Procurement Practices
Management of material topics
Procurement processes are managed in accordance with the regulatory documents of the authorized procurement body of
Samruk-Kazyna JSC and the Company’s internal documents. The Foundation’s electronic procurement information system
is an instrument for managing procurement processes.
The company adheres to the following procurement principles:
- cost minimization;
- timely provision of the necessary goods, work and services of the required quality;
- transparency and transparency of the procurement process;
- control and responsibility for decisions made.
The procurement system is being developed at the Fund level. Together with the Fund, Category-based Procurement Management Strategies are being developed.
To increase the share of local content in procurements, a local project office for import substitution was created
on the basis of Telecom Komplekt Directorate, aimed at working with the instructions of the authorized bodies on
procurement and import substitution, as well as with the Central Project Office of Samruk-Kazyna JSC. In addition,
each year the authorized body on procurement of the Fund determines the performance targets to increase the share of
local goods, works and services in the procurement.
The geographic definition of “local” and the main place of Kazakhtelecom JSC’s activity implies the country of the
Company’s presence — the Republic of Kazakhstan.
Share of spending on local suppliers
| Indicators | 2020 | 2021 | 2022 |
|---|---|---|---|
| Number of suppliers | 2,328 | 2,312 | 2,133 |
| Purchase amount, thousand KZT | 91,900,000 | 70,500,000 | 93,283,774 |
| Number of purchases from local suppliers, thousand KZT | 90,865,589 | 49,830,167 | 27,434,683 |
The significant changes in the indicators compared to the previous year are due to the fact that the method of
calculation has been changed in 2022.
Kazakhtelecom JSC has created a Test Laboratory. The testing laboratory is a structural division of the DTC and is
intended for testing products in the declared area of accreditation, as well as for initial control over cable and
wire products, patchcords, splitters, and AKB. Accreditation certificate No. KZ.T.02.2382 was received on
30 September 2020.
The laboratory’s activity is supported by highly qualified experts, and about 60 different reviews are performed
with the provision of test reports. The laboratory is accredited by the NCA, which confirms the maximum reliability
of the tests performed.
In the reporting period, the Company continued to conduct procurement procedures using competitive methods, which
were less developed in the past. In 2022, the share of procurements by competitive method significantly increased,
and several other methods were used, including open tender with price quotations.
Kazakhtelecom JSC attaches special importance to cooperation with local suppliers, preferring to procure goods and
services from them. In its activity the Company follows the state policy aimed at development of national economy
and local content.
Plans for 2023 and the medium term
In 2023, the Company aims to increase the share of local content in the procurement of goods, works and services, to introduce new procurement rules on the electronic platform of the Fund, to develop a Supplier Code of Conduct, and intends to increase the percentage of competitive method and strengthen partnerships with local communities in various ways.