Judge Dinara Karimova of the Specialized Interdistrict Economic Court of the East Kazakhstan Region spoke about judicial practice regarding the recognition of suppliers as unfair participants in public procurement as part of a joint project with the Chamber of Entrepreneurs of the East Kazakhstan Region titled "Your Right."

According to the Specialized Interdistrict Economic Court, in the past year alone, 1,088 claims were filed in the field of public procurement, while 1,202 cases were considered – accounting for carryover proceedings. Of these, 723 claims were granted, and 174 were dismissed.

As Judge Dinara Karimova noted, the law clearly defines the grounds for recognizing a public procurement participant as unfair, including the provision of false information, as well as non-performance or improper performance of contractual obligations. In such cases, the customer not only has the right but is obliged to go to court, no later than 30 calendar days from the date the violation became known.

One example is a dispute between a medical institution and a fuel supplier: "Under the contract, the company was to supply 67 thousand liters of gasoline. However, obligations were fulfilled only partially – approximately 43 thousand liters. The remaining volume was never delivered, despite the customer's notices. The consequences proved serious: the fuel shortage hindered the operations of emergency medical services. The court recognized the supplier as an unfair public procurement participant and imposed a penalty. The appeal left this decision unchanged."

"But not every claim results in inclusion in the register of unfair participants. In another case, a government agency attempted to challenge the company's work experience, alleging that the submitted documents were unreliable. However, it emerged in court that the work had actually been performed, the facilities had been commissioned, and the documents were properly executed. Ultimately, the court denied the claim," the Chamber of Entrepreneurs of the East Kazakhstan Region reported.

According to Dinara Karimova, evidence is key in such cases. Courts assess whether a violation actually occurred, whether the deadline for filing a claim was observed, and whether the violation led to negative consequences.

It is also important to comply with procedural deadlines, as missing them can become grounds for dismissing a claim even when violations exist. As noted, being placed on the register of unfair participants is not a mere formality; for entrepreneurs, it means restrictions on participation in public procurement, loss of business reputation, and financial losses.

The Chamber of Entrepreneurs of the East Kazakhstan Region notes that a significant portion of such disputes arise due to insufficient legal literacy and underestimation of risks by entrepreneurs themselves.

"We regularly encounter situations where businesses underestimate the consequences of even seemingly minor breaches of contract terms. Being included in the register of unfair participants effectively closes access to public procurement and can seriously undermine a company's stability," emphasized Aizhan Zhangirkhanova, Deputy Director of the Chamber of Entrepreneurs of the East Kazakhstan Region, adding that prevention of such disputes plays an important role.

"Today, our task is not only to protect entrepreneurs but also to prevent such cases. We explain the provisions of the law, accompany businesses, and advise them to pay close attention to the fulfillment of contractual obligations. Good faith is not just a legal requirement; it is a competitive advantage," she stressed.

Judicial practice shows that the system strives for balance. On the one hand – protecting the interests of the state and customers; on the other – preventing unreasonable pressure on businesses.

Prepared by Olga SIZOVA,
"YUG" Correspondent for the East Kazakhstan Region
Photo: Chamber of Entrepreneurs of the East Kazakhstan Region