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Gani Kasymov: "We must address systemic problems of business"

- Zhambyl Region
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The work of legal departments of Regional Chambers should focus not only on problems that are relevant for individual businessmen, but for a large number of business entities

This was stated by the Chairman of the Council for the Protection of the rights of entrepreneurs of NCE RK "Atameken" Gani Kasymov at a joint meeting of the Council for the protection of the rights of entrepreneurs of NCE RK "Atameken" and the Council for the protection of the rights of entrepreneurs of the Chamber of Entrepreneurs of Zhambyl region.

The Board meeting, which was held in Taraz, was attended by the Commissioner for the Protection of the Rights of Entrepreneurs of Kazakhstan Bolat Palymbetov.

Opening the meeting, Gani Kasymov said that all considered issues are of systemic nature. For example, the issue related to the practice of application of the Rules of subsidizing the of bus passenger transport in the regions for 2014-2015, is faced by all transportation organization of Kazakhstan.

As it was explained by the director of the department of legal protection of entrepreneurs NCE RK "Atameken" Oleg Savelenko, the National Chamber of Entrepreneurs of Kazakhstan sent instructions to regional chambers to conduct public monitoring of the practice of provision of subsidies for bus passenger transport. The monitoring revealed a number of problems, one of which is the lack of compensation for losses of carriers.

"This problem exists in all regions of the country, - he said. - At present, the matter was positively considered only in the city of Almaty".

At the territory of Zhambyl region were recorded 28 transport companies, engaged in transportation of passengers and luggage. Subsidizing of socially important bus routes of the region is applied only to three routes: Shu-Moyynkum-Akbakai, Taraz-Chiganak and Zhanatas-Zhaylaukol. Local executive bodies don’t subsidize transportation of passengers at the regional center (Taraz).

At the same time the decision of akimat of Taraz identifies certain categories of citizens who are entitled to preferential and free travel on public transport, but it does not identify the source of funding and no contract was concluded with the passenger transportation carrier. That is, in fact, Zhambyl passenger transportation companies bear losses.

Earlier, the Council for the Protection of the rights of entrepreneurs of RCE initiated the establishment of a working group, composed of representatives of local executive authorities, RCE, the participants of the Afghan war and other public organizations to resolve the matter. As a result of chronometry research, it was established that to cover the costs, which were incurred by the carriers, it is necessary to increase the tariff with compensation for rides of preferential categories of citizens with the right to free travel, except for war veterans without equated to them, disabled groups of 1 and 2 due to eye vision impairment. This statement is under consideration of akim of Zhambyl oblast with the recommendation to the Akimat of the city of Taraz to deduct the funds for the payment of subsidies to the budget for the transport of certain categories of citizens.

As it was explained by the head of the Department on housing, public transport and roads under Akimat of Taraz Bakhytzhan Zhaksylykov, at the next session of Maslikhat will be considered the issue of allocation of 40 million tenge of budgetary funds necessary to subsidize the losses of entrepreneurs.

Deputy director of the Chamber of Entrepreneurs of Zhambyl region Kairat Sydykov spoke about problems in relations between business and state bodies in Zhambyl region.

In particular, the director of LLP "Tіlebay Baba" Arstan Tlebayev addressed to RCE of Zhambyl region. According to him, in May of this year, the Finance Department of Akimat in Merke district held a tender on transfer in trust management of the property complex "Zhuldyz". LLP "Tіlebay Baba" was recognized as the winner of the tender. The founder of the trust management approved the protocol on the same day, however, the founder evaded signing of the Trust Deed within the established time period. And after 11 days, the head of the Department of Finance in Merke district akimat cancelled the protocol on the results of the tender. And he made a reference to previously issued protest of the prosecutor in Merke district, in which were indicated irregularities during the assessment of the property complex. However, the protest, which, incidentally, has a recommendation, doesn’t raise the issue of banning the signing of the contract on trust management.

After examining the grounds for cancellation of the results of the tender, and all the documents of the case, the experts of the Chamber came to the conclusion that officials of akimat of Merke district exceeded the law and violated the requirements contained in the legislation. As a result of illegal actions the rights and lawful interests of business entity were harmed.

"Regarding this matter, RCE sent a letter to the prosecutor’s office of the Merken district and the Department of the National Bureau of Anti-Corruption in Zhambyl region with a request to  carry out inspections on excess abuse of power by officials of district Akimat. In parallel, RCE has prepared a draft statement of claim to be submitted to the court, - said Kairat Sydykov. – In its turn, the prosecutor's office in Merken district send a request to the Council on Ethics of civil servants to consider bringing to disciplinary proceedings the guilty civil servants, in parallel the Department of the National Bureau of Anti-Corruption in Zhambyl region designated an inspection with participation of the Department of financial control of Zhambyl region to verify the legality of the cpnducted tender".

