I approve
Acting Head of the Department
of Agriculture and Land Relations
of the Akmola region
Balzhanov S.M. ____________
Analytical report on the results of an internal analysis of corruption risks in the activities of the department of agriculture and land relations of the akmola region
Kokshetau city 22.04.2022
Based on the results of an internal analysis of corruption risks in the activities of the Department of Agriculture and Land Relations of the Akmola region (hereinafter -the Department) the following results were revealed.
The general period of internal analysis of corruption risks is from April 13 to April 22, 2022.
The analyzed period of activity is from January 1 to December 31, 2021.
During the analyzed period, the following work was carried out.
One of the main functions of Management is the provision of public services (hereinafter referred to as public services).
According to the Register of Public Services, 20 public services in the field of agriculture are assigned to the Management:
- "Subsidizing interest rates for lending to subjects of the agro-industrial complex, as well as leasing for the purchase of farm animals, machinery and technological equipment";
- "Subsidizing the production of priority crops, including perennial plantings";
- "Subsidizing the cost of fertilizers (except organic)";
- "Subsidizing the development of seed production";
- "Subsidizing the cost of water supply services to agricultural producers";
- "Subsidizing for the development of livestock breeding, increasing the productivity and quality of livestock products";
- "Subsidizing the cost of pesticides, bioagents (entomophages) intended for treatment against harmful and especially dangerous harmful organisms with a population above the economic threshold of harmfulness and quarantine facilities";
- "Subsidizing procurement organizations in the field of agro-industrial complex of the amount of value-added tax paid to the budget, within the calculated value-added tax";
- "Accreditation of procurement organizations in the field of agro-industrial complex";
- "Subsidizing interest rates on credit and leasing obligations in the framework of the direction of financial rehabilitation of the subjects of the agro-industrial complex";
- "Subsidizing the reimbursement of part of the expenses incurred by the subject of the agro-industrial complex during investment";
- "Subsidizing within the framework of guaranteeing and insuring loans of subjects of the agro-industrial complex";
- "Subsidizing the costs of audit unions of agricultural cooperatives for conducting an internal audit of agricultural cooperatives";
- "Subsidizing the costs of processing enterprises for the purchase of agricultural products for the production of products of its deep processing";
- "Subsidizing the increase in productivity and quality of aquaculture (fish farming) products";
- "Subsidizing of operating expenses of microfinance organizations";
- "Micro-Credit Guarantee Commission";
- "Certification of producers of original, elite seeds, seeds of the first, second and third reproductions and seed sellers";
- "Issuance of a license to carry out activities for the production (formulation) of pesticides, the sale of pesticides, the use of pesticides by aerosol and fumigation methods";
- "Issuance of a license for the provision of warehousing services with the issuance of grain receipts";
Public services are provided through a web portal "Qoldau.kz ", by means of the subsidy information system subsidy.plem.kz (ISS), through the web portal of "electronic government", through the information system "State Database "E-licensing" (IS GBD "E-licensing".
The total number of public services provided on a free basis is 17, on a paid basis is 2.
Public services are provided in electronic form.
On a paid basis, public services related to the issuance of permits are provided, which can be obtained through the IS GBD "E-licensing":
"Issuance of a license for the provision of warehousing services with the issuance of grain receipts"; "Issuance of a license to carry out activities for the production (formulation) of pesticides, the sale of pesticides, the use of pesticides by aerosol and fumigation methods".
When providing public services related to the issuance of permits, a license fee is paid to the budget at the location of the service recipient for the right to engage in certain types of activities in accordance with Article 554 of the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" (Tax Code). No license fee is charged:
1) when issuing applications to the license;
2) when issuing licenses and (or) annexes to the license on the grounds provided for in Article 44 of the Law of the Republic of Kazakhstan "On Permits and Notifications".
In 2020, 9,780 public services were provided, in 2021 - 11,435. In comparison with last year, public services were rendered by 15% more.
Also, the functional responsibilities of the Department include the development of an NPA within the competence.
In order to provide 5 public services ("subsidizing the development of seed production", "subsidizing the cost of fertilizers (except organic)", "subsidizing the cost of pesticides, bioagents (entomophages) intended for processing against harmful and especially dangerous harmful organisms with a population above the economic threshold of harmfulness and quarantine facilities", "subsidizing the costs of processing enterprises for the purchase of agricultural products for the production of products of its deep processing", "subsidizing the development of livestock breeding, improving the productivity and quality of livestock products") Management (M&E) approves the volumes by resolution.
