Military Review

Thieves in uniforms and jackets. Corruption in the defense industry and the army is detrimental to the state’s defense

31
22 April 2013, the Commission of the Public Chamber of the Russian Federation on the problems of national security and socio-economic conditions of life of military personnel, their families and veterans held a hearing on "On improving the quality of management and control in the defense industry as the most important factor in countering corruption." We publish excerpts from the speeches sounded.


Fishing for minnows in muddy water

We receive many appeals related to the issue of management decision-making in the Ministry of Defense, including on Oboronservis. After Serdyukov’s resignation, major commanders and specialists came to the Public Chamber with a request to bring to the public information that it was the former defense minister who instigated the corruption component, removing the professionals and placing responsible amateurs who made decisions under his pressure to responsible posts.

Thieves in uniforms and jackets. Corruption in the defense industry and the army is detrimental to the state’s defense

Probably, it is time to stop catching minnows in this muddy water. It is necessary to see who is at the helm, how professionally trained and controlled these people are by law enforcement agencies, state leaders and public figures. The issue of control is secondary. After the decision has been made and the money has gone, we can only suspend this flywheel, but the matter itself is already twisted and after a year or two we study the materials of the Accounts Chamber, the Prosecutor General’s Office, the Chief Military Prosecutor’s Office and are outraged: billions have been stolen.

The main question is who makes the decisions. How responsible are these people, to what degree can we trust them, do they really approach the work like a state?

The defense industrial complex is our armor, the shield of the country. And the corruption eating away at him strikes a blow not only on the economy, but also on national security.

Alexander Kanshin,
Chairman of the Commission of the Public Chamber on the problems of national security and socio-economic conditions of life of military personnel, members of their families and veterans


Increasing existing risks

The practice of control and supervisory activities of the Rosoboronzakaz testifies to a sufficiently large number of violations that are permitted by the subjects of the state defense order, as well as to high corruption risks in organizations that participate in this process.

This is due to a number of factors that significantly increase existing risks. These include unreasonable decisions on the one hundred percent advance of the state defense order.

The risk of a corruption component in the field of state defense procurement also increases the lack of clear rules for the use of certain approaches in the pricing of products. For example, the price of work for the manufacture of submarines, ships, for carrying out long-term development work was determined practically by an expert.

Another example is the violation by the subjects of the state defense order of the requirements established by regulatory acts that govern the use of federal property. Identified cases of delivery of products for the state defense order on the documents that were issued in violation of scientific and technical documentation.

In addition, in the performance of government contracts, enterprises used spare parts, components, obtained as a result of the execution of other contracts - on the disposal of weapons and military equipment.

The main, in our opinion, direction of the fight against corruption in the field of the state defense order, as well as creating conditions for reducing corruption risks is the adoption of the necessary legal acts in this area.

Rosoboronzakaz takes part in this work. The Deputy Prime Minister of the Russian Federation, Dmitry Olegovich Rogozin, approved a schedule for the preparation of government regulations required for the implementation of Federal Law 275.

The Ministry of Economic Development has also developed a draft plan of measures for the implementation of the federal law of April 5 2012 No. 44 ФЗ - on the contract system in the field of procurement of goods, works and services for state and municipal needs. We believe that our participation and the implementation of these activities will increase the substantial efficiency of budget spending and reduce corruption risks.

Pavel Kravchenko,
Head of the Federal Service for Defense Order


Subsidies for dependents

During inspections conducted in the fourth quarter of 2012 and in the first quarter of 2013, we focused on the enforcement of the 223 law and special decrees of the government of the Russian Federation by joint-stock companies of the military-industrial complex. Procurement of defense enterprises does not fully meet the objectives of this law in terms of informational openness, transparency, choice of supplier, contractor, expansion of the possibility of participation of legal entities and individuals in procurement, and also contain unclear conditions, managed by the procurement organizers. This creates the likelihood of corruption risks when spending money on the purchase of goods, works and services, which then fall into the price of manufactured products of defense enterprises.


Monitoring of information on procurement carried out by joint-stock companies of the military-industrial complex, located on their own websites, showed that not all customers, building a system of procurement, comply with the principles established by 223 law. Joint stock companies violate the principle of transparency of procurement. Every third joint-stock company OPK does not publish procurement plans in open access. Many have posted on the site procurement plans contain an insufficient amount of information, which, naturally, reduces the competitive environment.

