The Ministry of Labour has issued recommendations for identifying and mitigating corruption risks in procurement
Pepeliaev Group advises that the Russian Ministry of Labour and Social Protection has published, on its information portal gossluzhba.gov.ru, Guidelines for the identification and mitigation of corruption risks in the procurement of goods, work, or services to provide for state or municipal needs.
These guidelines have been developed for entities involved in procurement activities in accordance with Federal Law No. 44-FZ “On the contractual system in the area of the procurement of goods, work and services to provide for state and municipal needs” dated 5 April 2013 and Federal Law No. 223-FZ “On the procurement of goods, work and services by specific types of legal entities” dated 18 July 2011, and are aimed at providing advisory and methodical support for entities holding events designed to identify and mitigate corruption risks.
The guidelines have been prepared in pursuance of clause 16(b) of the National Plan for counteracting corruption for the period 2018-2020 (approved by the Russian President’s Decree No. 378 dated 29 June 2018).
The Guidelines outline the principles on which a system for assessing corruption risks in procurement should be built in legal entities. For instance, the activities aimed at assessing corruption risks should not be at variance with the legal regulations and other statutory instruments of the Russian Federation (the lawfulness principle); the corruption risks should be assessed taking into consideration the actual possibilities of the relevant entity, including the availability of staff, finances, time, and other resources (the rational distribution of resources principle); there should be a direct interconnection between the results of the assessment of corruption risks and the measures taken to prevent corruption; the measures being taken should be well-timed and regular, etc.
The Guidelines establish a detailed action algorithm for entities to prevent corruption in procurement. It is envisaged that the procedure for assessing corruption risks and taking measures to mitigate them should consist of the following successive stages:
The use by entities of these Guidelines is expected to result in the following:
It is recommended that the register of corruption risks and the plan to mitigate corruption risks should be published on the relevant entity’s official website in the Internet.
We are ready to provide the necessary legal support in the development and practical implementation of the necessary anti-corruption policies, internal regulations, and policies with respect to applying incentive and liability measures to employees when they perform or violate their duties in connection with preventing corruption. We can also suggest the implementation of an efficient automated system for identifying and assessing legal and compliance risks in the activities of a company, including a system for checking and identifying offences during procurement activities (such as tenders or bids), checking the trustworthiness of the counterparties, and identifying conflicts of interest.
These guidelines have been developed for entities involved in procurement activities in accordance with Federal Law No. 44-FZ “On the contractual system in the area of the procurement of goods, work and services to provide for state and municipal needs” dated 5 April 2013 and Federal Law No. 223-FZ “On the procurement of goods, work and services by specific types of legal entities” dated 18 July 2011, and are aimed at providing advisory and methodical support for entities holding events designed to identify and mitigate corruption risks.
The guidelines have been prepared in pursuance of clause 16(b) of the National Plan for counteracting corruption for the period 2018-2020 (approved by the Russian President’s Decree No. 378 dated 29 June 2018).
 | Please be reminded that all companies, irrespective of their forms of ownership, must develop and take anti-corruption measures . The reduction of the level of corruption is a priority goal of anti-corruption policy.
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The Guidelines outline the principles on which a system for assessing corruption risks in procurement should be built in legal entities. For instance, the activities aimed at assessing corruption risks should not be at variance with the legal regulations and other statutory instruments of the Russian Federation (the lawfulness principle); the corruption risks should be assessed taking into consideration the actual possibilities of the relevant entity, including the availability of staff, finances, time, and other resources (the rational distribution of resources principle); there should be a direct interconnection between the results of the assessment of corruption risks and the measures taken to prevent corruption; the measures being taken should be well-timed and regular, etc.
The Guidelines establish a detailed action algorithm for entities to prevent corruption in procurement. It is envisaged that the procedure for assessing corruption risks and taking measures to mitigate them should consist of the following successive stages:
- preparatory stage;
- describing the procedure of procurement in the relevant authority (entity);
- identifying corruption risks;
- analysing corruption risks;
- ranking corruption risks;
- devising measures aimed at mitigating corruption risks;
- approving the results of the assessment of the corruption risks; and
- monitoring the implementation of measures aimed at mitigating the corruption risks identified.
The use by entities of these Guidelines is expected to result in the following:
- a unified approach will be ensured to the organisation of activities aimed at identifying corruption risks that arise at various stages of procurement;
- every entity will devise a register (roadmap) of corruption risks arising in procurement and of measures aimed at mitigating such risks; in addition, every entity will set up corruption indicators.
It is recommended that the register of corruption risks and the plan to mitigate corruption risks should be published on the relevant entity’s official website in the Internet.
| A comprehensive implementation of the above measures should have a positive impact with regard to decreasing the number of violations in procurement processes and would mitigate the risks for an entity and its officers to be held liable for corrupt practices. |
Help from your adviser
Pepeliaev Group’s lawyers have all-round experience of handling issues relating to the implementation of anti-corruption compliance measures in major companies, and conducting anti-corruption investigations.We are ready to provide the necessary legal support in the development and practical implementation of the necessary anti-corruption policies, internal regulations, and policies with respect to applying incentive and liability measures to employees when they perform or violate their duties in connection with preventing corruption. We can also suggest the implementation of an efficient automated system for identifying and assessing legal and compliance risks in the activities of a company, including a system for checking and identifying offences during procurement activities (such as tenders or bids), checking the trustworthiness of the counterparties, and identifying conflicts of interest.