Press Release, 27.12.2018

Yabloko’s has detected that the Russian government allocated 4.6 billion roubles for the celebration of the New Year and Christmas; whereas gifts cost 2 billion roubles out of this amount. In almost 50 per cent of the purchases there was no competition. Anti-Corruption Policy Centre experts, gifts to children cost somewhat less than the Defence Ministry’s tanks purchased this year.

The Centre conducted an analysis of 3,879 auctions for the installation of Christmas decorations, delivery of gifts and festivities.

Tenders demonstrated risks of corruption. Thus, 1,778 purchases (45.8 per cent) passed without any competition and saving of the funds — either only one supplier participated in the tender, or the customer chose this supplier in advance. Consequently, the budget lost about 200 million roubles. For purchases with competition, the average budget savings amounted to 13 per cent.

Most of the spending – 2.58 billion roubles – accounted for purchases in accordance with the fedral law No 223 “On procurement for certain types of legal entities”. This is a softer law for the customer: it allows not supply any feasibility study for the purchase and select contractors as the customer wishes. State-owned companies and enterprises make their purchases in accordance with this law.

Procurement for state institutions under the law on the contract system cost 2.06 billion roubles. The purchase of Christmas decorations cost over 1.21 billion roubles. Another 231 million roubles was spent on the New Year festivities.

In total, the government agencies spent 2.6 billion roubles on holiday decorations and festivities; in addition gifts cost 2 billion roubles: Christmas cards, candy and tickets for New Year’s concerts.

“Basically, gifts are meant for children. In terms of the number of children in Russia, this is 64 roubles per child, or a little over the price of a Kinder Surprise. Certainly, not every child got a gift, but only the children chosen by the officials. What means 2 billion roubles? This is compared to budget spending for 13 days of the war in Syria, or eight tanks Armata out of nine such tanks purchased by the army this year. It is necessary to change the budget and reduce corruption in procurement. Then there will be more money for gifts for children than for tanks,”says Alexey Karnaukhov, Director of the Anti-Corruption Policy Centre.

Yabloko’s Anti-Corruption Policy Centre will send its analysis to the Audit Chamber of Russia.