Resolutions are subject to registration with the judicial authorities.
The development and adoption of Resolutions is carried out in accordance with the Rules for the development, coordination and State registration of regulatory legal acts approved by the Decree of the Government of the Republic of Kazakhstan dated October 6, 2016 No. 568.
Approval by the justice body of draft resolutions is carried out by means of the IPGO within 10 working days, state registration within 5 working days.
1) In accordance with the Rules for Subsidizing the Development of Livestock breeding, Increasing the Productivity and Quality of Livestock Products, approved by Order No. 108 of the Minister of Agriculture of the Republic of Kazakhstan dated March 15, 2019 (hereinafter referred to as the Rules) The Department provides public services "Subsidizing for the development of livestock breeding, increasing the productivity and quality of livestock products" and develops a Resolution of the Akimat of the region, which approves the amount of subsidies.
According to these Rules, the amounts of subsidies within a month after the Rules come into effect and thereafter annually, no later than February 5, are approved by a resolution of the local executive body (service provider).
And so, the Department develops a Resolution of the Akimat of the region, which approves the amount of subsidies, then no later than January 20 of the corresponding year, through the IPGO, the volumes are sent for approval to the Ministry of Agriculture of the Republic of Kazakhstan.
The Ministry within 5 working days reviews the submitted amounts of subsidies for compliance with the goals and indicators of state and government programs, then approves the draft resolution no later than January 25 of the corresponding year or makes a negative decision with a reasoned justification.
The revised draft resolution is submitted to the Ministry of Management for re-approval no later than January 30 of the corresponding year.
It should be noted that when sending the finalized draft to the Ministry no later than January 30 of the corresponding year, it is not possible to approve the amount of subsidies by a resolution by February 5, since in accordance with paragraph 6 of Article 18 of the Law of the Republic of Kazakhstan "On Legal Acts", the Rules for the Development, coordination and state Registration of regulatory legal acts approved by the Decree of the Government of the Republic of Kazakhstan from On October 6, 2016, No. 568, the approval of this draft resolution by the justice body is carried out within 10 working days, state registration within 5 working days.
Also, when making changes to the Rules for the Provision of Public Services, there is a need to amend the resolution.
According to the above, in the certificate on the results of the analysis of corruption risks in the activities of the Department conducted by the Department of the Agency of the Republic of Kazakhstan for Combating Corruption in the Akmola region in 2021, recommendations were made on the need to include these resolutions of akimats of regions in the list of NPAs not subject to registration with the justice authorities, since the resolution itself provides only for the distribution of funds already allocated in the following areas subsidies, the very procedure of approval and state registration in the judicial authorities takes a long time, which negatively affects the timeliness of state support.
In order to implement the recommendation, a letter was sent to the Ministry of Justice of the Republic of Kazakhstan with a proposal to include the resolutions of the akimats of the regions in the list of regulatory legal acts not subject to registration with the justice authorities (Resolution of the Government of the Republic of Kazakhstan dated July 3, 2021 No. 460).
Recommendation: initiate proposals on amendments and additions to the Rules for subsidizing the agro-industrial complex in terms of coordinating the subsidy amounts with the Ministry and business representatives (Chamber of Entrepreneurs) or inclusion of the Resolution on approving the subsidy amounts in the list of regulatory legal acts not subject to registration with the justice authorities (Resolution of the Government of the Republic of Kazakhstan dated July 3, 2021 No. 460).
2) Integration of information systems
Public services are provided through the information system subsidy.plem.kz . The term of rendering according to the Standard of the state service is 2 working days. Verification of the application for completeness of data is carried out within 2 working days.
According to paragraph 12) of the notes to Annex 2 to the Rules of Subsidization, "commodity producers who do not have agricultural land" are not subject to subsidization.
The norm on the mandatory availability of agricultural land applies only to those areas of subsidization for which it is provided in the application forms according to Annex 3 of the Rules.
Due to the fact that the integration of the subsidy.plem information system is not provided.kz the system of the state land cadastre does not make it possible to verify the application of the service recipient for the availability of agricultural land.
The inspection itself by the Management employee is carried out by sending requests to the authorized bodies – departments of land relations of districts, which takes some time and negatively affects the timeliness of state support.
Recommendation: it is necessary to provide for the integration of the subsidy.plem information system.kz by the system of the state land cadastre.
1) The Department provides state services in the field of crop production:
"subsidizing the development of seed production", "subsidizing the cost of fertilizers (except organic)", "subsidizing the cost of pesticides, bioagents (entomophages) intended for processing against harmful and especially dangerous harmful organisms with a population above the economic threshold of harmfulness and quarantine facilities".
