Auditors Reveal How Officials Diverted Tens of Billions of Tenge in Kostanay Region

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Six out of eight investment projects worth 188 billion tenge were not launched in Kostanay region, Orda.kz reports.

The auditors checked the use of budget funds and concluded that the management and planning system in the region is failing. Thus, budget revenues from 2020 to 2024 increased by 75%, but the share of own revenues rose only from 29% to 36.1%. At the same time, the region took out 30 billion tenge in loans despite having 19 billion tenge in unused funds.

State support for business also showed weak results. 352 companies received assistance worth 11 billion tenge, but 179 of them closed, and another 168 did not create the promised jobs.

Auditors identified signs of hidden subsidization of sustainable private companies, which may distort competition.

Problems were also found in infrastructure. Defects were discovered at 12 road facilities, including sections that had already been repaired.

In the construction of medical facilities, an overestimation of equipment costs by about 200 million tenge was revealed. Individual items were purchased at prices 18–46 times lower than indicated in the estimates. Prices were determined based on price lists from a bankrupt company.

Violations worth 12 billion tenge were uncovered in public procurement. In particular, unsuitable participants were allowed to take part in tenders, and purchases were made from a single source under the pretext of an emergency.

The total amount of financial violations reached 51 billion tenge. Materials on 52 episodes have been transferred to initiate administrative cases.the Supreme Audit Chamber reported.

Original author: Ruslan Loginov

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