Every second joint-stock company OPK does not post information on entering into direct contracts with sole suppliers and contractors, and does not publish monthly procurement reports.

Procurement of joint-stock companies of the military-industrial complex does not meet the principle of expanding the competitive possibilities of the participation of businesses and individuals in procurement.

A serious problem is the placement of tender documentation. In some cases, it is not available for a potential bidder. Either access to it is complicated, or it is printed in such a way that it is practically impossible to download and submit documents to the competition in a timely manner.

They bear the risks of corruption and reduce the efficiency of the military-industrial complex and the following positions. First of all, the lack of project management at many enterprises. Only three percent of enterprises performing the state defense order, carry out their activities in accordance with the project. Our checks show: where there are project management, where the procedure is transparent, there is an effect. Such an enterprise works successfully, product quality and financial situation are good. There is no project management, as a rule, dependent enterprises. And for some reason, most of these enterprises receive funds from the state budget - as subsidies, support, and investments.

Recently it has become a practice in order to optimize production to dispose of allegedly non-core assets. They are sold at fairly low prices. We saw this, in particular, on the example of Oboronservis.

A serious problem is the targeting of subsidies and government support. Now, as a rule, this is done through holding companies. Not all enterprises included in the holding receive this support in accordance with their tasks. Enterprises where production should produce products today, for some reason, do not receive government support. And those whose products will be needed in two or three years, get full.

We also disclose such cases when holdings form their income base by entering into contracts with their member enterprises. Suppose to develop a plan for a conference on quality issues. Price of work - 300 million rubles. The result is 25 printed pages. Is this work worth the money? Does the holding company need to do exactly this work?

These are, in our opinion, today the main pain points in the question that we are discussing today.

Victor Partyin,
Chief of Inspectorate of the Accounts Chamber


Do not create conditions for rollbacks

Speaking about the composition of measures that are focused on the elimination of the prerequisites of corruption of officials, employees of enterprises, the following should be noted. The agency is aggressively pursuing the formation of pricing methodologies for the main products of the rocket and space industry. This applies primarily to the rocket-space, combat missile technology.

In addition, the agency seeks to expand the list of sole performers in order to get away from competitive procedures and not create conditions for kickbacks and other negative aspects related to corruption of officials or persons offering their services for the implementation of the order.

Regardless of the corporatization of enterprises in the industry, the agency seeks to maintain a certain scheme of control measures in these societies, using the office of the board of directors, audit commissions, and other possibilities. We try to ensure that key issues of the economy of enterprises, regardless of their legal form, remain in the control of the agency.

One of the measures contributing to the elimination of the corruption component is to increase the independence of the working competitive commissions. Their number has been reduced, and the specialists included in the commissions are selected according to the principle of minimal dependence on enterprises capable of participating in tenders.

As for corporate governance, measures are primarily aimed at preserving or expanding the participation of federal structures in corporate governance bodies. We are trying to ensure that in every joint-stock company on the board of directors there are representatives of the Federal Space Agency and the Federal Property Management Agency.

Particular attention is paid to the selection of enterprises auditors to assess their financial and economic component. As a rule, these procedures have a competitive basis, but we strive to attract the most conscientious, responsible, prepared and economically independent organizations for the audit.

An important direction is to identify the factors that determine the interest of certain managers in the execution of transactions, and accordingly - careful attention to the approval of transactions proposed by the management of enterprises. Together with the Federal Property Management Agency, we are interested in the transparency of the transaction, the clarity of its ultimate goal and the system of interaction with banks. The main thing is that in this chain there should not be persons who have a certain affiliation or interest in a transaction that is not related to the interests of the enterprise.

The implementation of these measures will significantly limit the possibility of corruption factors, thereby increasing the efficiency of the space industry as an element of the defense industry.

Sergey Ponomarev,
Deputy Head of the Federal Space Agency


Eliminating white spots

Corruption potential in the system of placing the state defense order is significantly lower than in the civilian sector.

Although, of course, the defense industry organization is not completely free from this vice. Our enterprises do not work in a vacuum, there is also a management that is not good at all, which uses white spots in its legal field.

Creating appropriate regulatory, organizational, institutional and financial-economic conditions will allow minimizing corruption factors and risks.

