Electronic Auctions Will Save 400 to 800 bln Rubles to Budget
OREANDA-NEWS. November 30, 2009. "For already three years, in spite of a dismal outlook, the Law on State and Municipal Procurement of Goods, Works and Services works and is beneficial. Certainly, with all problems related to the Law, - and there are no problem-free laws - this law already achieved a lot and will do much more in terms of developing competition", said Igor Artemyev, the Head of the Federal Antimonopoly Service (FAS Russia) at the national conference "The Reform of State Procurement: Developing Electronic Trading", reported the press-centre of FAS Russia.
According to the Head of FAS Russia, open auctions are a much better weapon against corruption than close tenders with pre-qualification requirements. "Universal introduction of electronic auction will save 400 to 800 billion Rubles to the budget", says Igor Artemyev.
Igor Artemyev expressed his confidence that robust introduction of electronic trading will make such negative phenomenon as bid-rigging collusion considerably more difficult. "If hundreds entrepreneurs from Kaliningrad to Vladivostok have a chance to participate in an electronic auction, it would be significantly harder, if not impossible, for them to reach collusive arrangements. It will benefit the ordering parties and consumers", thinks Igor Artemyev.
Once again the Head of FAS Russia emphasized to the audience that the law on state procurement is a powerful incentive for development of small business. Its provisions on dividing the lots into smaller ones to award contracts to small companies is effectively an interest-free credit to small business from the state. "This is the most large-scale support offered by the government to small business in the recent period", suggested Igor Artemyev.
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