Their provision is carried out on the basis of the Rules for subsidizing the increase in yield and quality of crop production, approved by the Order of the Minister of Agriculture of the Republic of Kazakhstan dated March 30, 2020 No. 107.
According to these Rules, the list and amounts of subsidies are provided by a cover letter signed by the akim of the region, the city of republican significance, the capital for approval to the Ministry of Agriculture, after approval by the Ministry, the list and amounts are approved by the resolution of the Akimat of the region. These resolutions are included in the list of regulatory legal acts subject to registration with the judicial authorities.
According to this fact, the Department of the Agency of the Republic of Kazakhstan for Combating Corruption in the Akmola region in 2021 also made recommendations on the need to include these resolutions of the akimats of the regions in the list of NPAs that are not subject to registration with the justice authorities.
The recommendations have been implemented, a letter has been sent to the Ministry of Justice of the Republic of Kazakhstan with a proposal to include the resolutions of the akimats of the regions in the list of regulatory legal acts not subject to registration with the justice authorities (Resolution of the Government of the Republic of Kazakhstan dated July 3, 2021 No. 460).
Recommendation: initiate proposals on amendments and additions to the Rules for subsidizing the agro-industrial complex in terms of coordinating the subsidy amounts with the Ministry and business representatives (Chamber of Entrepreneurs) or inclusion of the Resolution on approving the subsidy amounts in the list of regulatory legal acts not subject to registration with the justice authorities (Resolution of the Government of the Republic of Kazakhstan dated July 3, 2021 No. 460).
1) Public services in the field of crop production are provided by means of the portal "Qoldau.kz ".
For the use of the portal "Qoldau.kz " service recipients pay the developer of the portal JSC "Information and Accounting Center" a subscription fee, whereas according to the Standard of public services, these services are provided free of charge.
On the portal "Qoldau.kz " the User Agreement No. 2/20 on providing access to the information service has been posted, according to which the User is obliged to pay for the Service at a cost determined by the Price List published in open access on the Portal.
Payment of money is made to the settlement account of JSC "Information and Accounting Center".
According to the Price List, the cost is determined in the Monthly Calculation index (MCI): 3 MCI for those who receive subsidies up to 0.1 million tenge; 10 MCI for those who receive subsidies from 0.1 million tenge to 1 million tenge; 11 MCI from 1 million tenge.
From the explanation of the Chamber of Entrepreneurs of Akmola region, it follows that the majority of agricultural enterprises located in villages cannot receive subsidies due to the lack of Internet.
SHTP are forced to come to the district center and use the services of programmers for certain rewards.
At the same time, the CTP transfers electronic digital keys to the programmer, since public services are provided electronically, and the application for a subsidy is submitted electronically and signed by an EDS.
On the portal "Qoldau.kz " there is no possibility of automatic formation of the order of applicants in the absence of funds for subsidies in the field of crop production.
The current mechanism contributes to the risk of receiving state support to "selected" farmers as a priority.
Electronic queue in IP "Qoldau.kz " it is valid only if there are budgetary funds for the payment of subsidies. In this regard, for subsequent periods, the CTP does not have the opportunity to get into the Waiting List Waiting list for consideration of the application.
According to the above, based on the results of the analysis of corruption risks in the activities of the Management of 2021, the Department made recommendations on the exclusion of subscription fees for the use of ICS "Qoldau.kz ", implementation in IP "Qoldau.kz " registration and signing by means of biometric data (photo/video recording) in order to exclude the transfer of EDS to third parties, integration of information systems on the portal Qoldau.kz, prolongation of the submitted CTP application in the IP "Qoldau.kz ", which will guarantee the receipt of subsidies on a first-come, first-served basis with additional allocation of funds or exemption due to refusals.
These recommendations have been implemented, proposals have been sent to the Ministry of Agriculture of the Republic of Kazakhstan and JSC "Information and Accounting Center".
Recommendations: initiate proposals to the Ministry of Agriculture of the Republic of Kazakhstan on the introduction of a "Waiting list" in the Rules of subsidizing in the field of crop production to receive subsidies, which will allow service recipients to get in the waiting queue.
2) The state service "subsidizing the reimbursement of part of the expenses incurred by the subject of the agro-industrial complex, with investments" is also provided by the portal "Qoldau.kz ".
