What actions does the authorized body for internal state audit take in case of complaints about the actions of Customers under concluded public procurement contracts (late payment for delivered goods, service rendered, work performed; refusal to accept the delivered goods, etc.)?

    Committee of the internal public audit of the Ministry of Finance of the Republic of Kazakhstan

    Question

    What actions does the authorized body for internal state audit take in case of complaints about the actions of Customers under concluded public procurement contracts (late payment for delivered goods, service rendered, work performed; refusal to accept the delivered goods, etc.)?

    Answer

    In accordance with subparagraph 21) of article 3 of the Law of the Republic of Kazakhstan "On State Procurement" (hereinafter - the Law), a contract on state procurement is a civil-legal agreement concluded through a web portal between the customer and the supplier, authenticated by electronic digital signatures, except in cases provided for by the rules of public procurement approved by the authorized authority.

    According to article 4, paragraph 1 of the Law, the legislation of the Republic of Kazakhstan on public procurement is based on the Constitution of the Republic of Kazakhstan and consists of the norms of the Civil Code of the Republic of Kazakhstan, this Law and other normative legal acts of the Republic of Kazakhstan.

    In accordance with article 9, paragraph 1, of the Civil Code of the Republic of Kazakhstan, protection of civil rights is carried out by court and arbitration.

    In accordance with paragraph 3.1 of the Model Contract for the Procurement of Goods by State (hereinafter the Model Contract), the supplier undertakes to ensure full and proper performance of its obligations under the Contract.

    However, paragraph 7.1 of the Model Treaty establishes the liability of the parties in case of non-performance or improper performance by the Parties of their obligations, and all disputes and disagreements are resolved in accordance with the laws of the Republic of Kazakhstan.

    In this regard, all disputes that arise between the Customer and the Supplier during the performance of their contractual obligations are governed by the civil law of the Republic of Kazakhstan. Consequently, in the event of disputes, the relationship between the customer and the supplier is subject to legal proceedings and cannot be reviewed by the Committee or monitored.

    In addition, article 1 of the Constitutional Law of the Republic of Kazakhstan "On the Judicial System and the Status of Judges of the Republic of Kazakhstan" provides that appeals, applications and complaints subject to judicial review may not be examined or placed under any supervision by

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