Public procurement. How Minsk and Minsk district are being improved

10 mins

На русском языке: Госзакупки. Как благоустраивают Минск и Минский район
На беларускай мове: Дзяржзакупкі. Як Мінск і Мінскі раён робяць лепш

Beautification of cities is important. But who does it? The editors of motolko.help looked at how electronic auctions are held in the field of improvement of Minsk and Minsk district and found several interesting moments.

What violations were identified?

  • Affiliated organizations participate in the bidding;
  • The cost of services at the end of the auction does not correspond to the actual cost.

In the field of improvement of the city of Minsk and Minsk district, one way or another, the following organizations take part:

Today we will look through a number of auctions, the organizers or participants of which are the above-mentioned enterprises.

UE Gorodstroy auctions

From January 16 to February 25, 2020, 8 auctions were held by the order of UE Gordostroy. Of these, only two took place:

auction  № auc0000041947
auction  № auc0000040847

Auction  № auc0000041947

The subject of this auction was the implementation of works on landscaping of territories and public facilities at site under the economic management of UE Minskzelenstroy. The estimated cost of the purchase is 13042408.00 BYN.

Public procurement. How Minsk and Minsk district are being improved

The winner of the auction was declared the production communal unitary enterprise Minskzelenstroy with a price offer of 13029365.59 BYN, taking into account the pref-amendment.

Both participants admitted to the auction are interconnected — this is the principal and its division, as evidenced by the section «Structure» of the enterprise on the website of Minskzelenstroy.

Auction  № auc0000040847

The subject of this auction was a range of services for the maintenance of streets, sidewalks, stopping points, rain sewerage and other elements of improvement that are under the economic management of the State Mining And Processing Service Gorremavtodor of the Minsk City Executive Committee, for a total estimated cost of 17504449.00 BYN.

Public procurement. How Minsk and Minsk district are being improved

The state production association Gorremavtodor of Minsk City Executive Committee was declared the winner of the auction with a price offer of 17486944.55 BYN, taking into account the pref-amendment.

In this auction, the situation is the same: Gorremavtodor of the Minsk City Executive Committee and Remavtodor of the Sovetsky District of Minsk are the principal and structural unit according to the site.

It is also worth paying attention to the fact that in the subjects of procurement there’s the wording «… are under the economic management of UE Minskzelenstroy» and «… under the economic management of the State Mining And Processing Plant Gorremavtodor of the Minsk City Executive Committee».  This may indicate that the winners of the auction were known in advance.

Auctions of Minsk District Executive Committee

Now let’s look through the auctions organized by the Minsk District Executive Committee.

Auction  № auc0000061990 

Electronic auction №auc0000061990 was held for the maintenance and operation of the street and road network of the Minsk district for an estimated cost of 1 500 000.00 BYN and with an initial cost of 1 304 347.83 BYN according to the protocol of 06.03.2020.

Public procurement. How Minsk and Minsk district are being improved

Two organizations were admitted to the auction — Housing of Minsk region and Minraigorremavtodor, the victory was won by Minraigorremavtodor with a price offer of 1 497 000 BYN, taking into account the pref-amendment. Attention is drawn to the fact that the final price offer, taking into account the pref-amendment, was almost equal to the declared indicative cost and was an «integer».

Further study on the documents of this auction showed that the contract between the organizer and the winner of the auction was signed in the amount of 1 497 000.00 BYN. It can be assumed that the difference between 1 301 739.13 BYN and 1 497 000.00 BYN (that is, almost two hundred thousand rubles) is illegal enrichment.

Auction № auc0000050799

The same enterprises (Housing of Minsk region and Minraigorremavtodor) were admitted to the electronic auction №auc0000050799, the victory in the auction was won by the Housing of the Minsk region.

Auction № auc0000062055

The same organizations were again admitted to the electronic auction №auc0000062055 for the implementation of a set of works on the improvement of the sanitary condition of public lands in Zaslavl, Minsk district (lot №2) and Machulishchi of the Minsk district (lot №3). The winner of lot №2 was Housing of Minsk region, and lot №3 — Minraigorremavtodor.

Such procurement violations are described in the Guide to Combating Corruption & Fraud in Development Projects and are called «Bid Rotation». The bottom line is that bidders often change winning bids by geographic region (e.g., one contractor gets all the work in one county, another company gets all the work in the next), by type of work, or by time.

In addition to the possible bid rotation, other oddities were found in the auction №auc0000062055. Thus, for lot №2, the estimated cost was 181,784.00 BYN (for lot №3 — 47,801.25 BYN), and after the meeting of the commission, the initial cost was set at 158,073.04 BYN (for lot №3 — 41,566.30 BYN) according to the protocol of 11.03.2020.

When analyzing the contracts signed by the organizer and contractor, it turned out that for lot №2 the contract was signed in the amount of 181,420.43 BYN, i.e. taking into account the pref-amendment, which is a violation. In addition, an additional contract was signed for 231,336.43 BYN. For lot №3, the amount of the signed contract was 47,753.44 BYN, which also does not correspond to the real cost of this service, according to the results of the auction.

It is important to note that Housing of Minsk region and Minraigorremavtodor are subdivisions of the Municipal Unitary Enterprise Housing and Communal Services of the Minsk District according to the website.

What violations were identified?

  • Affiliated organizations participate in the bidding;
  • The cost of services at the end of the auction does not correspond to the actual cost.
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