The Prosecutor’s Office of Bishkek conducted an inspection at the Bishkek Motor Transport Municipal Enterprise of the mayor’s office of Bishkek. During the inspection, the fact of concluding an agreement for the purchase of large-capacity passenger buses with an overestimation of their cost by $1,906,740 (154 million 827.3 thousand KGS) was revealed.
It was established that the responsible persons of the municipal enterprise, abusing their official position and contrary to the interests of the state, deliberately limiting the participation of other suppliers, without holding the established competitive bidding, and also without taking into account the results of earlier tenders, illegally entered into an agreement with ZH.B.H. CO LTD for the supply of large-capacity passenger buses. According to the application, the company was to supply 120 buses worth $91,000 each. The total cost of the buses was $10,920,000.
“Moreover, in violation of the requirements of the tender documentation, it was illegally established in the terms of the contract that customs clearance fees and various taxes are paid by the buyer, and the delivery of buses would be carried out only to the border of Kyrgyzstan,” the Prosecutor’s Office explains.
As a result, the cost of one bus, taking into account customs duties and fees, as well as value added tax (VAT) on imports, amounted to $112,339.5, which exceeds the offer price of the company of another contestant by $15,889.5 or $1,906,740 for the entire lot.
“Also, in violation of the Law of the Kyrgyz Republic “On accounting”, without the consent of the chief accountant and other responsible persons of the enterprise, without providing a bank guarantee by the supplier, the head of the municipal enterprise personally and illegally transferred in advance to ZH.B.H. CO LTD budget funds in the amount of 10% of the contract price or $1,092,000,” the Prosecutor’s Office emphasizes.
Based on the results of the inspection, the Prosecutor’s Office of Bishkek initiated a criminal case under Article 337 “Abuse of official position” and Article 339 “Conclusion of a knowingly unprofitable contract” of the Criminal Code of the Kyrgyz Republic. The investigation is underway.