The procedure for the provision of public services is determined by the Rules of subsidizing for reimbursement of part of the expenses incurred by the subject of the agro–industrial complex, with investments approved by the Order of the Acting Minister of Agriculture of the Republic of Kazakhstan dated 23.07.2018 No. 317 (hereinafter - the Rules).
Within the framework of this public service, the Department, as a service provider, considers applications under the passport of project No. 4 "Creation of infrastructure for watering pastures and providing water to livestock farms". To make a decision (approve or accept a reasoned refusal), a group of specialists (at least two specialists) checks the documents, examines the service recipient's object, with the obligatory attachment of supporting photos and video materials, the result is made out by an inspection certificate of the object.
According to this fact, embezzlement of subsidies was revealed, as part of the criminal case under investigation, it was established that the SHTP applied for reimbursement of costs for drilling wells that were not actually drilled. Specialists of the USC Tazhibaev S. and Suleimenov K. departure to the site of the object (well) was not carried out.
By the verdict of the court, S. Tazhibaev was convicted.
It is also established that when applying for subsidies, fictitious well passports are provided in the list of supporting documents, whereas these wells are subject to registration with the Department of Natural Resources and Environmental Management and the Inspectorate for the Regulation of the Use and Protection of Water Resources.
The Rules do not regulate the authentication of passport data.
According to the above, the Department of the Agency of the Republic of Kazakhstan for Combating Corruption in the Akmola region in 2021 made recommendations on the need to ensure the integration of IP "Qoldau.kz " with the information system of the register of state registration of rights to water facilities. This recommendation will streamline the regulation of water relations, relations in the field of water supply and sanitation.
In pursuance of the recommendation, letters were sent to the Ministry of Agriculture with proposals for amendments to the Rules regarding the regulation of a specific list of documents for the passport of project No. 4 (for all project passports). At the same time, subsidies should be provided when creating a complete infrastructure for watering pastures and providing water to livestock farms (wells, boreholes) in the presence of a well, a power plant and a pump.
For this public service, it became possible to get into the Waiting List Waiting List for a subsidy.
By Order No. 332 of the Ministry of Agriculture of the Republic of Kazakhstan dated November 16, 2021, amendments and additions were made to the Subsidy Rules, and so, in accordance with paragraph 32-1 of the Rules, investment subsidy contracts are included in the reserve (waiting list) by the working body (service provider) in order according to the date and time of receipt of applications. Information about the inclusion of the investment subsidy agreement in the reserve (waiting list) is reflected in the subsidy information system. Under investment subsidy agreements received in the reserve (waiting list), subsidies are paid in order according to the date and time of receipt of the investment subsidy agreement in the reserve (waiting list) when additional budget funds are allocated in the current financial year. In the absence of additional budgetary funds in the current financial year, under investment subsidy agreements received in the reserve (waiting list), the payment of subsidies is carried out in the next financial year.
Based on the results of an external analysis of corruption risks in the Department's Management activities, risks were identified:
Risks in providing the domestic market with petroleum products
In accordance with paragraph 1 of Article 24 of the Law of the Republic of Kazakhstan "On State Regulation of production and Turnover of certain types of petroleum products" (dated 20.07.2011 No. 463-IV), paragraph 27), paragraph 15 of the Regulation, the Department performs functions for timely provision of domestic market needs for petroleum products.
So, today, in accordance with the submitted applications (needs) by the akimats of the regions, the Ministry of Energy of the Republic of Kazakhstan (hereinafter referred to as the Ministry) is forming a "Schedule for assigning regions to Oil Refineries (hereinafter referred to as refineries) for the delivery of Diesel fuel (hereinafter referred to as diesel fuel) for spring field work", in the future a similar distribution of guaranteed volumes of diesel fuel for spring field work is carried out by the Department at the regional level within the allocated volumes.
At the same time, during the analysis, a number of corruption risks were identified in terms of discretionary powers and preference for certain operators and SHTP.
For the month of March this year, 34 thousand tons of diesel fuel were allocated to the Akmola region (in total, 70 thousand tons were allocated for spring field work). This volume is distributed by the Ministry among two refineries: PNKHZ LLP (Pavlodar Petrochemical Plant), PKOP LLP (Shymkent Oil Refinery).
According to the information provided, the volume of DT is distributed among 14 operators and 5 SHTP in the region.
Suppliers of diesel fuel to the region, as a rule, are large organizations that have or lease oil terminals in the regions.
