge the results of public procurement (recognition of decisions of tender commissions and protocols as illegal). Failure of a potential supplier to meet the qualification requirements specified in art.9 of the Law of the Republic of Kazakhstan "On Public Procurement" prevents his participation in ongoing public procurement, and submitting an application in this position indicates the dishonesty of his actions.
Regulatory acts in the field of public procurement
The Civil Code of the Republic of Kazakhstan (hereinafter referred to as the Civil Code of the Republic of Kazakhstan),
The Civil Procedure Code of the Republic of Kazakhstan (hereinafter CPC RK),
Business Code of the Republic of Kazakhstan,
Budget Code of the Republic of Kazakhstan,
The Law of the Republic of Kazakhstan "On Public Procurement" dated December 04, 2015 No. 434-V SAM (hereinafter the Law of the Republic of Kazakhstan "On Public Procurement"),
The Rules for public procurement, approved by the Order of the Minister of Finance of the Republic of Kazakhstan dated December 11, 2015 No. 648, registered with the Ministry of Justice of the Republic of Kazakhstan on December 28, 2015 No. 12590 (hereinafter the Rules).
The procedure for public procurement using a special procedure is determined by the Resolution of the Government of the Republic of Kazakhstan dated December 31, 2015 No. 1200, according to the Rules for Public Procurement using a special procedure. These rules apply to public procurement.:
The procedure for public procurement using a special procedure is determined by the Resolution of the Government of the Republic of Kazakhstan dated December 31, 2015 No. 1200, according to the Rules for Public Procurement using a special procedure. These rules apply to public procurement.:
1) goods, works, and services for ensuring the needs of law and order and national security, information about which constitutes state secrets in accordance with the legislation of the Republic of Kazakhstan on state secrets and (or) contains official information of limited distribution determined by the Government of the Republic of Kazakhstan;
2) goods, works, services, information about which constitute state secrets in accordance with the legislation of the Republic of Kazakhstan on state secrets and (or) contain official information of limited distribution determined by the Government of the Republic of Kazakhstan.
The participation of subjects of the quasi-public sector of the economy is regulated by the provisions of paragraph 6 of Article 1 of the Law of the Republic of Kazakhstan "On Public Procurement", paragraph 4 of Article 166 of the Law "On State Property", according to which purchases of goods, works and services, including the placement of a guaranteed order, by a national management holding, with the exception of the National Welfare Fund, by national holdings, national companies and organizations, fifty percent or more of the voting shares (participation shares in the authorized capital) of which are directly or indirectly owned by the national management holding, With the exception of the National Welfare Fund, the national holding company, and the national company are carried out on the basis of the Standard Rules for Procurement of Goods, Works, and Services approved by the 2nd Government of the Republic of Kazakhstan.
According to clause 2 of Article 19 of the Law "On the National Welfare Fund", purchases of goods, works and services carried out by the Fund and organizations with fifty or more percent of the voting shares (participation interests) owned directly or indirectly by the Fund are made on the basis of Rules approved by the Board of Directors of the Fund.
Thus, the quasi-public sector of the country's economy has actually been removed from the scope of the Law of the Republic of Kazakhstan "On Public Procurement".
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