Russia bans purchase of foreign non-niche software in Russian state agencies

[Steve Kinney]

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On 11/22/2015 12:44 PM, Anton Nesterov wrote:

[... ]
> Well currently Russia has many problems with transparent
> spending. Even if tenders are public, it's still problematic to
> cancel clearly corrupt tenders. They often build it in such way
> that only one affiliated company can participate, like "company
> should had at least N workers, with N workers with Z
> certificates" and so on.

That's the way both military and commercial contracting usually
works in the U.S. as well:  The vendor makes a deal with the
purchasing agent, x units for y dollars, informally and off the
record.  Then the purchasing agent revises the specification so
that only the vendor in question can qualify.  The competitive
bidding process then proceeds normally, on the record, and as far
as the audit trail is concerned it's all perfectly legal.

The kickbacks are laundered in various ways; the most popular
method for military purchasing agents is for the vendors to hire
them as consultants when they leave the service, with
extraordinary pay and bonuses for little to no work performed.

Lots of other scams are also used, but the system described above
is probably the most widely used.

:o)


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