Audit Finds Violations In Use Of Kazakhstan’s National Fund Money

Serious violations were uncovered in the use of National Fund money in Kazakhstan, Orda.kz reports.

This was announced following a meeting of the Monitoring Commission held at the Supreme Audit Chamber under the chairmanship of Alikhan Smailov.

The commission reviewed the results of an audit of more than 3000 projects worth over 3.4 trln tenge, as well as bond loans to the quasi-government sector worth another 3.8 trln tenge. Overall, the projects had an effect, but the audit revealed serious problems.

One of the key factors was the absence of a single state body responsible for achieving all the goals and objectives assigned to the National Fund. At present, these functions are divided between the Ministry of National Economy, the Ministry of Finance and the National Bank. At the same time, there is no centralised accumulation and analysis of full information on business processes. The level of transparency in reporting remains insufficient

The audit showed that some projects were launched without proper preparation — without documentation and even without land plots. Because of this, deadlines were delayed, and more than 500 projects worth 394 bln tenge were excluded or replaced while already under way.

The commission also found that National Fund money was in some cases directed to local-level projects, such as village improvement or small social facilities, which could have been financed without these funds.

In some cases, National Fund money was allocated to projects that had already been completed or in amounts exceeding the actual need. the chamber said. 

The audit also revealed cases of misuse. Funds intended for rural healthcare were spent on urban facilities, while equipment purchases in a number of regions exceeded the plan almost twofold because of inflated prices.

Following the inspection of a number of episodes, criminal cases have already been opened, the statement added. Recommendations were sent to state bodies and quasi-state companies, including the return of 64 bln tenge that had been misused.

The Supreme Audit Chamber also proposed tightening the requirements for project selection and ensuring full transparency in the movement of National Fund money to the final recipient.

Original author: Saule Abdykamit

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