However, a non-proportional distribution of DT volumes among operators has been established, in particular when assigning volumes to the resource holders of PNKHZ LLP (Pavlodar Petrochemical Plant), PKOP LLP (Shymkent Oil Refinery), from which, taking into account logistics, the selling price is formed, that is, the operator's margin (transportation costs from PNKHZ LLP (Pavlodar Petrochemical Plant) is several times smaller and, as a result, the cost of diesel fuel).
So, for example, the operators of Vishnevskaya Oil Depot LLP and Petro Retail LLP applied for an equal volume of diesel fuel for the month of March this year in the amount of 2080 tons.
Meanwhile, according to the distribution between the operators of Vishnevskaya Oil Depot LLP, the volume of DT through PNKHZ LLP (Pavlodar Petrochemical Plant) amounted to 520 tons or 130 tons more than Petro Retail LLP (390 tons).
Moreover, according to the Ministry's assignment, 10 thousand tons were determined for PNKHZ LLP (Pavlodar Petrochemical Plant), PKOP LLP (Shymkent Oil Refinery) - 24 thousand tons.
At the same time, the volume of 5 SHTP (carry out the purchase of diesel fuel directly from the refinery) is 1,495 tons, of which 1,365 tons or 91.3% of the total amount are determined through "PNKHZ" LLP (Pavlodar Petrochemical Plant), which is 13.7% of the total volume allocated for the sale of diesel fuel to this refinery (10 thousand tons.) for the month of March.
In connection with the above, there are risks of giving preference to one or another operator and CTP in the distribution of the volumes of DT sold.
The procedure for the supply of diesel fuel for spring field and harvesting work is not regulated by the NPA, there are no relevant requirements.
The analysis also examined complaints and appeals on this issue received by the Chamber of Entrepreneurs of the Akmola region (hereinafter - the Chamber) regarding the selection of operators for the supply of diesel fuel for spring field and harvesting operations, determining prices without the participation of end users of fuel and lubricants - agricultural producers (including at the district level).
The Chamber receives complaints from business entities, in particular, the choice of operators without coordination with the business community, giving priority to a certain operator (which does not have a storage capacity in the district), the non–proportional distribution of fuel volumes among operators.
Also, these functions refer to functions that have signs of a public service ("hidden" public services).
In this connection, in order to regulate the procedure for rendering, deadlines, reducing administrative barriers and corruption risks, we believe it is necessary to work out the issue of including this function in the Register of Public Services with the subsequent development and approval of the standard and other NPA.
This function contains signs of public services, as it is focused on the realization of the rights, freedoms and legitimate interests of service recipients and is carried out individually, at the request of the service recipient.
To date, the procedure for the supply of diesel fuel for spring field and harvesting work is not regulated by the NPA, there are no relevant requirements.
In this connection, corruption risks arise in the activities of the Department.
Based on the results of the external analysis of corruption risks in the activities of the Department, the working group recommended to send proposals to the authorized body regarding the regulation of the procedure for the distribution of DT.
In order to implement the recommendation and ensure transparency of the process when determining operators, a letter on regulating the procedure for the distribution of diesel fuel was sent to the Ministry.
Recommendations: it is necessary to regulate the procedures for the distribution of DT.
Corruption risks during inspections
When conducting inspections with a visit to the subject, officials have a risk of "direct contact" with the subject, and as a result of abuse of their official position and use of the current situation for selfish purposes.
For example, the Prosecutor's Office of the region checked the activities of the Department on the legality of spending budget funds allocated as subsidies for the development of the agro-industrial complex (hereinafter referred to as the agro-industrial complex) for 2017-2020.
The audit revealed violations of a systemic, massive nature and testifying to serious shortcomings and omissions in the organization of the work of the Department. In total, the amount of damage caused to the state as a result of illegal subsidies is more than 600 million tenge.
During the audit, the facts of satisfaction of obviously illegal applications were established, which indicate the preference of the Management staff for individual SHTP:
- acceptance and further satisfaction of the CTP applications that were subject to refusal to register (not a complete set of documents);
- making a decision on the basis of an inspection report carried out formally, often without actually leaving;
- receiving subsidies on the basis of forged certificates of inspections of facilities and applications;
- export certificates for other animals are attached to part of the applications by the partnership (the identification number of the animal in the certificate does not match the number of the animal specified in the application);
In this regard, in order to ensure transparency and objectivity of the process of control and supervision according to paragraphs 2-1) of Part 1 of Article 154 of the Entrepreneurial Code, officials of state bodies during control and supervision of the audited entities have the right to make audio, photo, and video recordings.
In order to eliminate risks, the Management has introduced the practice of photo-video recording of control procedures.
