A number of obstacles, which hinder operations and business development, will be the subject of special scrutiny at the governmental level

Fiscal pressure, imbalance in the rules of public procurement, affects the interests of bona fide suppliers, the high cost and lack of access to loans, the need to review some of the state support programs for SMEs - these and other problematic issues have become one of the most important at today's meeting at the Government of Kazakhstan. The Chairman of NCE RK "Atameken" Ablay Myrzakhmetov touched many acute topics in his speech. So, by the order of the Government in each region of Kazakhstan was established a working committee to support domestic producers in public procurement and procurement conducted by a group of companies of JSC "National Welfare Fund" Samruk-Kazyna". According to "Atameken", working committees began to more more effectively in Akmola, Atyrau, Zhambyl, Almaty regions. Akimats of Almaty and East Kazakhstan demonstrate the highest activity, where the amount of concluded contracts with domestic producers has reached, respectively, 41 billion and 30 billion tenge. And in EKR the working committee also execute after bidding control on major construction projects with the involvement of Gask. At the same time Ablay Myrzahkmetov pointed to a weak job of the West Kazakhstan region, "because on the basis of the results there are no agreements concluded within the framework of the working committees".

Critical mass has accumulated in the area of ​​procurement. "A systemic problem in the ongoing procurement - is the problem of the acquisition of components and equipment by general contractors, at its discretion, giving preference to foreign manufacturers. This is the case in all areas of procurement", - said Ablay Myrzakhmetov.

For example, in Taraz on the project "Reconstruction of M-5, on the street. Rakhimov - Zhubanysheva was planned the purchase of equipment of domestic production of not more than 450 million tenge. At the specified projects, a number of manufacturers - LLP "Bemer Fittings", Ust-Kamenogorsk Fittings Plant, Ust-Kamenogorsk plant of industrial fittings can’t find common ground with the general contractor for the use of equipment. LLP “Nimkaz Trade” got priority in this project, which has supplied the goods, though, "according to information of NCE RK "Atameken" the company is not listed in the register of domestic manufacturers". A group of domestic enterprises-producers could supply the products below the net cost to Almaty, the city in which the reconstruction of Thermal Power Plant - 2 is going on. However, the general contractor of the strategically important project for some reason ignores the clear opportunity to support local producers, "giving priority to equipment not provided for the modernization of thermal power plant-2". "In connection with this offer to exercise large scale control over the execution of the provisions on the share of local content by general contractors", - said Ablay Myrzakhmetov.

Change is necessary and in the procurement of pharmaceutical products. Speaking of which, the head of the Board of NCE noted that "the question of review of prepayment mechanism is still open". "Until now, payment to suppliers for the delivered goods is made within 90 banking days without payment, which is more than 4 months", - he stated.

Tender participants are worried about the rate, entitling LLP "SK-Pharmacy" at any time to return the purchased product to supplier in the amount of more than 25% of the purchase volume due to poor planning of the need in medications.

"The draft of the new rules of procurement of medicines of the Ministry of Health and Social Development of Kazakhstan stiil contains the provision, which allows to change the volume and the prices of products in the contract at any stage of supply of goods. This practice is not applied in any industry and the system of public procurement", - added Ablay Myrzakhmetov.

In addition, the lack of advance payments leads to financial losses for businesses, reducing their profitability and competitiveness. Therefore, "Atameken" considers that it is necessary for the Ministry, NCE together with other interested state bodies to work on a solution of these problems. There are many examples of successful and efficient tandem of the Government and NCE "Atameken" in the protection of interests of domestic business. "Thanks to your support, Bakhytzhan Abdirovich (Sagintayev - Prime Minister of Kazakhstan), NCE together with the Ministry of Investment and Development of the Republic of Kazakhstan and industry associations could protect the rights of entrepreneurs of the pharmaceutical industry and maintain more than 2,000 jobs and 7 billion tenge as a result of the peace settlement of litigation between LLP "SK-Pharmacy" and suppliers of medicines and medical products", - said Ablay Myrzakhmetov.

