НOn the platform of the National Chamber a regular meeting of the Council for the Protection of Entrepreneurs Rights and Counteracting Corruption of the NCE RK "Atameken" took place on the issues of contractual relations of entrepreneurs with partners, contractors and clients.

The murder of businessman Yevgeny Molibogin from Almaty, who was brutally tortured in the basement of an abandoned dacha is still on everyone's lips, as well as the suicide of the capital businessman Mayor Avazov because of the seizure of land and loss of business.Why do accidents occur, why does the business incur losses when dealing with partners and the state?

Why do accidents occur, why does the business incur losses when dealing with partners and the state? Why are obligations not being fulfilled and this leads to bankruptcy of firms? This year 3 146 enterprises turned bankrupt, which is 50% more than in the past year.

"20% of all appeals to the National Chamber fall on disputes over contractual relations. Experts note the annual growth of offenses. The greatest number is accounted for by disputes under transportation contracts, they increased six-fold," - the chairman of the Council for Counteracting Corruption and the Shadow Economy of the NCE RK "Atameken" Kairbek Suleimenov opened the meeting.

Also entrepreneurs complain very often about non-fulfillment of partners' obligations when delivering goods.

"All this causes damage not only to entrepreneurs, but also to the state as a result of inadequate taxes and other mandatory payments to the budget due to losses caused by non-fulfillment of the terms of contracts. This means that the obligations of the participants of civil traffic need support both from the state, and from various Unions, Business Associations and other NGOs. But at the same time certain spheres of economic relations have insufficient legal regulation, existing norms do not apply," - Council Secretary Batyrzhan Ashitov said.

International experience has shown that an entrepreneur should be able to protect himself from risks. For example, foreign practice is built on the introduction of strict corporate governance.

The deputy of the Majilis of the Parliament of the Republic of Kazakhstan Pavel Kazantsev in his turn noted that legal nihilism is clearly expressed in the country.

"Business does not want and does not know how to take care of its business. Entrepreneurs are not aware of mediation, the Сharter and the Code of "Atameken". You have to understand clearly what you're on before you sign a contract. We need reminders to deliver educational program to the masses, and they should lay in each bank to tell about the risks and mechanisms of the state, which the business knows bad," - Pavel Kazantsev said.

Representative of the Ministry of Internal Affairs of the Republic of Kazakhstan Kairat Nurmagambetov noted that from the beginning of 2018 19 278 facts of fraud against entrepreneurs for the amount of 4 billion tenge were registered. He suggested carefully studying the resumes of counterparties.

"Unfortunately, today the common practice is signing contracts "blindfold". One found a company without talking on the phone, signed an agreement via the Internet, and received no guarantees," - Kairat Nurmagambetov said.

To resolve disputes, it is necessary to include mutual assurances about the circumstances to the contracts. When making major transactions, for example, when buying an enterprise, the seller is advised to give assurances regarding the proper conduct of financial statements, the existing assets of this company. Also it is necessary to prescribe the consequences of the unreliability of the assurances given by the seller.

"Often entrepreneurs turn to the National Chamber with problems in the sphere of renting property. Administrative pressure encourages businesses to go for manipulation to overcome barriers, which negatively affects the entrepreneurial initiative. It is necessary to systematize the legal regulation of lease relations, make additions to Chapter 29 of the Civil Code of the Republic of Kazakhstan," - Batyrzhan Ashitov said.

Rustam Zhursunov, Deputy Chairman of the Board of the NCE RK "Atameken", noted that in the recently there is a large number of disputes on the issues of land acquisition. They arise due to the violation of the procedure for the issuance of plots by the state authorities. According to the estimates of the NCE, the number of disputes fluctuates around 2,593 cases in the republic, and there are more than 400 only in the Akmola region. Many akimats neglect the norms of the land code, which states that land can be obtained through an auction.

"For 3-4 years, entrepreneurs have mastered the plots, invested funds and received land through the PSC on the principle of a single window. It is unknown how the akimat worked further. The tension is increasing," - Rustam Zhursunov stressed. 

The judge of the Supreme Court of the Republic of Kazakhstan Akyltai Kassimov drew attention to the enslaving nature of "standard" contracts and "agreement of accession", the provisions of which put extremely unfavorable conditions for entrepreneurs, giving banks resources for unjust enrichment. Rustam Zhursunov said that next week a special contract bank will be launched, which includes more than 500 documents. Representatives of small and medium-sized businesses will be able to download any of them for free and make an individual contract for their own purposes.

In 2018, the Congress of the National Chamber approved the Code of Ethics and Business Conduct of Entrepreneurs of Kazakhstan, containing the basic principles and standards of business conduct. Quasi-public sector will begin introducing a corporate governance system. The state also needs to stimulate the introduction of corporate governance in business. Measures on preferential bank financing and soft conditions for participation in public procurement may become examples of such motivation.

"The topic is not meaningful at first glance, but it unites a large number of issues that we want to bring to the legislative level. During the meeting, the main reasons for the current situation were identified. The increase in the number of disputes is associated with an increase in the number of corruption processes. On the one hand there is a defenseless businessman, on the other - an entrepreneur who has a "protection". Today, a businessman is "to blame" who is responsible in everything. Officials do not bear any responsibility. We will raise this issue at the meeting of the Council, which will be held on the platform of the General Prosecutor's Office,"- Kairbek Suleimenov summed up.