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Economy
2023 October 11 (Wednesday) 13:33:03
Baku/11.10.23/Turan: During the monitoring of the “Purchases” section of SOCAR’s internet portal of the “Turan” Information Agency, which was updated to the beginning of 2023, it was found that, like the head office of the largest state holding, its structural units and subsidiaries at all stages avoid compliance with procurement transparency requirements.
SOCAR’s procurement is still carried out in paper format, while state institutions financed from the state budget have switched to electronic procurement of goods (works and services) since March 2019. SOCAR’s parent company, as well as none of its dozens of divisions, have posted their procurement plans for 2023 on the oil company’s website.
This year, SOCAR’s structures have implemented hundreds of procurement procedures for the purchase of goods, works and services. However, their results were officially reported by only two structural units: the “Oil Gas Research Project” Institute and the “Complex Drilling Works” Trust.
The Azerbaijan branch of Petrol Sanayi ve Ticaret LTD (Turkey), “Chinar-Servis IKF” LLC, “Evim Teksil” LLC, “Doctor of Laboratories” LLC, “HQ LAB” and “Optimum Metrology” in the five procurement procedures of “Neftgaz” Services” LLC won. The total amount of purchase contracts was about 300 thousand manats. “Complex Drilling Works” trust also decided on the results of five procurement procedures. A decision was made to refuse competitive procurement for all of them.
The state control body does not comment on the situation regarding SOCAR’s purchases.
SOCAR, for its part, notes that its normative documents on the organization and management of procurement (concept, policy, standards, instructions, etc.), internal standards, standards applied by global oil and gas companies in the field of procurement, as well as consulting, taking into account the experience of the World Bank in the regulation of procurement was prepared with the involvement of companies. “These documents cover all stages of procurement activities and outline responsible roles and responsibilities for each process and documentation procedures. “PricewaterhouseCoopers” and KPMG’s representative office in Azerbaijan analyzed SOCAR’s procurement procedures and declared that the normative documents comply with all important aspects of the Law “On Public Procurement”, said SOCAR.
Back in February of this year, “Turan” Information Agency applied to SOCAR with a request for information regarding the state company’s non-compliance with the legislation on public procurement, but it has not yet received a comprehensive answer.
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