Domestic manufacturers ask to renegotiate the terms of procurement of JSC “National Welfare Fund “Samruk-Kazyna"

Two hours was not enough to discuss all issues related to the procurement of JSC “National Welfare Fund “Samruk-Kazyna" at the site of the National Chamber of Entrepreneurs of  Kazakhstan "Atameken" in the format of the selectoral meeting with the participation of regions. The problem becomes acute in connection with the introduction of the floating exchange rate of tenge, as a lot questions have accumulated from representatives of the business community.

As noted the Chairman of the National Chamber of Entrepreneurs of Kazakhstan "Atameken" Ablay Myrzakhmetov, NCE regularly receives requests from entrepreneurs who participate in the procurement of subsidiaries and affiliates of JSC “National Welfare Fund “Samruk-Kazyna", in which potential suppliers complain about the lack of transparency of procurement procedures, and the availability of corruption component.

"Trip to the regions, meetings with entrepreneurs, operating in different sectors, shows that the problem is still actual. In this regard, we are opening a series of meetings in the "manual mode" to clearly understand what is happening in the area of ​​procurement, and what changes should be made. Yes, we hear big words about measures taken in this direction. But we can’t say that domestic business is satisfied with the current state, it is impossible", - said the Chairman of the Board of NCE. - "If we can find the optimal way to increase the local content, then, I think, business will thank us all for this support".

Ablay Myrzakhmetov named several major systemic problems in procurement.

"First – it is preparation of the documentation, specifications under a certain supplier, this is typical of all areas. Second - it's unreasonable rejection of the application. There are many violations. The appeal mechanism and monitoring of the procurement process are not effective", - said the head of NCE. This suggests that LLP "Samruk-Kazyna Contract" has no real mechanisms and levers to cancel the tender budgets and to force administrators to work according to the rules.

There was approved a resolution: to consider strengthening of control by the authority; to extend the administrative responsibility on customers and members of tender committees (similar to public procurement); strengthen the powers of NCE observers in tender commissions; to provide photos and video of their meetings, to strengthen the appeal of the results of the tender procedure, regulation of the authority of the Chamber and NCE observers.

Another important issue, according to Ablay Myrzakhmetov, is long-term contracts, which allow producers to plan more precisely the further work process.

"What is going on with the tenge, of course, raises a concern, it is difficult to understand how to work under these conditions. Builders raised reasonable questions about indexing, since everyone imports components, and these points must also be taken into account", - said the head of NCE "Atameken".

Currently, potential suppliers cannot calculate a detailed calculation of goods, works and services, as many components of the calculation are made in foreign currency. Accordingly, suppliers not only see the margins, but can also perform long-term contracts in spite of  the company's loss. Meanwhile, at the conclusion of such contracts margin was implemented as a measure to support the development of domestic producers.

 Therefore NCE proposes to establish a commission with the involvement of the Chamber to review the budgets of long-term contracts, both existing and planned.

Another crucial topic - CT KZ certificates. Since June of this year NCE is empowered to conduct internal auditing of companies, which previously received certifiates.

According to Ablay Myrzakhmetov, as a result of these audits in 15 companies were revoked certificates, which were obtained by fraud. In fact, the products manufactured by these companies did not have local content, of course, it is unfair to the others on the market - a bona fide entrepreneurs. In this regard, today there is a need to create a single register of domestic producers, which will serve as a protective mechanism for entrepreneurs.

"NCE has begun its work on the establishment of the Unified Register of domestic producers of goods, the formation of which will take into account the production capacity, availability of raw materials, specifications of products, product price, volumes of their realization in the domestic and foreign markets, the volume of investments, the labor force. In this regard, we consider it is important to introduce a mechanism of using the Unified Register of national producers of goods in the quasi-public procurement at the stage of development of technical specifications by providing the Fund "Samruk-Kazyna" with a list of domestic producers, which should be observed  by subsidiaries and affiliates of the Fund", - said Ablay Myrzakhmetov.

The event, to which, in addition to businessmen, were also invited representatives of  JSC "NWF" Samruk-Kazyna" and JSC" NC "Astana EXPO-2017", was held in an interactive way: the entrepreneurs were able to directly ask questions and get the answers.

For example, the general director of JSC "KazEnergoKabel" Oleg Kruk raised the issue of the introduction of the prequalification, which, in his opinion, will help to reduce penetration of pseudo-entrepreneurs to the market. This proposal was supported by the representatives of the Fund "Samruk-Kazyna". As reported the chief director on procurement Zhumagali Munzhasarov, in the new Rules of procurement of goods, works and services provided for pre-qualification process.

The businessman also raised the issue of prepayment in procurement. In his opinion, 30% prepayment for entrepreneurs is very small amount in the current economic situation.

"We have a few tools of state support of “long term” loans, and, if there are, then the stakes are very high", - said the businessman. According to him, the advance payment should reach 70%. Alas ... According to Zhumagali Munzhasarova, the current financial condition of the Fund "Samruk-Kazyna" does not allow to increase the size of the advance payment under the contracts.

Oleg Kruk also made a proposal for private (industry) standards in the uniform reference of goods, works and services used by "Samruk-Kazyna". As stated by representatives of the Fund, they are ready to introduce such standards, it needs the Government's decision and the list of associations, the standards of which may be based.

Entrepreneurs complained about the fact that they can’t enter into long-term contracts. On this occasion, Deputy Chairman of  NCE Yuliya Yakupbaeva reported that a working group, which addresses this question every month at the meeting with the First Deputy Prime Minister Bakytzhan Sagintayev. At the last meeting of the working group, all national companies were instructed to provide long-term procurement plans to the end of the year, and to report, which companies have signed long-term contract and in what amount.

Business representatives also suggested to introduce in procurement rules the clause on responsibility of managers of subsidiaries, to create a database of potential suppliers. Businessmen also complained on problems with the dumping of prices on goods.

Another issue that worries entrepreneurs is their involvement in the procurement of "Astana EXPO-2017". It was noted that the procurement of goods, works and services is not carried with participation of domestic producers, and entrepreneurs do not see the company's procurement plans in the annual and mid-term.

According to NCE, at each meeting the representatives of JSC "Astana EXPO-2017" promise to provide procurement plans, but so far no documents were received by NCE (although promises were given in March of this year).

"Atameken" on a permanent basis submits to the JSC "Astana EXPO-2017" Register of domestic producers, and reports on the use of products from the Register of domestic producers of building materials, compiled by NCE. Currently, NCE has formed a Unified Register of producers of goods and is focused on the use of this document in public procurement, and the procurement of quasi-public sector.

The representative of the JSC "Astana EXPO-2017" Anna Boeva said that the company is working closely with the NCE. According to her, through the NCE it gets quotations from domestic producers, and meetings are held periodically in the regions.

"In this regard, NCE offers to study the issue of the creation of a joint working committee, aimed at maximizing the involvement of domestic producers in purchases of  JSC “Astana EXPO-2017 “. For its part, NCE is ready to provide all necessary information on domestic producers to the JSC "Astana EXPO-2017" under the condition of provision of feedback, namely the provision of the full range of goods, works and services for the current and medium term with a reflection of the goods, works and services, which have already been procured", - concluded the Chairman of the NCE Ablay Myrzakhmetov, adding that at this stage it is advisable to agree on common rules of the game.