20:05 / 23.06.2021
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Project: Government officials will be strictly prohibited from doing business

In Uzbekistan, certain categories of government officials will be strictly prohibited from doing business, contracts with conflicts of interest will be terminated, and those who allow this will be prosecuted. Relevant proposals are reflected in the draft presidential decree.

In Uzbekistan, important norms on public procurement and conflicts of interest are expected to be included in the legislation.

This is stipulated in the draft presidential decree and resolution issued on June 23. 

According to the document, by January 1, 2022, the law “On the regulation of conflicts of interest” will be developed and submitted to the Cabinet of Ministers.

Another bill to be submitted to the government in the same period provides for the establishment of liability for conflicts of interest in the areas of public procurement, tax benefits, land allocation, privatization of state assets.

By October 1, 2021, the following proposals will be sent to the Cabinet of Ministers:

  • the list of officials and employees of the state bodies and the organizations which are strictly forbidden to be engaged in business activity;
  • invalidation of contracts concluded in the event of corruption, including conflicts of interest;
  • restricting the participation of civil servants in entrepreneurial activities.

It is planned to launch an automated system for processing the following information on the prevention of conflicts of interest on the public procurement portal:

  • history of the participant’s participation in public procurement (previous tenders of the product, service provider, work performed);
  • information on the beneficiaries of the participant;
  • possible relationships between the customer and the participant (information about kinship, co-education, employment or business relationships, etc.).

In cases where a conflict of interest is detected through an automated system, the bidder’s participation in the procurement process may be automatically limited.

It is also planned to maintain a register of beneficiaries in Uzbekistan. Proposals in this regard will be submitted to the government by November 1, 2021.

In addition, it is planned to monitor public procurement on the basis of data from a special information portal on public procurement and publish monthly information on its results on the official website by the 15th of next month.

After a detailed study of the monthly data to be published, a conclusion on the presence of a conflict of interest or signs of corruption by the 30th of the following month may also be posted on the websites.

According to the definition in the draft decree, a conflict of interest is “a situation in which the direct or indirect personal interests of a person holding a position specified in the legislation affect or may affect the objective and impartial performance of official (service) duties”. 

Liability is established for those who allow conflicts of interest and do not take timely measures to prevent them.

The Anti-Corruption Agency is empowered to file a motion to terminate a contract, order or other document or to file a lawsuit to invalidate it in the event of any conflict of interest.

From August 1, 2021, the results of tenders (competitions) in the field of public procurement may be made public.

Anti-corruption conditions will be developed, which should be reflected in the contracts concluded within the framework of public procurement, the procedure for inspection of partners in public procurement in the form of tenders (competitions) will be established.

Complaints can be sent electronically on the public procurement portal. They are considered by the Public Procurement Complaints Commission.

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