Analytical report on the results of an internal analysis of corruption risks in the activities of the Department of State Property and Privatization in the Abay region of the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan

June 25, 2024

The working group consisted of: Deputy Head of the Department, N.R. Akshekin; Head of the Legal Entities and Property Management Department, E.A. Abeshov; Head of the Financial Support Department, Zh.Sh. Dastanova; Chief Specialist of the Asset Management and HR Department, Zh.T. Akhmetzhanova; and Head of the Department for Handling Property Received on Specific Grounds, U.G. Kuanyshbaeva. In the period from June 1, 2024 to June 15, 2024, in accordance with paragraph 5 of Article 8 of the Law of the Republic of Kazakhstan "On Combating Corruption" dated November 18, 2015, the order of the Chairman of the Agency of the Republic of Kazakhstan for Civil Service Affairs and Anti-Corruption dated October 19, 2016 No. 12 "On Approval of the Model Rules for Conducting an Internal Analysis of Corruption Risks" and on the basis of the order of the Chairman of the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan No. L-69 dated April 11, 2024 and on the basis of the order of the head of the State Institution "Department of State Property and Privatization for Abay Region of the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan" (hereinafter referred to as the Department) No. 3-L dated May 23, 2024, an internal analysis of corruption risks was conducted.

The internal corruption risk analysis covers the first half of 2024 (hereinafter referred to as the current period).

The internal corruption risk analysis was conducted to identify corruption risks in regulatory legal acts affecting the activities of the Department and its subdivisions, as well as corruption risks in the organizational and managerial activities of the Department and its subdivisions.

Identification of corruption risks in regulatory legal acts affecting the activities of the Department and its subdivisions

Department for Work with Legal Entities and Property Management.

The Department for Work with Legal Entities and Property Management (hereinafter referred to as the Department) is a structural subdivision of the Department.

The Department is guided by the following legal and regulatory acts in its activities:

1) Regarding the alienation of state property:

- Chapter 10, Articles of Paragraphs 1 and 2 of the Law of the Republic of Kazakhstan "On State Property" dated March 1, 2011, No. 413-IV;

- "Rules for the Sale of Privatization Objects," approved by Government Resolution No. 920 dated August 9, 2011.

The Department conducts electronic auctions for the sale of state-owned assets on the State Property Register website www.gosreestr.kz.

The electronic auction is conducted online via the website, which promotes the openness and transparency of the Department's work. During an electronic auction, there is no direct contact with the participants, as they submit their bids publicly, and the winner is determined automatically through the website. The results of the electronic auction serve as the basis for concluding the purchase and sale agreement. Applications for participation in the auction are submitted electronically, and security deposits are directly deposited into the account of JSC Information and Accounting Center, which is the single operator. The auction is conducted electronically, automatically, without the involvement of Department specialists. The purchase and sale agreement is concluded electronically on the registry web portal and is signed by the seller and buyer using a digital signature.

Thus, the human factor, which could influence the auction results, is completely eliminated throughout the entire electronic auction process.

with regard to the provision of republican property for lease to individuals and non-state legal entities:

- Articles of Chapters 7 and 8 of Section 3 of the Law of the Republic of Kazakhstan "On State Property" dated March 1, 2011, No. 413-IV;

- Articles 378 to 405 of Chapter 22 of the Civil Code of the Republic of Kazakhstan;

- Rules for the Transfer of State Property for Lease (Rent), approved by Order No. 212 of the Minister of National Economy of the Republic of Kazakhstan dated March 17, 2015 (hereinafter referred to as the Rules);

- Order No. 211 of the Minister of National Economy of the Republic of Kazakhstan dated March 17, 2015, "On Approval of the Standard Form of the State Property Lease (Rent) Agreement."

The Rules stipulate that the asset holder shall provide the lessor with information on excess and unused real estate and other property without specifying the prospective lessee. Following the review of this information, the lessor shall publish the submitted information on the web portal of the State Property Register (hereinafter referred to as the Register).

According to the Rules, the lease announcement is posted on the web portal, and anyone may submit an application for the lease agreement electronically. The lease agreement with the sole applicant for the lease also constitutes