Archive for January 11th, 2011

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Supply chain management, sweeping clean or creating monopoly suppliers?

January 11, 2011

Well dear readers, it seems that within the government ministries over the years are large number of “fee based” administrative suppliers have been created, the majority of which, according to a recent audit comply with Ukrainian law.

Interfax-Ukraine
Administrative services on a fee-paying basis from March 1, 2011 would be provided only by companies and organizations, which Ukrainian law or international agreements empowered to provide the said services, while the rest of the companies would be liquidated, the press service of the state committee for regulatory policy and entrepreneurship has reported.

According to the report, the cabinet resolution was approved at a cabinet meeting on January 5.

“The rest of the companies and organizations created at ministries and executive power bodies, which provided administrative services under other legal acts, would be liquidated. Thus, central power bodies would not be able to create budget companies, which would provide administrative services on a fee-paying basis,” reads the report.

An interagency working group created under an initiative of the state committee for regulatory policy and entrepreneurship, which had analysed the administrative service system, revealed 11,175 budget companies created at ministries and power bodies in the country. According to the single records of companies and businessmen, 7,608 of administrative service providers are managed by ministries and 3,567 of them are managed by other central executive power bodies. The committee said that only few companies provide administrative services under Ukrainian laws.

According to the cabinet resolution, until February 20, 2011 ministries and bodies are to submit draft acts on the approval of lists of administrative services provided on a fee-paying basis, pointing out the executor of the services and the fee to be paid. The lists of administrative services are to be posted on official Web sites of central executive power bodies.

So, is this a move to control the supply chain and remove such companies who are not either compliant with the law and/or have been used for nefarious means to take little pieces of the budget to line pockets over the years, or will this move create a monopoly on the administrative fee paying services to government?

However it will end up, there will at least be some transparency if all those who make it through the “sift” must be identified on Ministry websites as that currently doe not happen.

Expect some major horse trading in the RADA as no doubt all of these administrative companies paid fees by Ukraine are owned by RADA members or their friends.  It will be a case of who will shut theirs for a shareholding/directorship in another that will continue……and who will be left out in the cold.

An investigative journalists dream when the definitive lists are eventually published……if only there were any investigative journalists.

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