Taking into account the fact that the number of public administration objects has been reduced by more than an order of magnitude, the transition to financing state defense orders and investment projects is now underway through the head organizations of integrated structures. Conditions have been created when we can distribute flows not in bulk to all enterprises existing in the defense industry, but through state corporations and holdings.

The head organizations of the integrated structures become the head performers of the main part of the orders of the Ministry of Defense. By their status, they are state-owned companies, therefore, they are subject to all anti-corruption measures, including those provided for by 223-m federal law. There is work to do.

The most resource-intensive part in the development of the defense industry is implemented through the activities of the Federal Target Program for the Development of the Military-Industrial Complex until 2020, a set of measures for the technical re-equipment of military industries, formed as a strictly targeted document. These activities are planned in the structure of armaments with indication of specific objects of capital investments, the timing of their commissioning, volumes and financing structure, which allows to neutralize the corruption potential existing in the mechanism of placing state orders.

A set of measures to improve corporate governance is being implemented. Independent directors are nominated and elected to the boards of directors of state-owned companies, including parent organizations, integrated defense industry structures. When boards of directors are formed committees on strategic planning, personnel, audit, which carry out a detailed study of issues submitted to meetings of boards of directors. These are large transactions, the sale of non-core assets, and so on.

The range of issues considered by boards of directors has been significantly expanded. They approve the development strategy of a corporation or a joint-stock company, medium-term programs of activity, programs of innovative development, restructuring and optimization of assets. Thus, the regulatory role and control of the activities of the executive bodies of state-owned companies are significantly enhanced.

The most important direction in improving the management of defense organizations is the transformation of holdings created with the participation of the state into concerns, that is, effectively managed industrial companies of multi-divisional type.

In order to exclude a conflict of interest in concluding contracts in accordance with the current legislation, an order was given to industry departments of the Ministry of Industry and accordingly translated into industry holdings and subordinate enterprises to ensure that state companies develop and approve internal documents and regulations on keeping a register of persons obliged to provide information on the presence of interest in deals, establishing disciplinary responsibility for failure to provide information about the presence of a conflict of interest, as well as to ensure the placement of these documents on the interdepartmental portal on state property management, in the personal offices of enterprises and joint stock companies and the provision of documents to the Ministry of Industry and Trade.

As part of corporate events with the participation of representatives of the interests of the Russian Federation delegated by the Ministry of Industry and Trade, an order was given to approve in joint-stock companies, where the state has a blocking package, an internal document on keeping the register of persons obliged to provide information on the existence of an interest in making transactions, on establishing disciplinary responsibility for failure to provide such information. Currently, enterprises have approved internal documents, regulations on the maintenance of the register of persons obliged to provide such information.

There are a number of measures that are actively implemented in enterprises and are directly related to the remuneration of enterprise management for the implementation of economic measures.

In accordance with the assignment of the President of the Russian Federation No. PR-113 of January 17 of 2013, the Ministry of Industry and Trade gave instructions for the provision of property information by the heads of state corporations and state-owned companies, as well as joint-stock companies where the state has a blocking package , on income, property and property obligations of their spouses, spouse and minor children. In addition, the ministry is in coordination with the relevant directive of the Federal Property Management Agency.

Features of the defense industry, the ongoing structural reform, improving the quality of corporate governance in the defense industry, as well as implemented system-wide anti-corruption measures generally improve management and control efficiency and, thus, reduce the overall level of corruption.

As for the individual revealed negative facts, they require specific and professional consideration both from the point of view of our supervisory authorities - this is the Accounts Chamber, Rosoboronzakaz, and from the point of view of law enforcement agencies.

Sergey Dovguchits,
Advisor to the Minister of Industry and Trade


Shepherds businesses

The Federal Tariff Service often faces the fact that enterprises (both individual and holding companies) do not have specific, detailed cost reduction programs - with personal responsibility, consolidation by product type. If there are no such documents or they are of a slogan nature, then, as a rule, there is no systemic pricing in the enterprise.

A typical situation - the company can not answer why it costs so much. And government customers are forced into this discussion. And that is the situation that has all the signs of corruption, when they agree on "concepts". This is totally wrong.

