Medvedev sets sights on cleaner public procurement with new Russian laws

As three government departments set about drawing up a new Public Procurement Law, President Medvedev reiterated the need for more openness in the procurement system last week, calling for tougher anti-corruption measures.

“I repeat that we need clear, transparent and effective rules in the state procurement system, especially as concerns planning state procurement needs, setting the initial purchase prices for goods and services, and managing and monitoring the way contracts are performed,” he said at a meeting to discuss the execution of presidential instructions.

The Federal Anti-Monopoly Service, the Finance Ministry and Economic Development Ministry are drawing up new legislation that better regulates the state procurement process.

Kickbacks in state procurement programs have been a serious problem in Russia, with Konstantin Chuichenko, head of the presidential oversight administration, estimating last November that they amount to one trillion rubles ($32.5 billion) a year. At the time, President Medvedev excoriated the “theft” and has since pushed hard to clean up the system.

On March 23 the head of the Federal Anti-Monopoly Service (FAS), Igor Artemyev, said that the first criminal cases against cartel agreements in public procurement will be launched this year.

“Everything that has been done and is being done in the field of state procurement is geared towards combating corruption”, he underlined, adding that while the existing legislation has “done its duty”, it needs updating with new Russian laws.