Business Ombudsman and the Council for the Protection of Entrepreneurs: how to address the acute legal issues of the Zhambyl business

In 2013, the Council for the Protection of the Rights of Entrepreneurs was created under the Chamber of Entrepreneurs, and since last year, with the entry into force of the Entrepreneurial Code, the institution of the Commissioner for the Protection of the Rights of Entrepreneurs of Kazakhstan was introduced. The head of state appointed Bolat Palymbetov to this postion.

 Acting in all areas of our region, as well as in the city of Shu, the branches of the Chamber of Entrepreneurs of the Zhambyl region allow businessmen of each aul, village and small town to deliver their appeals, if necessary, both to the regional and republican levels.

"In 2016, the legal block of the Regional Chamber of Entrepreneurs received 182 applications from businessmen on legal protection issues. Representatives of the Chamber actively defend business entities in court. During the past period, with the participation of representatives of RCE, 22 trials were held, of which 80% were decided in favor of entrepreneurs for a total of 38.7 million KZT”, - said Deputy Director for Legal Affairs Kayrat Sydykov.

Last year, five meetings of the Council for the Protection of the Rights of Entrepreneurs were held. Since the beginning of this year two meeting were held. 15 problematic issues were resolved, 7 were positively solved, 5 more are pending, and 3 were not satisfied. At the same time, most of the questions are of a systemic nature.

Perhaps, the loudest in the past year was the case of pseudo-entrepreneurship. Then the collective appeal of businessmen engaged in the sale of fuels and lubricants, which involuntarily became counterparts of a pseudo-enterprise, was considered. Bona fide entrepreneurs were notified by state revenue bodies on the need to pay additional taxes in the amount of 230 million KZT, not to mention CPN. At the initiative of the Chamber of Entrepreneurs of the region, after consideration of the issue at the Council for the Protection of the Rights of Entrepreneurs, an application was submitted to the General Prosecutor's Office of the Republic of Kazakhstan. It was approved. It was Bolat Palymbetov who facilitated the positive resolution of this issue. As a result, the Prosecutor General's Office issued a protest against the verdict of the court, which was considered by the Supreme Court of the Republic of Kazakhstan and, as a result, the verdict of the court was abolished.

 Another acute issue after consideration at the Council and assistance of the Business Ombudsman was resolved in favor of the entrepreneur - director of LLP “Piko” Anatoly Pak. Akimat of Taraz gave the company a land plot for the construction of pavilions for a period of one year. When the pavilions of light structures were erected, on which the entrepreneur spent about 28 million tenge, the akimat did not grant permission for the maintenance of the pavilions, that is, did not extend the lease, although the businessman had positive land commission opinions. To date, with the assistance and legal support of the Regional Chamber, LLP "Piko" has achieved in court the decision to compel the local executive body to extend the lease.

"I can give some more concrete examples. More than 100 illegal inspections were canceled by RCE jointly with the regional prosecutor's office based on the results of the audit of the application of the legislation on state control and supervision when forming the schedule for inspections under a special order. The case on health resorts had a big resonance. The notification of the tax bodies on mining operations within the framework of innovations to the Tax Code put on the brink of bankruptcy health resorts and other social facilities of Zhambyl region, taxes were calculated in millions of tenge for the extraction of groundwater. After consideration at the Council, we appealed to the National Chamber of Entrepreneurs. The problem was solved by initiating the introduction of appropriate changes to the current legislation", - continued Kairat Sydykov.

Other systemic problems were decided during the year. A positive result was achieved in the appeals of peasant farms on the incomplete payment of the amount of subsidies for the development of pedigree livestock with SE "The Department of Agriculture of Akimat of Zhambyl region". Based on the results of the inspection, the prosecutor's office of the region addressed the head of the Administration an order, as a consequence of it the subsidies were paid in the amount of 224 million KZT.

An acute problem issue was raised by Katsa LLP. It turned out that the contracting organizations in the performance of works on the average repair of roads are faced with a lack of technical documentation, namely because of the lack of them in the section "Environmental Impact Assessment" and lack of environmental expertise, without which the Department of Nature Management of the Akimat of the region does not issue an emission permit. As a result, a systemic problem has arisen, which caused expenditures of about 9.5 million KZT for 52 objects for a total of 2.8 billion KZT. The petition sent to the prosecutor's office of the region gave results – an order was issued to the akim of the region on the prevention of such violations from now on.

Other issues were resolved in favor of businessmen, for example, the rights of entrepreneur Arman Karymsakov, who acquired through the auction the property complex of SE "Football Club" Lashin" with debts of 16 million KZT, which were hidden from him before the bidding. LLP "Lombard" Sardonyx" thanks to the help of the Chamber. It did not have to incur additional expenses for organizing night illumination of advertising of the facility, which was demanded by the local executive body.