Another important circumstance is the price of the product and the price of the contract. In the contract may be one hundred, ten, twenty, thirty products and may be the so-called binding. Here we looked at a number of contracts for the Almaz-Antey air defense concern. The cost of basic products for which we register the price is 10 percent of the amount, everything else - fire extinguishers, ladders, UAZ, and so on. Why it costs so much, no one can answer. And if you take similar products in the previous order, there are other figures. This is a huge field for combating corruption, to which we must pay serious attention.

In my opinion, if Roskomos and Rosatom are well advanced in these matters, as they say, they “graze” their enterprises, then the Ministry of Industry and Trade simply does not physically have such forces. The efficiency enhancement functionality needs to be driven into the functionality of management companies and holdings. And holdings should be held responsible for this - again, not on the basis of certain slogans and beautiful reports, and this should be written down in job descriptions, assigned to specific managers and digitized.

In the fuel and energy sector, this practice works. Managers bear professional responsibility and receive a good salary, high bonuses. For targets, they meet the head and pocket.
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  1. Canep
    Canep 22 May 2013 06: 10 New
    +2
    A typical situation is that the company cannot answer why it costs so much.
    I don’t know how in Russia, but at those enterprises in Ekibas where I worked, the question was answered by calculating labor costs and costs for materials (technologists) and the price was set by them (economists) taking into account profit (15-25% depending on greed), and if the customer is interested, he could always get (time required for registration) a detailed calculation of the cost of a particular work. Sometimes the preliminary price was called forward for difficult and (or) urgent work, it fell into the contract, then the final cost was compulsorily calculated, which was drawn up by the estimate and by which the final calculation was made.
    1. Phantom Revolution
      Phantom Revolution 22 May 2013 06: 30 New
      +1
      You see, the calculation of the cost in state. companies and large firms goes on a different type. A man comes to the seller, comes to the director and says, they say 90 thousand thousand 30 thousand. Are you returning 60 to me, are you satisfied? It's just that these kickbacks are automatically embedded in them.
      Because in the military-industrial complex, a spontaneous increase of 2 times is suspicious, especially when it comes to hundreds of millions.)
      1. Canep
        Canep 22 May 2013 07: 36 New
        +3
        This is the whole problem, I remember when Putin was told that the springboard in Sochi has risen in price by 9 times, and is still not ready, he immediately found the culprit. But the GDP in all matters simply physically does not have time to enter. Private traders are easier to work with in this regard.
        1. Phantom Revolution
          Phantom Revolution 22 May 2013 09: 13 New
          0
          Then I think it is necessary for him to dissolve the administrative apparatus, if he does not cope with the tasks. But for now, what I see, even if they find the guilty, like Serdyukov, they will not be imprisoned. They plant a small bipod, which is promised compensation for life.
          1. mansur
            mansur 22 May 2013 11: 33 New
            +1
            Everyone has heard about thieves in law, but they have a clue, they know what honor is and, in principle, if you are a simple honest hard worker, they have nothing to do with you

            But thieves in uniforms and jackets are already hitting us for all ordinary citizens and for the interests and defense capabilities of the state, they have no idea what is the honor for them an empty phrase
    2. honest jew
      honest jew 22 May 2013 11: 41 New
      +4
      And what is weak to plant all corrupt officials and bribe takers?
      1. honest jew
        honest jew 22 May 2013 11: 44 New
        +1
        there is a law !!!!
        1. bask
          bask 22 May 2013 13: 04 New
          0
          Thieves in uniforms and jackets. Corruption in the defense industry and the army adversely affects the defense capabilities of states

          Not only not the defense of the state.
          But the very existence of Russia as an independent state.
          DO NOT DEFEAT CORRUPTION IN RUSSIA.
  2. pinecone
    pinecone 22 May 2013 06: 13 New
    +1
    "A draft action plan has been developed," "The Agency is persistently following the path of forming the definition of price methods for the main types of products."
    People work, eradicate individual shortcomings.
  3. kind
    kind 22 May 2013 06: 27 New
    +6
    Yes, what kind of fight against corruption can we talk about if laws are written and enforced by those with whom these laws call to fight!
  4. fenix57
    fenix57 22 May 2013 06: 50 New
    +2
    Very smooth on paper, but forgot about the ravines.
    "The corruption potential in the system of placing the state defense order is significantly lower than in the civilian sector."- judging by the revealed scale of theft under Serdyukov and K. - I can hardly believe it!
  5. Uncle lee
    Uncle lee 22 May 2013 06: 54 New
    +8
    The defense industry enterprises must be state owned and strictly controlled by the state, and military envoys should monitor quality. Then there will be no kickbacks and the quality will increase. This is where it suits - CJSC, LLC, OJSC and TU instead of GOST.
    1. servant
      servant 22 May 2013 07: 11 New
      0
      And the kickbacks will go to military representatives .....
  6. yustas
    yustas 22 May 2013 07: 06 New
    +2
    They answer for targets with their head and pocket.

