OREANDA-NEWS. November 19, 2010. The Federal Antimonopoly Service (FAS Russia) deemed illegal the results of the auction for the right to extract mason’s sand and sand-and-gravel mix, organized by the Briansk Regional Committee for Nature Management and Protection of the Environment, and Licensing of Special Activities (further on referred to as the Committee), reported the press-centre of FAS Russia.

FAS Russia received a complaint of “Nota Bene” Ltd. that its bid had not been accepted for the auction for extraction of mason’s sand and sand-and-gravel mix, as a result of which the contract was awarded to the only bidder – “Blagoustroistvo” Municipal Unitary Enterprise – at the original price.

On 23rd April 2010 the Committee organized the auction in question. Evaluating the bids, the Auction Commission established that the extracts from the Unified State Register of Legal Entities, submitted by “Nota Bene” Ltd. and “Blagoustroistvo” Municipal Unitary Enterprise failed to meet the auction requirements. By the time the extracts were submitted to the Committee, the date of issue on the extracts exceeded the period specified in the auction requirement. The extract from the Unified State Register of Legal Entities submitted by “Nota Bene” Ltd. was past due by ten days, while the extract of “Blagoustroistvo” Municipal Unitary Enterprise was past due by four years.

However, the Auction Commission voted to reject only the bid of “Nota Bene” Ltd., and “Blagoustroistvo” Municipal Unitary Enterprise was recognized as the single bidder. At the same time, “Blagoustroistvo” Municipal Unitary Enterprise was given an opportunity to obtain a new extract from the Unified State Register of Legal Entities and submit the document to the Committee after the auction.

“Questionable results of competitive bidding for use of subsoil areas in various regions of the Russian Federation are a direct consequence of serious drawbacks of the law on subsoil. FAS Russia will press for transition to distributing the rights for use of subsoil areas in the Russian Federation through electronic auctions, which secure participation of the maximum number of auction bidders and at the same time provide high level of protection from any unfair actions”, said Rachik Petrosyan, the Head of the FAS Russia’s Department for Control over Housing -and-Utilities, Construction and Natural Resources.

Reference:

Under Clause 1.2. of the Auction and Tender Procedures for Use of Subsoil Areas with Common Mineral Resources in the Briansk Region, approved by No.572 Decree of the Briansk Regional Authority of 15th June 2009, the Briansk Regional Committee for Nature Management and Protection of the Environment and Licensing of Special Activities is responsible for making decisions on competitive bidding for the right to use subsoil areas.

As the Auction Commission is not in procedural legal standing and is not an actor in relations regulated by the Law “On Protection of Competition”, liability for its decision lies with the Briansk Regional Committee for Nature Management and Protection of the Environment and Licensing of Special Activities.