Most Contracts Violate the Law

The Audit Chamber has found gross violations in the processes through which authorities award state orders of 1 billion rubles ($30 million) or more.

More than 70 percent of the contracts, both by quantity and value, were concluded in a legal “gray area,” the Chamber said Thursday. There was no competitive process to win them, and instead government workers signed contracts with one single supplier.

The data showed that there was an increased risk of violations for especially large orders, identifying “conditions that allow clients and contractors not to perform their roles properly,” the statement said.

Russia doled out 458 large state contracts in the period between July 1, 2011 and Dec. 31, 2012 with a total value of 1.5 trillion rubles of federal budget money.

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