Eliminating corruption
in public procurement
Automated procurement monitoring process
Datanomix Red Flags Management system is a Qlik platform-based application offered for subscription
Datanomix Red Flags Management system is a Qlik platform-based application offered for subscription.
According to the World Bank, public sector procurement forms an average of 13% to 20% of the national GDP in different countries of the world. With this, investigation reveals that the financial losses from corruption may reach 10% to 25% of the total amount of public contracts. Improvement of public procurement management is decisive for sustainable economic growth and global welfare promotion.

This is why we developed Red Flags Management, an analytic system, which automatically finds risky tenders and contracts and attracts auditors' attention to the objects put under the highest risk of wastage.
Law enforcement bodies and supervising authorities achieve impressive economic effects when analyzing public procurement with the use of the Red Flags Management system.
According to the World Bank, public sector procurement forms an average of 13% to 20% of the national GDP in different countries of the world. With this, investigation reveals that the financial losses from corruption may reach 10% to 25% of the total amount of public contracts. Improvement of public procurement management is decisive for sustainable economic growth and global welfare promotion.

This is why we developed Red Flags Management, an analytic system, which automatically finds risky tenders and contracts and attracts auditors' attention to the objects put under the highest risk of wastage.
Law enforcement bodies and supervising authorities achieve impressive economic effects when analyzing public procurement with the use of the Red Flags Management system.
Red Flags Management annually analyzes data about procurement
in the amount of USD 22 bln
With Red Flags Management, the Government of Kazakhstan has saved
in the amount of USD 86 mln
The Red Flags Management system is used by
more than
40 companies
Red Flags Management annually analyzes data about procurement
in the amount of USD 22 bln
With Red Flags Management, the Government of Kazakhstan has saved
in the amount of USD 86 mln
The Red Flags Management system is used by
more than
40 companies
in public and private sectors
The App helps auditors and NGOs to spot risky procurements
The App helps auditors and NGOs to spot risky procurements
Preventive measures

Checking risky public procurements preemptively to make corrective actions in due time

• Automatic red flags identification

Focusing the attention of auditors on riskiest procurements


The system capability
The system capability
Procurement control
o Compliance control in procurement. Identification of risks and potential process violations at any stages of procurement, from planning to payment.

o Control of procurement compliance with the strategic indicators. Preventive control of achievement of the strategic KPIs, such as demographics of purchasing in small and medium enterprises, domestic manufacturers; compliance with ESG principles; purchase rate of a specific source, etc.

o Timeliness control of procurement plan publication. Identification of the risk of late delivery in procurement, as well as identification of customers who tend to breach procurement schedules.

o Timeliness control of procurement processes.
Cost analysis for the fungible commodities
Based on data provided by external (public procurement) and internal sources. For the purpose of budgeting and marginal cost pricing. It allows analyzing:

o A median price to the given commodity, as well as a regular price range

o Dynamics of the median price adjustment

o "Price-destination region" relation

o "Price-competitive procurement process" relation

o Errors and abnormal prices, including dumping and overpricing
Performance analysis of the procurement process
Performance analysis of the procurement process for the purpose of strategic change planning.
Competitiveness analysis by different categories.
Analysis of the procurement processes duration by categories.
Procurement benchmarking
Comparison of procurement data among subsidiaries, as well as with other market players (based on external data).
Procurement control
Cost analysis for the fungible commodities
Based on data provided by external (public procurement) and internal sources. For the purpose of budgeting and marginal cost pricing. It allows analyzing:

o A median price to the given commodity, as well as a regular price range

o Dynamics of the median price adjustment

o "Price-destination region" relation

o "Price-competitive procurement process" relation

o Errors and abnormal prices, including dumping and overpricing
Performance analysis of the procurement process
for the purpose of strategic change planning.
Competitiveness analysis by different categories.
Analysis of the procurement processes duration by categories
Procurement benchmarking
Comparison of procurement data among subsidiaries, as well as with other market players (based on external data).
«Our system naturally includes human and automated data processing: it identifies the risks (so called red flags) to attract auditors' attention, but avoids hitting them with labels, because often the deficiencies arise from a human factor: a mistake, carelessness or simply idleness, rather than malicious intent»

Vitaliy Trenkenshu
Managing partner of Datanomix.pro
«Our system naturally includes human and automated data processing: it identifies the risks (so called red flags) to attract auditors' attention, but avoids hitting them with labels, because often the deficiencies arise from a human factor: a mistake, carelessness or simply idleness, rather than malicious intent»

