The register of unscrupulous suppliers

THE REGISTER OF UNSCRUPULOUS SUPPLIERS

Nowadays in Kazakhstan there are the companies that are not able to participate in public procurement as suppliers. These are the companies that are included to the register of unscrupulous suppliers.

In practice, many companies enter the register of unscrupulous suppliers due to the ignorance of the laws or because the companies initially made an agreement on unfavorable conditions for themselves and cannot complete the work. Most important such companies cannot defend themselves in court.

In court practice there are cases when the companies could defend themselves and avoided getting into the register of unscrupulous suppliers.

THE JUDICIAL PRACTICE

Companies can avoid falling into the register of unscrupulous suppliers in the following cases:

• The contractor terminated the contract, but did not record the violations;

• The supplier performed the obligations properly, but the contractor is “nitpicking” and does not want to pay;

• The supplier was not able to perform the obligation on the contractor’s fault;

• The contractor terminated the contract due to the financial issues;

• The contractor filed lawsuit because of the missed deadlines that are defined in the law;

• The supplier delivered the goods but with a delay and yet the contractor accepted it.

RECOMMENDATIONS

In order to prevent the Company from entering the register of unscrupulous suppliers, we recommend:

1. To check the trading office where notifications are sent;

2. To analyze every received notification so that lawyers could define how important the case is;

3. To analyze any problems with the contractor;

4. To consult professional lawyers as to know what are the Company’s chances to challenge the illegal actions of the contractor in court. If there are any chances in Company’s favor.