The presence of discretionary powers in the risk assessment criteria and checklists
According to paragraph 45), paragraph 15 of the Regulation, the Department performs the functions of certification of seed production entities and laboratories for the examination of seed quality with the issuance of an appropriate certificate in accordance with the procedure determined by the authorized body. These functions are regulated by the Rules of certification of producers of original and elite seeds, seeds of the first, second and third reproductions, seed sellers (Order No. 4-2/266 of 27.03.2015).
However, the analysis revealed the risks of discretionary powers in the implementation of control and authorization functions.
According to Annex 2 to the producers of original seeds, 16 points of requirements are provided. The criteria for producers of original seeds include 17 points. The Rules apply to seed farms - 18 points, in Criteria - 19 points.
Moreover, according to paragraph 16) of the requirements of the Rules, "ensuring the safety of accounting materials for seed production for at least five years" is provided. However, according to paragraph 13) of the Criteria, "Ensuring the safety of accounting materials for seed production for at least six years" is provided.
Also, the criteria for the degree of risks to producers of original seeds do not provide requirements for a number of sub-paragraphs of the Rules:
– clause 4) "experience in the production of original seeds (primary seed production) - at least five years";
- item 6) "absence of quarantine facilities on the territory of the producer of original seeds, confirmed by the state plant quarantine inspector of the territorial inspection of the State Inspection Committee in the agro-industrial complex of the Ministry of Agriculture of the Republic of Kazakhstan, while quarantine facilities must be absent on the territory of the producer of original seeds also for a period of at least three years before certification";
- item 9) "ensuring the production of original seeds in strict accordance with schemes that take into account the biological characteristics and properties of the crop and variety";
At the same time, the Criteria provide additional requirements:
- clause 14 "Provision of documents confirming varietal and sowing qualities, as well as the characteristics (description) of the variety, when selling seeds";
- item 15 "Availability of documents confirming the testing of varietal crops";
- Item 16 "Availability of documents confirming the systematic inspection of crops (plantings), territories, seed cleaning machines and mechanisms, warehouses for the identification of quarantine facilities and measures to combat them";
- Item 17 "Compliance with the prohibition on the indication on containers and packages, labels and accompanying documents of untrue information about the name of the variety, origin and quality of seeds during the sale and transportation of seed batches, as well as the dissemination of deliberately false advertising about seed batches in the media."
A similar situation is observed in other requirements, including for elite seed farms. Thus, the Criteria do not provide for the requirements of paragraphs 4), paragraph 5), paragraph 21) of the Rules, as well as additional requirements (paragraphs 36, 37, 38, 39).
The requirements of paragraphs 1), paragraph 7), paragraph 10) of the Rules are not provided for seed farms, as well as additional requirements (p.55, p.56, p.57, p.58).
According to paragraph 18) of the requirements of the Rules, "ensuring the safety of accounting materials for seed production for at least one year" is provided. However, according to paragraph 54) of the Criteria, "Ensuring the safety of accounting materials for seed production for at least three years" is provided.
The requirements of paragraphs 7), paragraphs 8) of the Rules are not provided for seed sellers, as well as additional requirements of paragraphs 65, paragraph 66 are provided for by the Criteria.
According to paragraph 6) of the requirements of the Rules, "ensuring the safety of accounting materials for seed production for at least two years" is provided. However, according to paragraph 64) of the Criteria, "Ensuring the safety of accounting materials for seed production for at least three years" is provided.
The above circumstances indicate the emergence of risks of discretionary powers, the creation of administrative barriers for business entities.
According to the qualification requirements (Order No. 4-1/339 of 16.04.2015), the applicant is presented with 6 points of requirements, compliance with these requirements is established by the licensor by conducting another form of control according to paragraph 3) paragraph 3 of Article 137 of the Entrepreneurial Code of the Republic of Kazakhstan.
However, the analysis revealed the risks of discretionary powers in the implementation of control and authorization functions.
Thus, according to the criteria for assessing the degree of risks and checklists in the field of grain market regulation, safety and quality of cotton (Joint Order of the Ministry of Agriculture No. 259 of 10.07.2019 and MNE No. 63 of 12.07.2019), subjective criteria for assessing the degree of risk in the field of grain market regulation for grain receiving enterprises provides 22 criteria points.
At the same time, these requirements are not identical. In this connection, the question arises what requirements are guided by employees when conducting preventive control for compliance with qualification requirements.
The above circumstances contribute to the emergence of corruption risks of creating administrative barriers or giving preference to certain entities.
