Procurement Risk:
Critical
Score:
7/100
Government Policy
Q57
0/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. Azerbaijan has no special legislation on defence and security procurement; the main law governing…
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There is no defence specific legislation that covers defence and national security procurement. There are some documents (Concept of National Security, Military Doctrine, State…
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This indicator has been marked Not Applicable. Azerbaijan has no special legislation covering defence and security procurement, the main law governing public procurement in…
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Q58
0/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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There is no legislation regulating all defence procurement processes, including public access to information to procurement activities. Minister of Defence Zakir Hasanov said at…
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Currently, in Azerbaijan, there is limited access to information on procurement by civil society organizations and the media. The defence procurement cycle is disclosed…
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There is no legislation regulating all defence procurement processes, including public access to information to procurement activities. Minister of Defence Zakir Hasanov said at…
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Q59
0/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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The main procurement agency in Azerbaijan is the State Service for Antimonopoly Policy and Consumer Rights Protection under the Ministry of Economy (1). Procurement…
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This indicator has been marked Not Applicable. Defence procurement control mechanisms are almost non-functioning. There are no reports on the defence procurement the official…
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This indicator has been marked Not Applicable. Currently, in Azerbaijan, there is limited access to information on procurement by civil society organizations and the…
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According to experts (1, 2, 3), Azerbaijan does not have a strategic procurement program in the military field and, therefore, the procurement policy is…
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The government’s plans for planned purchases are not publicly available. There is no information about potential tenders available. In a number of cases, general…
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Some defence purchases are not made public, and there is a little security justification as to why this information is withheld. In media reports,…
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Information on procurement, tenders and their results is almost never disclosed. In some cases, information on the purchase of weapons and military equipment is…
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Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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Q63
17/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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According to experts, procurement requirements are reflected in the Military Doctrine. At the same time, however, reality shows that Azerbaijan is also implementing political-based…
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Experts believe that currently there is no independent investigation of actual purchases. If such work is carried out within the government, then it is…
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According to the Statute of the Ministry of Defence Industry procurement is carried out per the State Defence Order Program (1). Although the Military…
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Tender Solicitation, Assessment and Contract Award
Q64
0/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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According to Article 11.1 of the Law on Public Procurement, the number of bidders must be at least three for participation in the tender.…
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There is no practice to scrutinize closed tenders in the security and defence sectors. Procurement controls are formally available but are not implemented. Chamber…
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Q65
25/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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There are ethical conduct rules for procurement officials. The information was provided on the website of the State Service for Antimonopoly Policy and Consumer…
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Audit trails are formally available, but they are very general, and they are not implemented for the defence and security sector. The Chamber of…
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There is little information about the procedures for organizing the tender boards, procedures, activities and so on. At the same time according to official…
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Article 38 of the Law on Public Procurement is called “Responsibility of the tender commission”. According to this Article (38.1), the Chairman and members…
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Q66
19/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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There is no legislation specific to the defence and security of measures to punish collusion between bidders for defence and security contracts. However, according…
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The Civil Code (1) and the Criminal Code (2) prohibit collusion that violates free competition. The Criminal Code warns of imprisonment of up to…
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No one has ever been arrested in Azerbaijan for “collusion in the tender”. The public is not informed about “collusion offences” that have taken…
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There is no information on any kind of workshops or seminars relating to the current legislation (1).
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Contract Delivery and In-Service Support
Q67
0/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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Section 39 of the Civil Code (1) mentions the duties, responsibilities and responsibilities of the contractor in general. Article 385 of the Code deals…
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There is a serious gap in the contractors’ activities in the country. Experts believe that one of the main points of corruption is related…
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Procurement offices do not provide any information regarding contractors’ activities. Over the past five years, concrete information has not been found. The primary reason…
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The Law On Public Procurements provides complaint mechanisms for violations of the law. According to the Article 55.1, if a consignor (contractor) states that…
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Q68
33/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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Article 38 of the Law on Public Procurement (1) is “Responsibility of the tender commission”. According to Article 38.1, the chairman and members of…
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The complaints mechanisms available to companies are inefficient. Observations show that most of the companies that have won the tenders are close to officials,…
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Article 55 of the Law on Procurement (“Right to appeal”) states, if the procuring entity fails to perform its duties and as a result…
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There are no concrete articles in different laws (Law on Procurement, Criminal Code) that state that procurement officials have authority to exclude companies or…
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The winning company should support the existing political power. If they do not support, they have no chance of winning. At the same time,…
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According to the expert, the reports of the Chamber of Accounts do not reflect the opinion on the efficiency (or inefficiency) of public procurement…
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Offset Contracts
Q70
0/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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The Azerbaijani government does not officially disclose any offset contracts and financial transactions on them. Ministry of Defence Industry says the ministry cooperates with…
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There is no evidence to indicate that the government imposes anti-corruption due diligence or auditing requirements on offset contracts.
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The legislation on offset contracts is very weak. There are no serious rules about offset contracts. The Law on the Rules of Conclusion, Execution…
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President Ilham Aliyev in an interview with the Russian press in 2016 said: “We purchase weapons, in addition to Russia, in Turkey, Iran, Belarus,…
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Offset contracts are not transparent, and there is no information on delivery obligations and problems. Procurement offices do not report on this process (1).…
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The government does not provide any information regarding the rules for conducting offset contracts. From this point of view, there is no information on…
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The Law on Procurement (1) and the Law on Tender (2) do not regulate offset contracts issues. The Azerbaijani government does not refer to…
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Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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Legislation in Azerbaijan does not prohibit the participation of agents and mediators in the procurement process. According to Article 22.2 of the Procurement Law,…
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This indicator has been marked Not Applicable. Azerbaijan does not prohibit the participation of agents and mediators in the procurement process.
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Financing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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Contracts, payments, and so on are fully closed. The Ministry of Defence and other military organizations do not disclose this information and in most…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. Some acquisitions are granted as a result of political influence by seller nations, but…
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This indicator is not assigned a score in the GDI. Most of the time, the government justifies purchases by referring to military need. President…
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This indicator is not assigned a score in the GDI. There is almost no domestic pressure and influence the government to make decisions in…
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