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Tuesday, January 19th, 2021

Kazakhstan to implement treasury support of public procurement for construction

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by February 28, 2017 Legal

According to Minister, the shadow economy in Kazakhstan, according to official data of the national statistical authorities, is not less than 20% of GDP. One of its main components are the crimes related to the expenditure of budgetary funds in public procurement by cashing through fake compan???. At the same time, a third of the amount of allocated funds accounted for “construction” sector and “trade”.

The lion’s share of violations of budget legislation and the law on public procurement falls on construction. According to the CGD? 115 criminal cases of 380 in 2016 falls on construction, which is 30.2%.

Treasury support of public procurement for the construction was introduced with a view to eliminate the above mentioned risks; it will ensure the transparency of payments, completeness taxes, quality control of construction and the intended use of budgetary funds, control of local content.

“The mechanism of treasury support of public procurement for the construction designed with the discussions with government authorities, the business community, international experience and the current accounts and the control mechanism of quasi-banking sector,” B. Sultanov said.

Supervisor services (engineering company), project management with international experience will be involved in practice for the first time; it will not only monitor the quality of construction, but also the validity of the total expenditure.

This year, this mechanism will be tested in three regions (Astana, Akmola and Karaganda regions). Road map for the implementation of treasury support was approved. Amendments to the legislation of Kazakhstan for standard fastening treasury support of public procurement for the construction will be worked out as a result of the introduction of “pilot” project, Minister of Finance concluded.

It should be reminded that in Address to the Nation “Third modernization of Kazakhstan – global competitiveness” the President outlined cardinal increase of the efficiency of budget spending as a key task.

Source: The Prime Minister of Kazakhstan

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