In some cases, it is allowed to purchase goods, works and services for the state without complying with the Law "On Public Procurement". One such case is the acquisition of them from legal entities with a 100 percent state share. But do all such organizations fall under this exception?
IN WHAT CASES ARE GOODS, WORKS, SERVICES PURCHASED FROM LEGAL ENTITIES WITH STATE PARTICIPATION WITHOUT APPLYING THE PROVISIONS OF THE LAW "ON PUBLIC PROCUREMENT"?
According to subparagraph 31) of paragraph 1 of Article 4 of the Law of the Republic of Kazakhstan "On Public Procurement", public procurement can be carried out without applying the norms of the said Law, in the event that a state body purchases goods, works, services from joint-stock companies and business partnerships, one hundred percent of voting shares (participatory interests in the authorized capital) of which belongs to the state, the relevant powers, types of activities, the tasks of which are established by the regulatory legal acts of the Republic of Kazakhstan.
Thus, state bodies can purchase goods, works, services from joint-stock companies and business partnerships, one hundred percent of voting shares (stakes in the authorized capital) without applying the provisions of the Law, if the types of activities, tasks, relevant powers of these companies and partnerships are approved regulatory legal acts of the Republic of Kazakhstan (hereinafter referred to as NLA).
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 includes such as: Decree of the Government of the Republic of Kazakhstan, Orders of the Ministers of the Republic of Kazakhstan and other heads of central state bodies, Resolutions of central state bodies, Decisions of maslikhats, Resolutions of akimats, Decisions of akims, etc.
IN WHAT CASES ARE PUBLIC PROCUREMENTS MADE ON A GENERAL BASIS?
The conclusion of a public procurement contract without applying the norms 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 a 100% stake in the authorized capital of the state, only if it has been defined powers, type of activity and tasks that must be approved by the NLA Republic of Kazakhstan. If a legal entity does not have tasks, activities and powers approved by the NPA, then the conclusion of a public procurement contract without applying the norms of the Law is not allowed, even if the Customer is a member or shareholders of this partnership or company.