The issue of an industrial certificate remains open question in the current legislation. Ablay Myrzakhmetov stressed that "state agencies have conceptually supported the idea of ​​an industrial certificate", but, nevertheless, the issue of the implementation of public procurement "remains unresolved for various reasons, including bureaucracy." In addition, the ministries disagreed on the rules of the transition to an industrial certificate. "The Ministry of National Economy believes that because Kazakhstan is a new participant in the WTO, the republic is under scrutiny the other WTO members, and the introduction of a certificate for the industrial businesses is undesirable. The Ministry for Investment and Development of Kazakhstan supports the position that industrial certification should be implemented exclusively in the quasi-public sector, without implementing it in public procurement ", - specified the Chairman of the Board of NCE, appealing to the Government for "assistance in resolution of these issues at the legislative level".

The work of the fiscal authorities is subject to large criticism on the part of business. In the 1st half of 2016 compared with the 1st half of 2015, the number of unscheduled tax inspections has increased, the increase was 16%.

"Unfortunately, our analysis showed that of the total mass of economic crimes, only 20% of cases reach the courts, and in 80% of cases, it turns out, an entrepreneur has been repressed – arrest of bank, etc." - said Ablay Myrzakhmetov.

Therefore, NCE "Atameken" has once again suggested to the Government "to increase civil servants' responsibility for illegal interference in entrepreneurial activity" that would serve as a "deterrent." As an example Ablay Myrzakhmetov cited results of an inspection in the company "East-milk" of EKR. "The tax officials counted more than 13 million tenge of tax claims, during proceedings it turned out that tax arrears amounted to only 2 million tenge. Can you imagine that have experienced managers of large enterprises", - stated the Chairman of NCE RK "Atameken".

Financing of SMEs is still insufficient. In this regard, NCE "Atameken" proposed to introduce a floating rate of subsidy for the participants of the "Roadmap of business-2020". "Today we set the rate of 19%, it is not flexible, and request to consider the revival of the stock market, subsidizing the coupon interest, state bodies have an understanding in this matter. Now we ask Mazhilis to support this work", - said Ablay Myrzakhmetov.

In addition, "Atameken" proposed to revise the parameters for evaluating the effectiveness of projects to be implemented on the basis of "Roadmap of business-2020". "In difficult economic conditions, the entrepreneur must provide a tax increase, employment growth, the growth of production. We believe that under current conditions it is not easy, and one of these parameters would be assessment of the effectiveness of a project", - suggested Ablay Myrzakhmetov. In addition, NCE "Atameken" also proposed to return to the program of business support and improvement. Speaking of which, Ablay Myrzakhmetov stressed that considers the current direction, because of the state of big business depends on the successful operation of SMEs, which are often engaged in service or contract work for large enterprises",

In turn, the Government of Kazakhstan agree with the named problems. "In fact Ablay Isabekovich raised a big layer of questions. All of them need to be addressed", - said the Prime Minister Bakhytzhan Sagintayev.

In this regard, the Head of Government commissioned to conduct an audit of state programs aimed at business support. "If to reform and to rebuild, then we can find a lot of money inside, and direct it additionally on lending to domestic businesses", - said Bakhytzhan Sagintayev.

First Deputy Prime Minister Askar Mamin instructed "to carry out additional measures". Bakytzhan Sagintayev also added that "in two weeks we will be back on the execution of each item and draw up an action plan, and then we will check it".

In addition, the Prime Minister of Kazakhstan noted that the statistics cited by the leadership of "Atameken", is more reliable compared with information from state agencies.

"Kuandik Valikhanovich (Bishimbayev – the Minister of National Economy), as for industrial zones, Ablay Isabekovich said here, you data mismatches. Of course, here I believe more to "Atameken", because the business does not need to embellish, they say as it is. But we believe more to the figures that we are given by our colleagues from the regions and ministries", - said Bakhytzhan Sagintayev.

In closing the discussion, the Prime Minister stressed that it is important not only to maintain the development of business, but also to calculate the impact in the form of taxes, jobs created, the volume of production. "Especially when the prices of our commodities fall", - summed Bakhytzhan Sagintayev.

Zhanar Serdalina