The businessman bought the expensive equipment to perform the obligations under the contract, which was unexpectedly terminated

At the meeting of the Council for the protection of the rights of entrepreneurs of NCE RK "Atameken", chaired by Gani Kasymov, again was considered the question of unfairness in the process of public procurement. LLP "Geotech Corp" for 2 years provided printing services and converting of invoices for utility services of LLP "Astanaenergosbyt". However, in 2016 LLP "Astanaenergosbyt" terminated the contract with LLP "Geotech Corp." due to the fact that the subordinated company to Akimat of Astana city - JSC "Astana-ERC" started to issue invoices. The latter announced a tender procurement of those services in the amount of 60 million tenge, but in connection with detected violations it was canceled by the Inspectorate of financial control. Subsequently 4 more competitions were announced, which were also canceled or not held. "Astana-ERC" unlawfully entered into a contract with JSC "Kazpost", which was also terminated after 2 months by the Inspectorate of financial control. The last three tenders "Astana-ERC" announces among disability organizations and does not allow for competition an independent supplier - LLP Center of Rehabilitation Services "Invataxi" (which leased the equipment to print invoices from LLP “Geotech Corp.”). Management of LLP "Geotech Corp." states that LLP "Astana-ERC" is willing to work only with JSC "Kazpost". At the same time, according to the applicant, its proposal and the proposal of some other members of procurement are significantly lower than the cost of services of JSC "Kazpost" and the preference that the customer gives to Kazpost arises legitimate questions from the inspectors of public bodies.

It is worth noting that LLP “Geotech Corp.” acquired expensive equipment in order to participate in this competition and now as a result of violent repression may go bankrupt.

"Yes, LLP" Geotech Corp." has bought equipment abroad for big money, taking into account the five-year contract with "Astanaenergosbyt". Indeed, there was a contract, i.e. business risks were calculated", - said the director of the department of legal protection of entrepreneurs NCE RK Oleg Savelenko, speaking at the Council meeting. Moreover, the contract and its provisions meant that the relationships can’t be terminated unilaterally, and in the case of termination "Astanaenergosbyt" had to notify the company "Geotech Corp." 180 days, which didn’t happen.

Director General of "Geotech Corp." Marat Bulikbaev thanked "Atameken" for giving a platform and an opportunity to speak. "We appeal to NCE as to the last instance with a hope for a fair resolution of our dispute. (...) Over the past 9 months LLP “Geotech Corp.” directed appeals to more than 20 government agencies, including the Prosecutor General's Office, the Ministry of Finance, the National Bureau of Anti-Corruption, the Ministry of the Civil Service, the Accounts Committee for Control over Execution of the Republican Budget, the Ministry of National economy, etc. for gross and repeated violations of the law of RK "On public procurement", - he said.

According to Bulikbaev, Inspection of Financial Control of Astana confirmed the violation of the principles of legal regulation of public procurement in terms of equal opportunities for potential suppliers and creation of fair competition. In addition, they certified the fact that at the time of the tender JSC "Kazpost" was not the owner of the equipment for the execution of works for the competition, and the present owner - LLP "Elektronpost" - is at the process of liquidation.

Representatives of the opposing party were invited to the meeting to create a complete picture. Their arguments were heard by the Council.

"Astana ERC" is a state enterprise. Here a large role in the fact that the company “Geotech Corp.” lost the competition, was the fact that we are forced to earn a profit in the current economic situation. "Geotech Corp." is not ready to make such concessions, they want to get profits from printing to themselves", - Marlen Zhakezhanov said the representative of "Astanaenergoservice".

Deputy General Director of LLP "Astanaenergosbyt" Evgeni Pizikov confirmed that the contract with the "Geotech Corp." was made until 2018, and canceled without notice. "In 2015, by the decision of akim of Astana were adopted rules of public services, in which are very clear definitions of ERC, EPD, the functions of these organizations in the market and how they interact with municipal services of Astana. For six months we have discussed these rules in Akimat. In the end, in January 2016 notified “Geotech Corp” on termination of the existing contract with them", - he said.

"It was 180 days in advance?" - asked a clarifying question Gani Kasymov.

"No. I have to admit, this clause of the contract, we didn’t observe", - said Pizikov. "We, according to the current rules, combined our database for customers with "Astana ERC" and now Astana ERC prints all invoices and receipts both for consumers of Astanaenergosbyt and Astana ERC", - he added.

Deputy Chairman of NCE Rustam Zhursunov gave the legal assessment of the situation. "There are two questions. The first about adoption of a normative legal act. It is necessary to look at the formal side of the issue, it's a regulatory impact on the business environment. The second question concerns the “Yellow pages” - here the state gets to the competitive market. In our opinion, it is necessary to raise the question about feasibility of such an LLP. This is quite a competitive market, even if it is profitable. You are not set up to make money", - he said.

Meanwhile, the victim entrepreneur Marat Bulikbaev noted that the current situation affects not only the company “Geotech Corp.”, but in general, the cost of utility bills. "Our contract until 2018 meant the gradual depreciation of the cost of printing the invoices. All utility bills could be paid at "Astanaenergosbyt" office without paying commission. And ERC at the moment processes all payments through the second-tier banks. Thus the rights of the population are infringed, they do not have the right to choose where to pay. ERC is hiding behind the decision of akimat, which contradict to the Entrepreneurial Code. As a result, the population pays extra money for banking services, which directly affects the final price", - he said.

Gani Kasymov, as chairman of the Council for the Protection of the Business, summed up the discussion. "The question is not easy. Nobody likes when the rules change on the go. There is a law. On the basis of the law, the decisions are adopted, but they must not contradict to the law ", - he said.

"We have listened to all parties. It is necessary to consider the issue with the Internal Audit Committee. The General Prosecutor's Office needs to raise the question of the legality of the rejection of bids. Akimat of Astana and the Committee on Regulation of Natural Monopolies and Protection of Competition needs to carry out inspections on the conformity of the activities of LLP "Astana ERC" to the conditions of the legislation to limit the state's participation in entrepreneurial activity. Let's see how it corresponds to the legal issues. We postpone the issue until the next meeting. By this time, there will be the court's decision, and we will put all points over “I”, - concluded Gani Kasymov.