    A couple of times they would answer with their heads, others would think ... and how to receive loot, so all managers, how to keep the answer, so these are bad employees ...
  7. aszzz888
    aszzz888 22 May 2013 07: 09 New
    0
    Where can we get honest officials so that they do not steal public funds?
    Will they ever be?
    1. yustas
      yustas 22 May 2013 08: 27 New
      +1
      there is a solution to this issue, but it is unlikely when we will accept, though, than God does not joke:
      1. The salary of state managers should be at the level of the average salary of the region where he sits
      2. Tight control of the financial situation of officials and their families.
      3. Introduce public administration universities so that a person who wants to serve for the good of his country knows that he will receive a free education, but first of all he will go to difficult regions, where they will see what he is worth.
      4. A ban on property and accounts abroad for all relatives of a civil servant, including the presence of a business and other things.
      This is only offhand. A person is going to serve his homeland and not for the loot, but precisely because he wants to change and improve something, otherwise I think there will be little sense.
      Well, something like that, comrades.
      1. washi
        washi 22 May 2013 13: 55 New
        0
        not the salary of state managers but the salaries of mayors, local Duma members and governors. These posts are now elective. So let them increase their well-being. Although postscripts will go.
        At the military-industrial complex - see managers. We need normal Stalin directors. Which and salaries and production produced in accordance with state. politics.
        Adopt the law: the largest salary at the enterprise should not exceed the minimum more than 10 times, considering the primaries. The same should apply to elected persons.
      2. Sirocco
        Sirocco 22 May 2013 17: 55 New
        0
        Quote: yustas
        3. Introduce public administration universities so that a person who wants to serve for the good of his country knows that he will receive a free education, but first of all he will go to difficult regions, where they will see what he is worth.

        Recently I came across an ad on TV, I need young specialists at the aircraft factory, tuition at the school and college is free, salaries are 40 tyrov. Employment and other amenities. But. Seeing a friend from this company asked a question about salary. 1. Delay, 2. not what they promised, 3. Operators of machine tools with PU get the promised salary on TV, and then only those who service the 4 machines on which they are "hung up". Machine tools Made in, China, comments are unnecessary. So while there will be no full state control over the plants, this struggle with Windmills will go on ad infinitum.
  8. treskoed
    treskoed 22 May 2013 07: 12 New
    +2
    Probably time to stop catching minnows in this muddy water. You need to see who is at the helm,

    Where is the landing?
    1. washi
      washi 22 May 2013 13: 57 New
      -1
      Where are the announcements? Who offended you?
  9. 120352
    120352 22 May 2013 07: 18 New
    +3
    If a military official steals, he commits a state crime, i.e. crime against the state, which is intended to serve. Judge by the laws of wartime (and his working time is wartime, because at that time he goes in military uniform) and - to the wall! A dozen or two in public to shoot - the rest will be disgraceful! And the time of landings has passed.
    1. washi
      washi 22 May 2013 14: 04 New
      0
      To conduct the Constitution of 1936 and the Criminal Code of the same years.
      Create a separate structure in the FSB to process denunciations of “intelligentsia” against each other (last open run over - live broadcast of GDP - Museum of Western Art
      For anonymous denunciation - punishment.
  10. servant
    servant 22 May 2013 07: 30 New
    +1
    Stalin did so, put things in order and became known as a tyrant ... We already have a * bloody * regime, and what will happen next?
    1. Starlifter
      Starlifter 22 May 2013 08: 02 New
      +1
      We need to fight harder with them, up to life terms. For wrecking.
  11. Was mammoth
    Was mammoth 22 May 2013 08: 12 New
    +1
    Quote: Canep
    I don’t know how in Russia, but at those enterprises in Ekibas where I worked, the question was answered by calculating labor costs and costs for materials (technologists) and the price was set by them (economists) taking into account profit (15-25% depending on greed), and if the customer is interested, he could always get (time required for registration) a detailed calculation of the cost of a particular work. Sometimes the preliminary price was called forward for difficult and (or) urgent work, it fell into the contract, then the final cost was compulsorily calculated, which was drawn up by the estimate and by which the final calculation was made.