After hearing the arguments of the representative of akimat of Merken district and regional prosecutor's office, Gani Kasymov proposed not to be quick with conclusions.

"In this case it will be necessary to meet separately and to decide - he said. - This is the question of when you need to measure seven times before you cut it once".

Another issue has been the focus of the discussion - an appeal of the individual entrepreneurs "Karymsakov A.T.". The entrepreneur Arman Karymsakov addressed to RCE  with a request to assist in returning of money in the amount of 89 thousand tenge. He said that last September he was declared the winner of an electronic auction for the sale of the property complex "Football Club" Lashyn", which belonged to the Department of physical culture and sports of Akimat of Zhambyl region. Then he concluded the sales contract with the Finance Department of Akimat of Zhambyl region. And only later he saw then in the act of receipt and transfer of the property complex the outstanding debt of the club "Lashyn" in the amount of 16 million tenge. That is, the Department of physical culture and sports was aware of the debt, but not informed the businessman.

"Thus, the seller and the asset holder violated one of the principles of privatization, which is the authenticity of the data about the objects", - said Kairat Sydykov.

The Chamber of Entrepreneurs filed a claim with a request to annul the results of the electronic auction and to return 89 thousand tenge. By the decision of the specialized inter-district economic court of Zhambyl region the claim has been satisfied.

Since the beginning of 2016 the Chamber of Entrepreneurs of Zhambyl region received 89 complaints on legal issues. Most complaints (15) were on the subject of land relations. The major part of appeals come from the districts of the region and the most urgent problem of the villagers – is incomplete payment of subsidies for the development of livestock breeding for 2015.

Heads of farms, who didn’t receive subsidies in 2015, addressed to the Chamber of entrepreneurs. For example, the head of the farm "Abdir" Nurzhan Myltykbaev from Talas District, engaged in the development of livestock breeding in the last two years instead of the standard 18 000 tenge for each breeding stock of cattle received 13 000 tenge. Similarly, over the past year the farm "Zhafar" from Baizak district short received 670,319 tenge, the farm "Mukagali" from T. Ryskulov district - 600 000 tenge, the farm "Bai-Aru” - 575 000 tenge. Individual entrepreneur Dukenbaeva Balgul received only 70% of subsidies for each breeding stock and the authorities completely refused to pay her for the acquisition of the domestic cattle breeding.

The order of the Ministry of Agriculture of the Republic of Kazakhstan "About approval of Rules of subsidizing the development of livestock breeding, increasing productivity and product quality" determines the development of livestock breeding as a priority direction of the subsidy. And in the event of a shortfall, the relevant Commission makes a proposal for the redistribution of the remaining funds from lower priority areas to higher priority. These Regulations also stipulate the order of provision of subsidies for selection and breeding work with breeding stock of cattle at the expense of the National Fund of the Republic of Kazakhstan.

"The Chamber of entrepreneurs, examining regulations, governing the payment of subsidies, sent appeals to the prosecutor’s office of Zhambyl region for the organization of inspection of the Department of agricultural under akimat of Zhambyl region", - said Kairat Sydykov.

As a result of the inspection the prosecutor's office send to the head of the Department of agriculture an order to repay the remaining balance of subsidies to the abovementioned farmers, as well as addressing the issue of disciplinary responsibility of the guilty officials who have violated the law. As a result, 357 farms received the remaining balance of subsidies for 2015 in the amount of 138 253 017 tenge, and the person in charge was brought to disciplinary responsibility.

However, this result can’t be called a solution. Nurzhan Nurzhigitov, the head of the department of agriculture under Akimat of Zhambyl region, announced alarming data: "For example, the shortage of subsidies for livestock breeding in 2014 amounted to 329 million tenge, in 2015 - more than 800 million tenge, this year we expect about two billion tenge shortage". According to him, the program of subsidizing has more participants each year, and therefore a need for funds grows. The solution is allocation of additional financial resources. The Ministry of Agriculture is aware of the problem, and it considers now the allocation of additional funds.

Another aspect of the problem was also raised - according to the Rules of provision of subsidies in the coming year, only the debts for the fourth quarter of the previous year can be paid this year, that is not entirely the whole amount for the previous year.

"Farms do not have to understand all this regulations, and so on. They should give us products - milk, meat. Rules need to be supplemented, modified. People believe, the state supports, they borrow, climb into debt, and then find out that there are no subsidies. We need to keep this issue under control, it will be necessary for him to return once again", - summed Gani Kasymov.

The Chairman of the Council for the protection of the rights of entrepreneurs of NCE RK G. Kasymov said that prompt measures will be taken to address each voiced problem during the Council and the prosecutor’s office will visit with inspections all the objects, bringing to justice guilty officials.


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