Risk of extending the check
Within the framework of Article 148 of the Entrepreneurial Code, the terms of inspection and preventive control and supervision with a visit to the subject (object) of control and supervision
are defined. (3) paragraph 1 of Article 148, the term of inspection in the field of seed production, grain market is defined no more than five working days, with the right to extend up to five working days. According to paragraph 2 of the above article, the terms of the audit may be extended only once, in cases established by the Code.
At the same time, it should be noted that earlier in the old edition of the Business Code, it was provided for the suspension of the audit for a period of no more than one month.
However, today this rule is excluded.
In this connection, there is a risk of unscrupulous SCPs using this norm for selfish purposes or formally conducting an audit (due to lack of time).
In order to eliminate corruption risks identified by the results of an external analysis of corruption risks, the Department carried out work on the Action Plans approved and agreed by the Department from 04/26/2021 and from 09/01/2021.
In order to implement the Plans and eliminate risks, the Management sent proposals to the Ministry of Agriculture of the Republic of Kazakhstan (May 11, 2021 for No. 06-23/1479) regarding:
regulation of the procedure for the distribution of diesel fuel;
inclusion of functions for timely provision of domestic market needs for petroleum products in the Register of Public Services;
to ensure the inclusion in the contracts of a clause (obligation) for the sale of diesel fuel by operators of the SHTP at a fixed price (including in case of late payment of the refinery);
to consider the creation of permanent commissions to determine operators and the selling price for the STHP of the region;
amendments and additions to the Criteria for assessing the degree of risks and test sheets in the field of seed production, as well as to the Rules for certification of producers of original and elite seeds, seeds of the first, second and third reproductions, seed sellers in terms of excluding discretionary powers;
amendments and additions to the NPA "Subsidizing the development of seed production";
the need to provide for the implementation of additional funding for programs with a shortage of funds, in the form of subventions or targeted transfers.
Also, the practice of photo-video recording of control procedures has been introduced, changes and additions have been made to the Management Regulations.
In order to ensure openness and transparency, Akimat of Akmola region instructed akims of districts, cities of Kokshetau and Stepnogorsk to create commissions to identify fuel operators to ensure autumn field work with the involvement of NCE "Atameken", agricultural producers of the district and fuel companies (letter attached).
By the resolution of the Akimat of Akmola region dated 11.05.2021 A-5/233, the list of preventive control for the 2nd half of 2021 was approved (the resolution is attached).
And also, changes have been made to the Management Position regarding the exclusion of functions that are not carried out by the management.
In accordance with that Management Order No. 9 l/s dated April 30, 2021, special names were assigned to the relevant administrative civil servants (the order is attached).
In addition, the Department sent a letter to the Ministry of Agriculture of the Republic of Kazakhstan and the Department of Economy and Budget Planning of the Akmola region with a proposal to increase the minimum amount of budget funds allocated for subsidizing the agro-industrial complex to ensure the full need for subsidies.
A letter was sent to the Ministry of Justice of the Republic of Kazakhstan with a proposal to include the resolutions of the akimats of the regions in the list of regulatory legal acts not subject to registration with the justice authorities (Resolution of the Government of the Republic of Kazakhstan dated July 3, 2021 No. 460).
A proposal was sent to the Ministry of Agriculture of the Republic of Kazakhstan and JSC "Information and Accounting Center" to exclude the subscription fee for the use of ICS "Qoldau.kz ", implementation in IP "Qoldau.kz " registration and signing by means of biometric data (photo/video recording) in order to exclude the transfer of EDS to third parties, integration of information systems on the portal Qoldau.kz, prolongation of the submitted CTP application in the IP "Qoldau.kz ", which will guarantee the receipt of subsidies on a first-come, first-served basis with additional allocation of funds or exemption due to refusals, as well as informing the SHTP about the possibility of submitting an application on the portal "www.qoldau.kz "by setting a specific start time for accepting applications.
