We will be able to exclude suppliers with a bad reputation in the market from tenders - Zhumadilov commented on options for strengthening sanctions for unscrupulous companies

We will be able to exclude suppliers with a bad reputation in the market from tenders - Zhumadilov commented on options for strengthening sanctions for unscrupulous companies

Kyiv  •  UNN

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The "State Logistics Operator" will be able to exclude suppliers with a bad reputation or a history of default from military supply tenders if the proposed legislative changes are approved.

Strengthening of operational and economic sanctions against companies that have not fulfilled their obligations to other customers will allow the State Logistics Operator to cut them off from participating in tenders for the supply of food to the Armed Forces of Ukraine. This opinion was voiced by DOT Director General Arsen Zhumadilov during a briefing, answering a question from a journalist of UNN.

According to him, currently, the current legislation in terms of operational and economic sanctions regulates this issue in such a way that the requirement of disqualification from the tender can be applied to those suppliers who have not fulfilled their obligations to this particular customer who is part of the procedure. 

"Initially, the State Logistics Operator stipulated in the tender conditions that firms that failed to fulfill their obligations under contracts with the Defense Ministry could be excluded from tenders. But this requirement was canceled by a court decision.

"What we proposed in our first procedure as a requirement to prevent those who did not fulfill their obligations not to us, but to the Ministry of Defense - this requirement was indeed successful in the appeal, and it was one of the requirements that took off then. I am aware that there are some discussions that it might make sense to regulate at the legislative level, at least for the period of martial law, this right of customers to apply operational and economic sanctions against those suppliers who have not fulfilled their obligations not to this particular customer, but to another customer in the public sphere," Zhumadilov explained.

He added that the implementation of this initiative will allow the DOT to cut off firms with a dubious reputation from participating in tenders.

"I don't know whether this initiative will be implemented or whether it will go to the session hall. If it is implemented, of course, it will simplify our work somewhat, and then we will be able to really disqualify those suppliers who have, as they say, a bad reputation in the market. Because if it's just a bad reputation in the market now, it can't be a reason for disqualification. And when it is a failure to fulfill obligations and this requirement is already legally regulated and such that we can use it, it is another conversation," summarized the Director General of DOT.

Recall

MP from the Servant of the People party, member of the Verkhovna Rada Committee on National Security, Defense and Intelligence Fedir Venislavsky told UNN in an exclusive commentary that he plans to come up with such a legislative initiative.

"I will think about legislative initiatives to expand the right to apply operational and economic sanctions to suppliers who have not fulfilled their obligations to other public customers. Currently, the customer has such a right only in relation to those who have not fulfilled their obligations to this particular customer," Venislavsky said.