The Supreme Audit Chamber has identified violations amounting to 5.3 billion tenge in the management of public debt in the Karaganda region, as reported by the business information center Kapital.kz, citing the press service of the SAC.
At the request of the Supreme Audit Chamber of the Republic of Kazakhstan, an audit commission conducted an assessment of the effectiveness of debt management by local executive bodies (LEBs) and certain entities in the quasi-public sector in the Karaganda region. The audit covered the Department of Finance of Karaganda region, the Department of Economy, the Department of Energy and Housing and Communal Services, LLP “Karaganda Su”, LLP “Teplotransit Karaganda”, LLP “Center for Modernization of Housing Fund”, JSC “Football Club Shakhtar”, and the Department of Housing and Communal Services, Passenger Transport, and Roads of Karaganda.
“As a result, it was found that over the past five years, the debt of local executive bodies has increased by 2.2 times, while servicing costs have risen by 1.5 times. Specifically, during the coronavirus pandemic, there was a large issuance of government securities and a failure to adhere to the debt limit for LEBs in 2020, exceeding it by 3.8 billion tenge. Currently, the overall debt burden is assessed as manageable. However, despite the favorable debt dynamics at present, the peak burden on the budget for its repayment is projected for 2031, amounting to 21.7 billion tenge across 20 contracts. Overall, as of January 1, 2024, 60.4% of the total principal debt is due to be repaid between 2030 and 2043. Auditors also noted a formal approach by state bodies at the regional level to monitoring external and internal loans of quasi-public sector entities,” the SAC's information states.
Thus, against the backdrop of overall unprofitability, LLP “Teplotransit Karaganda” is facing increased losses that heighten the risk of failing to meet obligations under credit agreements.
Instances of distributing net profit in favor of participants in LLP “Karaganda Su” and borrowing budget loans while simultaneously placing free cash on bank deposits have been identified.
Ineffective management of financial resources at JSC FC “Shakhtar” has led to a year-on-year increase in accounts payable, including wages, taxes, and other mandatory payments.
“In total, the audit revealed that the overall amount of identified violations of the legislation of the Republic of Kazakhstan amounted to nearly 5.3 billion tenge,” the SAC reported.
The audit commission has provided necessary recommendations to the audited entities and issued directives to rectify these violations.
It should be noted that earlier reports indicated serious violations during the state audit of the Social Health Insurance Fund (SHIF), which could result in a loss of 34 billion tenge.
“The audit included a verification of data from the Unified Payment System across two categories: 'Paid Services' and 'Payment from SHIF and GOBMP'. It was established that the same individuals received services both through paid services and from GOBMP and SHIF funds, totaling 4.2 billion tenge,” said SAC member Nurlan Nurzhanov during a government hour in the Mazhilis.
He added that co-executors of medical services failed to provide documentary evidence for approximately 56 million medical services amounting to 28 billion tenge.
“This is due to the lack of an integrated and transparent information system,” the speaker noted.