Also, letters were sent to the Ministry of Agriculture of the Republic of Kazakhstan with proposals for amendments to the order of the Deputy Prime Minister of the Republic of Kazakhstan - Minister of Agriculture of the Republic of Kazakhstan dated October 26, 2018 No. 436 "On approval of the Rules for subsidizing interest rates when crediting subjects of the agro-industrial complex, as well as leasing for the purchase of farm animals, machinery and technological equipment" in terms of inheritance rights to receive subsidies; on consideration of the issue of preferential lending to agricultural enterprises with low interest rates (1-2%) through tier 2 banks (the experience of EU countries) instead of subsidizing the agro-industrial complex; on amendments and additions to the order of the Acting Minister of Agriculture of the Republic of Kazakhstan dated July 23, 2018 No. 317 "On approval of the Rules of subsidization for reimbursement of part of the expenses incurred by the subject agro-industrial complex, with investments" in part:
- mandatory provision of information to the SHTP on the share of participation in the authorized capital, which directly or indirectly belong to the state;
- on the need for an expert examination by a state expert organization (RSE "State non-departmental expertise of projects") on technically complex objects of the 2nd level;
- revision of the IP "Qoldau" by supplementing the electronic application form for subsidizing investment projects with the mandatory details "number and date of issuance of the conclusion on the POI" and "the expert organization that issued the conclusion on the POI";
- in order to prevent the facts of double subsidization, it is necessary to eliminate the existing problems of IP integration"Qoldau.kz " with the electronic information system invoices;
- in order to prevent the provision of fictitious documents, it is necessary to regulate a specific list of documents for the passport of project No. 4 (for all project passports). At the same time, subsidies should be provided when creating a complete infrastructure for watering pastures and providing water to livestock farms (wells, boreholes) in the presence of a well, a power plant and a pump.
As well as suggestions:
- on amendments and additions to the Rules for subsidizing automatic verification of the availability of accounting numbers for the relevant type of activity of a commodity producer at the stage of application formation through integration with the EASU system (Unified Automated Control System);
- to provide in the IBSPR and the ICI for the automatic imposition of encumbrances on the subsidized livestock to exclude the possibility of uncontrolled removal of animals from registration;
- carrying out the integration of information systems (stat.gov.kz , IS "INIS", AIS "GZK") with an information system of subsidization;
- amendments and additions to the Order of the Minister of Agriculture of the Republic of Kazakhstan dated March 15, 2019 No. 108 "On approval of the Rules for subsidizing the development of livestock breeding, increasing the productivity and quality of livestock products" regarding the establishment of a production limit in the subsidy information system for each milked mare/cow.
- amendments to the Order of the Minister of Agriculture of the Republic of Kazakhstan dated March 30, 2020 No. 107 "On approval of the Rules for subsidizing the increase in yield and quality of crop production" regarding the establishment of a ban on subsidizing pesticides/herbicides purchased from affiliated entities in order to prevent embezzlement of budget funds.
- amendments and additions to all the Rules of subsidizing the clause that organizations are not allowed to subsidize, fifty percent or more of the shares (participation shares in the authorized capital) of which directly or indirectly belong to the state, the national management holding, the national holding, the national company (with the exception of the socio-entrepreneurial corporation, as well as business entities established by within the framework of the public-private partnership agreement).
- in order to support the agricultural program "Subsidizing the production of priority crops", with the provision of a subsidy mechanism, so that under this program subsidies are paid upon the fact of sowing for the cultivation of priority crops (cereals, oilseeds, fodder and potatoes and vegetables of open and closed soils).
- on the need to develop regulations for the distribution of diesel fuel (including filing applications through information systems) to ensure transparency of the process when determining operators.
Based on the results of the internal analysis of corruption risks, the working group recommends:
send a corresponding proposal to the Ministry of Agriculture of the Republic of Kazakhstan regarding:
the need to provide for the integration of the subsidy.plem information system.kz by the system of the state land cadastre;
on amendments and additions to the Rules of subsidizing the agro-industrial complex in terms of coordinating the amount of subsidies with the Ministry and business representatives (Chamber of Entrepreneurs) or the inclusion of a Resolution approving the amount of subsidies in the list of regulatory legal acts not subject to registration with the justice authorities (Resolution of the Government of the Republic of Kazakhstan dated July 3, 2021 No. 460);
on the introduction of the Rules subsidies in the field of crop production of a "waiting list" for receiving subsidies, which will allow service recipients to get into the waiting queue;
on the regulation of the procedure for the distribution of DT.
Chief Specialist
of the Livestock Department
Department of Agriculture
and Land Relations
Akmola region Belgibaeva А.М.
Agreed:
Deputy Head
Department of Agriculture
and Land Relations
Akmola region Itkusov H.L.
Head of the Department
of Regulation and Coordination
of Land Relations
Department of Agriculture
and Land Relations
Akmola region Karymsakova R.O.
Head of the Department
of State Technical
Inspection and Mechanization
Department of Agriculture
and Land Relations
Akmola region Talap A.N.
Chief Specialist
of the Department of Agriculture and
Grain Market Regulation of the Department
of Agriculture and Land Relations
Akmola region Litovchenko V.A.