UzAuto Tender Cancelled Due to Corruption Violations Uncovered by Anti-Corruption Agency
Anti-Corruption Agency Discovers Violations in State Procurement Involving Family-Owned Companies
The Anti-Corruption Agency has confirmed serious violations in a state procurement process conducted by UzAuto Motors, with the only two participating and winning companies found to be owned by close relatives. The investigation was initiated following a report on the Telegram channel “Revisor.”
UzAuto Motors had announced the selection of the best proposal for the purchase of components for Nexia-2 car doors, with the procurement commission ultimately accepting a proposal worth 1.3 billion UZS on July 8. However, it was revealed that only two companies, Eko Tsem Komplekt Oborudovanie and Eko Lit Metall, participated in the tender and were declared the winner and reserve winner, respectively.
Further scrutiny by the Anti-Corruption Agency confirmed that the companies are indeed owned by father and son, Anvarjon Mutalipov, previously owning 50% of Eko Tsem Komplekt Oborudovanie.
Public procurement laws prohibit related parties from participating in the same tender, and the companies were subsequently recognized as affiliated entities. UzAuto Motors clarified that no contracts were ultimately concluded with either of the participants.
Officials overseeing state procurement processes are mandated to ensure compliance with regulatory procedures and impartial decision-making, preventing conflicts of interest that could harm other participants. Failure to disclose relationships between bidders results in fines for officials, while larger violations may lead to additional administrative and criminal liability measures.
Following the discovery of these violations, the Anti-Corruption Agency has recommended the annulment of the tender results. Changes have already been made to the public procurement form to reflect the customer’s refusal based on the identified legal violations, with relevant documents forwarded to law enforcement agencies for further action.
The agency stressed the importance of accountability in such cases to uphold integrity in state procurement practices and prevent unfair advantages for connected entities.
