All types of violations

Supplier Affiliation with the Contracting Entity’s Management 

This involves a conflict of interest. A supplier might be explicitly affiliated (through ownership or leadership) with the individuals who are responsible for making procurement decisions on behalf of the client. For instance, the supplier might be owned by a close relative of the the Contracting Entity. Affiliation can also be indirect. For example, the supplier’s manager might be a former classmate, colleague, or otherwise professionally acquainted with the the Contracting Entity’s manager.

To identify such risks, it’s necessary to collect data on the management of the the Contracting Entity’s company and conduct an expert analysis to identify any possible affiliations with supplier staff.

Responsible institutions

Internal Government Audit Committee of the Ministry of Finance of the Republic of Kazakhstan (IGAC)

Oversight of Compliance with the Republic of Kazakhstan’s Procurement Legislation, including Desk Audits

010000, Nur-Sultan city, Zhenis Avenue, 11.

Regional Internal Audit Departments of the Republic of Kazakhstan (RIADs) 

Territorial Divisions of the Internal Government Audit Committee of the Ministry of Finance of the Republic of Kazakhstan

Conducting Scheduled On-Site Audits

010000, Nur-Sultan city, Zhenis Ave, 11.

Office of the Attorney General

010000, Nur-Sultan, Mangilik El Avenue, 14.

Anti-Corruption Agency of the Republic of Kazakhstan

Prevention, detection, suppression, disclosure, and investigation of economic and financial offenses.

010000, Nur-Sultan city, S. Seifullin street, 37.

Dispute Templates

General Risk Template

Purchasing examples

Supplier and the Contracting Entity's chief accountant are related

"The investigation revealed that the director and chief accountant of the children's home circumvented the standard public procurement procedures to contract with an affiliated enterprise for food supplies. In this case, the owner of the company was the spouse of the chief accountant."

Suppliers are affiliated through joint participation in tenders

"It was found that LLC 'ABK-Avtodor NS' and LLC 'Kazakhdorstroy' participated in public procurements, with one creating artificial competition for the other to ensure the procurement occurred at the highest possible price."

Knowledge base

Cost of building a school place in Kazakhstan for 2021-2022
Public Monitoring: Case 3. Identifying “Favored” Suppliers of a Specific Procuring Entity and Other Risks