Vitaliy Trenkenshu
Managing partner of Datanomix.pro
Risk examples
Risk examples
Too short delivery period for a large lot of goods
Overpricing while purchasing from a specific source
Supplier's affiliation with the buyer's management (relatives, former colleagues, classmates)
Emergency purchase at the end of the year
Please e-mail us to receive a complete list of indicators used by Datanomix.pro team to assess corruption risks existing in public procurement.
Data sources
Data sources
Today the Red Flags Management system uses large datasets (over 100 million lines in total) which are updated on a daily basis:

Today the Red Flags Management system uses large datasets (over 100 million lines in total) which are updated on a daily basis:
Public procurement data
Procurement plans, tenders, contracts, customers, suppliers
Fiscal data
Of companies split by budget lines
Database for certificates of origin for goods
Domestic manufacturers
Register of bad-faith suppliers
Prohibition of further participation in public procurement
Risky companies
Bankrupts, debtors, fake companies
Legal entities
Public and private companies, CEOs, addresses
Following your request, we can involve other sources being relevant for the given country, authority, or enterprise.
Following your request, we can involve other sources being relevant for the given country, authority, or enterprise.
«In the first 6 months of using the system, Kazakhstan's Financial Police had conducted automated analysis of 2 115 344 items in procurement plans and 1 159 639 contracts which total amount exceeded USD 14 bln. As a result, 132 929 items were found to contain risk factors. The Internal State Audit Committee reported that it had already revealed the financial irregularities amounting to a total of USD 305 mln. Almost 70% of triggers were detected at the planning stage and had been successfully corrected. Total of 1 685 buyers were brought to disciplinary responsibility. Following the inspection and review measures, 190 files were submitted to the law enforcement bodies. As a result, more than USD 86 mln of taxpayer money were saved».

Vitaliy Trenkenshu
Managing partner of Datanomix.pro
«In the first 6 months of using the system, Kazakhstan's Financial Police had conducted automated analysis of 2 115 344 items in procurement plans and 1 159 639 contracts which total amount exceeded USD 14 bln. As a result, 132 929 items were found to contain risk factors. The Internal State Audit Committee reported that it had already revealed the financial irregularities amounting to a total of USD 305 mln. Almost 70% of triggers were detected at the planning stage and had been successfully corrected. Total of 1 685 buyers were brought to disciplinary responsibility. Following the inspection and review measures, 190 files were submitted to the law enforcement bodies. As a result, more than USD 86 mln of taxpayer money were saved».

Vitaliy Trenkenshu
Co-Founder and СЕО of Datanomix.pro
International best practices
International best practices
Red Flags Management system automatically identifies potential risks and deficiencies in procurement at any stages from planning to payment while analyzing data with 43 criteria.

In addition to Datanomix team's own knowledge and law enforcement practice gained by our customers, our methodology includes international best practices in identification of public procurement risks: the risk indicators applied by the World Bank, OECD, EBRD, Open Contracting.

The system helps ensure compliance with the sustainable public procurement principles, that means social problems are solved and positive environmental impact is addressed together with economic efficiency. Examples:

· Small and medium business development

· Local production support

· Requirements for energy efficiency, reduction of water consumption, recycling, pollution control

· Requirements for budget savings, rationalization of real need for the goods, improvement of procurement efficiency, innovative development.