    Quote: Phantom Revolution
    You see, the calculation of the cost in state. companies and large firms goes on a different type. A man comes to the seller, comes to the director and says, they say 90 thousand thousand 30 thousand. Are you returning 60 to me, are you satisfied? It's just that these kickbacks are automatically embedded in them.
    Because in the military-industrial complex, a spontaneous increase of 2 times is suspicious, especially when it comes to hundreds of millions.)

    For a long time there are methods of calculating the price. Already with K. Marx. Any university student can make a calculation, but the state husband is not up to date. Well, law enforcement also did not study. It would be possible to restore order. Who only?
  12. Strashila
    Strashila 22 May 2013 08: 51 New
    +1
    If we carefully consider the chain of appointments, who recommended it to whom and when, then we will run into the 90s ... and the valiant team of Yeltsenists working under the strict guidance of the Americans ... Chubais directly and specifically said no reforms ... only the collapse of the economy.
  13. Reserve buildbat
    Reserve buildbat 22 May 2013 09: 11 New
    +3
    Yeah ... It is really time to return the death penalty and confiscation of property for such thieves. Moreover, the confiscation of property not only personal, but also family. So that they knew: if they stole, they would shoot him himself, and leave all his relatives with bare opoy with a wolf ticket. So that only the janitors could work. Here then beware.
  14. AK-47
    AK-47 22 May 2013 09: 50 New
    +1
    ... as a rule, there is no system pricing at the enterprise.

    This is the reason for fishing in troubled waters.
    The introduction of system pricing in the defense industry will help to remove part of the problem.
  15. FC SKIF
    FC SKIF 22 May 2013 10: 15 New
    +1
    The defense industry is generally a retractable structure and one must keep an eye on it. I hope that the “effective managers” will be taken away from there, and even better, they will be sent to prison. For many, the military unit is a place where you can easily get salary, diesel generators, decommissioned military equipment at bargain prices, etc. This is all the level of ensign or a little higher, and we are only now being told what is happening in the upper echelons of the army.
  16. Begemot
    Begemot 22 May 2013 10: 39 New
    +1
    Most of the defense is privatized. The directorate gets up on them so that you never cease to be surprised. We have a “successful” defense enterprise, in it all the buildings and workshops belong to the children of the leadership and are leased to defense industries. That is, in addition to 2500% of overhead costs for products, the price also includes rent, which can be set at will. At one time, the former director Izhmash Grodetsky worked on a similar scheme, only he was “less fortunate", planted (while in a pre-trial detention center), and the plant was less advanced and in demand.
  17. Semyon Albertovich
    Semyon Albertovich 22 May 2013 10: 39 New
    +1
    Corruption of defense industry officials undermines the national security of Russia and the punishments for them should be much stricter. A lesson should be learned from Serdyukovsky tyranny - never one person should make decisions in a matter of which he does not understand. Serdyukov must bear strict responsibility for organizing systemic theft in the Army and the defense industry.
  18. knn54
    knn54 22 May 2013 12: 58 New
    0
    In a country where corruption is everywhere and everything is falling apart, to expect that this is not in the army is absurd!
    Many people remember the scandals with property taken out of the GDR (Western Group of Forces) in the early 90's.
    And the USSR Ministry of Defense was the FIRST ministry, which appeared LUXURY foreign cars.
    Everything that is happening now in the Russian Federation resembles the USSR of the late 20s-early 30s: total corruption, the degradation of the army, the collapse of the economy, the decline of morals ...
    But as the President said, now is not 37 years old.
    Theft in service is a betrayal of the motherland. And only in this way.
    1. washi
      washi 22 May 2013 14: 13 New
      0
      But as the President said, now is not 37 years old.
      this statement can be interpreted in different ways
      we are not planting anyone and are waiting without the application of legislation
      We know that a coup is being prepared, but the main ones have already been withdrawn.
      We look forward to bringing the legislation to the necessary standards.