Oversight of procurement processes for quasi-state companies has been strengthened in Kazakhstan, as reported by the business information center Kapital.kz, citing the press service of the Supreme Audit Chamber.
"The Ministry of Finance of the Republic of Kazakhstan has been granted the authority to consider cases of administrative offenses committed by entities in the quasi-state sector during the procurement of goods, works, and services. Amendments to the legislation were made based on the recommendations of the Supreme Audit Chamber," the Chamber stated.
Previously, as clarified by the Chamber, the lack of a relevant provision in the Code of Administrative Offenses prevented the imposition of administrative liability on quasi-state sector entities for violations committed.
"To eliminate the legislative conflict, it was recommended that the Government of the Republic of Kazakhstan make changes and additions to the Administrative Offenses Code. Specifically, to assign the Ministry of Finance the authority to consider cases of administrative offenses related to the procurement of goods, works, and services (under Article 207-1 of the Administrative Offenses Code) committed by entities in the quasi-state sector. Amendments were made on January 10, 2025, to the first part of Article 722 of the Code of the Republic of Kazakhstan 'On Administrative Offenses.' As a result, the Ministry of Finance gains the ability to respond promptly to violations in the procurement of quasi-state companies and hold accountable based on the outcomes of its investigations," noted the Supreme Audit Chamber.
The agency believes that the awareness of the risk of administrative liability for violations of procurement rules will encourage entities in the quasi-state sector to adhere more closely to regulations, thereby enhancing overall procurement discipline. Additionally, the analysis of identified violations will enable the Ministry of Finance to uncover systemic issues and make changes to the regulatory framework to further improve procurement processes.
Recall that on February 1, 2022, during a meeting on anti-corruption measures, President Kassym-Jomart Tokayev instructed a review of the entire system of public procurement and procurement in the quasi-state sector.
It was previously reported that Kazakhstan will implement a new approach to consolidated budget reporting. Specifically, the following changes will be introduced: accounting for the depreciation of roads using recommended useful life periods; reflecting loans received in accordance with international standards: first at fair value, then at amortized cost; reflecting financial investments in quasi-state sector entities made through equity participation; reassessing the value of residential buildings listed at zero cost using the calculation method from the Tax Code for taxing individuals' property; including a requirement for separate accounting of structures, including roads and the land on which they are located.