Technical advantages
Technical advantages
Fully interactive data processing
All tables, diagrams and charts are interactive: you can filter or sort data and go deep into details. When clicking on any record, all the report diagrams and charts will reconstruct automatically to represent procurement statistics for this single record only.
Working online or offline on mobile devices
iOS / Android mobile app is available for smartphones and tablets. You can work in a fully interactive mode from any mobile device.
Creating any types of reports
You can set any report form: flat table, pivot table; filter data by any table fields, sort table data by any parameters, upload Excel tables.
Creating any interactive dashboards
It allows to visualize interactive dashboards using 20+ types of diagrams, as well as tables and charts.
Fully interactive data processing
All tables, diagrams and charts are interactive: you can filter or sort data and go deep into details. When clicking on any record, all the report diagrams and charts will reconstruct automatically to represent procurement statistics for this single record only.
Working online or offline on mobile devices
iOS / Android mobile app is available for smartphones and tablets. You can work in a fully interactive mode from any mobile device.
Creating any types of reports
You can set any report form: flat table, pivot table; filter data by any table fields, sort table data by any parameters, upload Excel tables.
Creating any interactive dashboards
It allows to visualize interactive dashboards using 20+ types of diagrams, as well as tables and charts.
Our clients
LLP Samruk-Kazyna Contract
Internal State Audit Committee of the Ministry of Finance of the Republic of Kazakhstan
Ministry of Finance of the Republic of Kazakhstan
Center for Electronic Finance of the Ministry of Finance of the Republic of Kazakhstan
Agency for Financial Monitoring of the Ministry of Finance of the Republic of Kazakhstan
General Prosecutor's Office of the Republic of Kazakhstan
National Chamber of Entrepreneurs "Atameken"
JSC Kazakhtelecom
Our clients
LLP Samruk-Kazyna Contract
Internal State Audit Committee of the Ministry of Finance of the Republic of Kazakhstan
Ministry of Finance of the Republic of Kazakhstan
Center for Electronic Finance of the Ministry of Finance of the Republic of Kazakhstan
Agency for Financial Monitoring of the Ministry of Finance of the Republic of Kazakhstan
General Prosecutor's Office of the Republic of Kazakhstan
National Chamber of Entrepreneurs "Atameken"
JSC Kazakhtelecom
References
Kavkitaev Almas Keskirovich, Deputy Chairman, the Internal State Audit Committee of the Ministry of Finance of the Republic of Kazakhstan
In virtue of this project, the state audit system has made a leap forward to further development and digital transformation. The project team assisted us in collection and effective management of big data. As a result, state audit function significantly increased its preventive care and reduced corruption risks. Process automation and data management system represented by this project offered new opportunities and perspectives for further improvements. I am grateful to the team members for their high professionalism, creativeness, and passion for their work!
Elimanov Zh. K., Chairman, the Financial Monitoring Agency of the Republic of Kazakhstan
In cooperation with the General Prosecutor's Office, we are conducting the crime prevention campaign 'Kazyna'. As a part of this campaign, we have identified more than 90 unfaithful preferred bidders which repeatedly performed transactions with shell companies in the total amount of 63 bln Kazakhstani tenge. 20 criminal cases were initiated on that basis. Regarding the others, diligence actions are in progress.
Elimanov Zh. K., Deputy Head, Public Interest Protection Service
After the analysis conducted with the Datanomix system, we have identified 37 schemes which harmed a state in the amount exceeding 55 bln Kazakhstani tenge.
The Financial Monitoring Agency of the Republic of Kazakhstan
We have managed to speed-up data processing and analysis several hundred-fold and double the performance of the analysts.
Olzhas Bektenov, Head, Data Analytics Department (as adapted from the news release by the Financial Police)
The situation center allows, based on the available data sources, to conduct analysis, reveal criminal structures and schemes, and identify connections between the subjects as family ties, social ties, affiliation, or any other given parameters.
Data Analytics Department, (as cited from the report made before the Secretary of the Security Council)
Altogether, more than 100 criminal cases with the total losses reaching 6.3 bln Kazakhstani tenge were initiated in the recent 2 years against the risky enterprises identified in the course of data analysis. Following the tax checks, additional tax in the amount exceeding 11 bln tenge was charged.
Awards
The system has received several international awards
Start using
Start using
The Procurement Analytics system is supplied as a turnkey solution, so you can start saving on procurement immediately. Contact us to learn the price to Datanomix Procurement Analytics and subscription options.
If you prefer customized settings, our certified experts at Datanomix.pro will be happy to help you complete the following tasks:
The Procurement Analytics system is supplied as a turnkey solution, so you can start saving on procurement immediately. Contact us to learn the price to Datanomix Procurement Analytics and subscription options.
If you prefer customized settings, our certified experts at Datanomix.pro will be happy to help you complete the following tasks:
Upload custom data sources
Prepare reports based on custom requirements / forms / templates
Create interactive dashboards based on your layouts / slides
Automatically distribute any reports to e-mails following the given time schedule
Automatically create interactive presentations based on your requirements
Upload custom data sources
Prepare reports based on custom requirements / forms / templates
Create interactive dashboards based on your layouts / slides
Automatically distribute any reports to e-mails following the given time schedule
Automatically create interactive presentations based on your requirements
About us
About us
Datanomix is a Central Asia IT company specialized in Qlik technologies. More than 20 certified consultants located in Almaty and Nur-Sultan assist public institutions and major commercial entities in making the most of data. Over the recent three years we had successfully completed 110+ projects, some of which have received prestigious international awards. We proactively distribute knowledge and collaborate with civil society.
Datanomix is a Central Asia IT company specialized in Qlik technologies. More than 20 certified consultants located in Almaty and Nur-Sultan assist public institutions and major commercial entities in making the most of data. Over the recent three years we had successfully completed 110+ projects, some of which have received prestigious international awards. We proactively distribute knowledge and collaborate with civil society.

In official partnership with Qlik®

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• Government Specialization

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+7 701 758 17 04
info@datanomix.pro
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