SAC Audit Reveals 140 Billion Tenge in Violations in North Kazakhstan Region

An audit of the North Kazakhstan region’s budget and state assets has been completed, Orda.kz reports.

The Supreme Audit Chamber (SAC) presented its findings, noting improvements on paper — but also large-scale financial mismanagement.

Over five years, the gross regional product has grown by 69%, unemployment and poverty have decreased, and 600,000 square meters of housing have been built,
  stated the chamber.

Despite this, auditors identified violations totaling 140 billion tenge.

Key Shortcomings Identified

Demographics continue to worsen — natural population growth is falling, and out-migration remains high.

Education issues persist.

Some schools:

• Operate in three shifts
• Are classified as  unsafe buildings
• Lack gyms and sufficient classroom space

Healthcare infrastructure is deteriorating as well — hospital and clinic wear-and-tear has reached 74%.

Meanwhile, although SME numbers have increased, their economic contribution is falling. Alikhan Smailov, Chair of the Supreme Audit Chamber, highlighted a sharp drop in retail revenue — 100 billion tenge:

It turns out that the region's tax potential for trade has declined. Consequently, fewer taxes have been paid, and the local budget has less capacity to finance social infrastructure development projects and other projects. We've seen this and believe it's, to put it mildly, unsound. It's possible the shadow economy has expanded. This needs to be addressed,
 Smailov told regional akim Gauez Nurmukhambetov.

Nearly 40 villages still lack a quality water supply.

The chamber also noted inefficient budget allocation:

• 7 billion tenge was spent renovating the akimat building
• Another 7 billion was allocated to the construction of a new theater

Underutilized Sectors

The Qyzyljar socio-economic zone remains neglected, despite its strategic importance to the region. Due to the lack of utility infrastructure, some SEZ facilities have not been commissioned on time, which is undermining investor confidence, the SAC said.

The creation of joint ventures did not produce results and led to losses of approximately one billion tenge of state resources.

In total:

• 28.3 billion tenge in financial violations
  
• 112 billion tenge in inefficient spending

Officials responsible are expected to face accountability measures.

Original Author: Zarina Fayzulina