*Investigators from the Investigative Committee of Russia (SKR) and the FSB are conducting searches at the Moscow offices of Mostostroy-13 and affiliated companies in connection with a case involving the embezzlement of funds allocated by Gazprom subsidiary Gazpromtrans LLC for a highway project in the Yamalo-Nenets Autonomous Okrug (a region in northern Russia). ... According to the case materials, between 2008 and 2010 Mostostroy-13 carried out construction work on the Obskaya–Bovanenkovo highway in the YNAO using money from Gazprom’s subsidiary, Gazpromtrans LLC. Investigators allege that Vladimir Gorshkov and Mikhail Cherepanov, using knowingly forged construction subcontract agreements, *embezzled funds on an especially large scale totaling about 844 million rubles. from here So here’s another excellent (and fresh) example on the subject of the "terrible old Law No. 94 and the magical Contract System with its presumption that the customer acts in good faith". Let’s go to Gazprom’s website, to the "procurement" section. Everything just as proposed by the Ministry of Economic Development and Elvira Nabiullina. announcements, - ongoing procurements, - procurement results. Their beloved "prequalification" is there too. Just wonderful. And Elvira Nabiullina herself sits on Gazprom’s Board of Directors and keeps a strict watch over the Contract System. No stupid, harmful auctions. They looked at quality. They kept fly-by-night firms out. They held "competitive negotiations." And yet on the construction of just one section of the road, the guys casually skimmed off $30 million. And obviously there will be plenty of questions about the quality of the construction too. Apparently they stole it in an especially brazen way, or maybe the kickbacks were too small, so the cops got sent after them. But the harsh truth of life is that at Gazprom, nothing gets bought without a fat kickback. Fully in line with the theory of the customer acting in good faith. They pocket their 30% very conscientiously. Now we wait for the gas industry’s finest traditions to be transferred into public procurement. Things are already lively there, but government crooks can only dream of Gazprom-style arrangements. Well, dreams do come true. At today’s government meeting, discussion of the draft law on the Federal Contract System was removed from the agenda. I’m not much good at interpreting bulldogs fighting under the carpet, so I don’t even know whether that’s good or bad. But today, at the State Procurement 2011 forum, there will be a roundtable on this topic. Unfortunately, I won’t make it there in time, but I’m sure it will be interesting even without me. Update on the roundtable (and apparently on the government as well).