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Measures of state support for business

As part of implementing a Roadmap of the Cooperation Agreement between the Agency and the Atameken National Chamber of Entrepreneurs, an analysis has been conducted to identify the roots and causes of corruption at organizations of central and regional levels in 16 areas that have major importance for business development.

Reference: healthcare, business development at local executive bodies, agriculture, architecture and urban planning, energy, housing and utilities sector, land matters, public procurement conducted by local exec bodies, tax administration, customs, management of natural resources and environment, veterinary supervision, sanitary and epidemiological surveillance, fire protection, industrial safety, execution of judicial acts, transport control.

Following the work done in these areas, 245 recommendations were issued with 52% aimed at eliminating corruption loopholes in regulatory legal acts (21% in laws, 31% in by-laws), and 48% in organizational and managerial activities.

Based on the recommendations issued, following activities are carried in these areas:

  • In healthcare, a shift to electronic format for purchases of medicines and drugs is considered based on the e-procurement site of the Ministry of Finance;
  • In agriculture, the draft Law "On Amendments and Additions to some Legislative Acts of the Republic of Kazakhstan on Regulation of the Agro-Industrial Complex" specifies sanctions for violating the requirements for storage, transportation and use of pesticides; governs the reasons for refusal to issue a quarantine certificate; and also addresses the issue of supplying state inspectors of regional territorial inspections for the protection of wildlife with portable video surveillance (in total, 288 video recorders and 14 servers totaling KZT38.7 million);
  • In the field of public procurement, the Ministry of Finance is working on implementing the Register of complaints from perspective suppliers, activating the mechanism of Single pre-qualification on electronic platforms of the web portal of public procurement and procurements of the Samruk-Kazyna National Welfare Fund;
  • In tax administration, to avoid corruption risks associated with instability of legislation and unpredictability of the rules (so far, more than 140 normative legal acts have introduced some changes to the Tax Code); the draft of a new Tax Code provides for the restriction of amendments and additions no more than once per year; an Integrated Tax Administration System is being developed, with planned putting into operation in 2020;
  • In customs, the Customs Code is under revision to eliminate discretionary powers, administrative barriers and bureaucratic red tape; there is also a process of strengthening customs control, with preventing the involvement of middlemen; along with the adoption of the new Customs Code for Eurasian Economic Union in January 2018 it is planned to put "Astana-1" into commercial operation;
  • to ensure openness and transparency in architecture and urban planning, the local exec bodies are considering the possibility of posting on official websites of akimats the detailed design projects and information on engineering communications schemes for population settlements;
  • in land matters, authorities working on introducing a unified republican database of individuals registered to obtain a plot of land for private housing projects;
  • in transport control, the issue of restoring the working capacity of existing CAIS (repairing of weighing equipment, metrological expertise), the implementation of a pilot project on CAIS installation developed based on the Reaction-Loadcell Plate made by a Korean company ENB Group with further PPP application mechanism, development of an investment proposal for the “Digitalization of transport” project.

To date, the Agency has sent a follow-up letter to involved state bodies requesting an update regarding the implementation of the recommendations issued.

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