Additional measures to eliminate unjustified intermediation have been taken in Belarus

March 15, Minsk /BELTA/. By the President's order, additional measures have been taken in the government, regional executive committees, and the Minsk City Executive Committee to eliminate and prevent unjustified and unfair intermediation. This was reported to BELTA by the Office of the Council of Ministers. The work to eliminate intermediation is carried out by the Government of Belarus in conjunction with the National Bank and local authorities on a permanent basis. Issues of acquiring imported and domestic goods (works, services), and selling products by organizations whose controlling stake (share in the authorized fund) belongs to the Republic of Belarus (its administrative-territorial units) are currently systematically regulated. All this allows for both the elimination of unjustified and unfair intermediation and the possibility of its detection, the Office of the Council of Ministers noted. The established system of legislative measures to eliminate such intermediation is supplemented by control and administrative measures for its observance, including operational response measures. Law enforcement and control bodies are carrying out targeted work to identify and suppress illegal acts in the economic sphere, including those related to unjustified and unfair intermediation, as well as the activities of sham enterprises. The vast majority of state organizations (with state participation) comply with the established procedure for acquiring goods (works, services) and selling products in the republic. However, inspections reveal isolated cases of intentional or unintentional violation, qualified as illegal acts by specific individuals. During comprehensive inspections of certain organizations in the IV quarter of 2009, the Committee of State Control established facts of unjustified and unfair intermediation in the procurement of goods, raw materials, and equipment, which were reported to the Head of State in January 2010. Internal investigations have been conducted regarding the identified facts. Guilty parties have been held accountable. Ministries and concerns have instructed their subordinate organizations to prevent violations of the established procedure for purchasing goods, raw materials, and materials. For example, during control and inspection activities, the CSC found that the lack of proper owner supervision by the concern "Bellegprom" over the activities of OJSC "Minsk Leather Production Association" led to the unjustified involvement of intermediary structures in supplying this OJSC with raw materials and supplies. In particular, 20% of hides for leather production were purchased by the association through intermediaries with a markup of up to 20%. Another example. In the Mogilev region, despite the presence of domestic manufacturers of electrical installation products – UP "Tiflos" of the NGO "BelTIZ", which produces sockets, switches, and junction boxes – OJSC "Stroitelny Trust No. 12" purchased imported electrical installation products worth Br9.4 million. These products for the construction of residential buildings in Mogilev were replaced with Belarusian analogues by order of the Ministry of Architecture and Construction. The contract with the leading engineer of the supply department of OJSC "Stroitelny Trust No. 12", who allowed this violation, was not extended. According to the Committee of State Control, Klimovichi State Agricultural College purchased construction materials worth Br48.8 million for repair work using funds from the republican budget, including Br34.2 million from intermediaries (70% of all purchases). At the same time, the trade markup on materials purchased from intermediaries ranged from 15% to 20%. Thus, the institution overspent, and intermediaries unjustifiably received about Br6.8 million. An investigation is ongoing into the involvement of intermediaries in construction work by UP "Remavtodor Oktyabrsky District of Minsk" of the Minsk City Executive Committee. According to the Committee of State Control, this enterprise used the services of a subcontractor ODO "Triplex" for the construction of a facility, which sold 1 thousand tons of asphalt concrete mix for Br117 million without supporting documents through a sham enterprise. As a result, the cost of work, including unconfirmed material supplies paid for with budget funds, was overstated by Br180 million. The legal regulation of issues related to the acquisition of goods (works, services) and the sale of products, which ensures the elimination of unjustified and unfair intermediation, is not limited to the adoption of departmental and local decisions. In accordance with the legislative plan for 2010, the government has developed and submitted to the House of Representatives of the National Assembly a draft Law of the Republic of Belarus "On Public Procurement". This draft provides for the formation of lists of qualified suppliers by an authorized state body (on an application basis, taking into account qualification selection requirements). It also provides for the formation of lists of suppliers who will be deprived of the right to participate in public procurement procedures for a certain period (e.g., due to winning bidders evading contract conclusion), as well as a ban on affiliated persons participating in procurement. To prevent illegal actions against honest participants in entrepreneurial activity, the issue of providing them with access to the information base of sham enterprises formed by the Ministry of Taxes and Levies is currently being considered. To limit the import of products similar to those produced in the republic and to eliminate unjustified and unfair intermediation, it is planned to create a unified information system of manufacturers and the nomenclature of goods produced in the republic. As noted by the Office of the Council of Ministers, the government will ensure the fulfillment of the Head of State's order to eliminate unjustified and unfair intermediation, which negatively affects the republic's economy. Effective control will also be ensured over compliance with the procedure for acquiring goods (works, services) and selling products. Those guilty of violations will be held accountable, regardless of their positions. Taking into account the nature and purpose of the goods acquisition, this system can be improved, but its basic requirements will remain the price, financing conditions, and quality of the acquired goods, the Office of the Council of Ministers emphasized.