In a number of cases, it is permitted to purchase goods, works and services for the state without observing the Law "On State Purchases". One of such cases is their purchase from legal entities with 100% state share. But do all such organizations fall under this exception?
In what cases are goods, works, and services purchased from legal entities with state participation without applying the provisions of the Law "On State Procurement"?
According to subparagraph 31) of paragraph 1 of Article 4 of the Law of the Republic of Kazakhstan "On Public Procurement", public procurement may be carried out without applying the provisions of the said Law, in the event of the acquisition by a state body of goods, works, services from joint-stock companies and business partnerships, one hundred percent of the voting shares (stakes in the authorized capital) of which belong to the state, the relevant powers, types of activities, and objectives of which are established by regulatory legal acts of the Republic of Kazakhstan.
Thus, government agencies may purchase goods, works, services from joint-stock companies and business partnerships, one hundred percent of voting shares (interests in the authorized capital) without applying the provisions of the Law, if the types of activities, tasks, and corresponding powers of these companies and partnerships are approved by regulatory legal acts of the Republic of Kazakhstan (hereinafter referred to as NPA).
In accordance with paragraph 2 of Article 3 of the Law of the Republic of Kazakhstan No. 213-I dated March 24, 1998 "On Regulatory Legal Acts", the main type of regulatory legal acts include the following: Resolution of the Government of the Republic of Kazakhstan, Orders of Ministers of the Republic of Kazakhstan and other heads of central government bodies, Resolutions of central government bodies, Decisions of maslikhats, Resolutions of akimats, Decisions of akims, etc.
In what cases are public procurements carried out on a general basis?
Conclusion of a public procurement contract without applying the provisions of the law in accordance with subparagraph 31) of paragraph 1 of Article 4 of the said Law is possible with an LLP or JSC with 100% share in the authorized capital of the state, only if it has been assigned powers, type of activity and tasks that must be approved by the regulatory legal acts of the Republic of Kazakhstan. If a legal entity does not have tasks, type of activity and powers approved by the regulatory legal acts, then concluding a public procurement contract without applying the provisions of the Law is not permissible, even if the Customer is a participant or shareholder of this partnership or company.