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Financial violations totalling 58.5 billion were uncovered by the WAC after an audit of the Zhambyl region

Submitted by Вера Александрова on
аудит ВАП

The Supreme Audit Chamber (SAC) has published the results of an audit into the efficient use of budget funds and state assets in the Zhambyl Region.

According to the press service of the chamber, the region showed growth in key macroeconomic indicators over the period 2020–2024, although its share of the national GDP fell from 2.7% to 2.3%

At the same time, the volume of investment over the first 10 months of the current year exceeded 553 billion tenge1.4 times more than in the same period in 2023. Nevertheless, in terms of fixed capital investment, the region lags behind the leaders of the national ranking by more than 3.5 times.

The SAC audit revealed systemic shortcomings in budget planning, public procurement, management of investment projects, and in the activities of JSC «SEC «Taraz». 

A high dependency of the region on the national budget was noted — an average of 80% over 2020–2024. Over this period, the volume of transfers increased by more than 51%: from 344 billion tenge to 521 billion tenge. At the same time, instances of unspent funds amounting to over 38 billion tenge were identified in the region.

The auditors also found that the regional development programme for 2021–2025 lacked key initiatives and target indicators for a number of pressing issues: there are no sewage treatment facilities in Taraz, the number of people on the housing waiting list is growing, and the rate of adoption of water-saving technologies on irrigated land is low.

In the area of public procurement, auditors identified the unjustified use of a special procedure for concluding contracts with a «For official use only» classification, which restricts competition. Furthermore, there were cases of contracts being awarded to affiliated companies.

The auditors noted weak oversight of investment project implementation. In particular, contractors were paid for uncompleted work, and advances were transferred despite the existence of outstanding debts.

For example, in June of this year, the Taraz Department of Housing and Public Utilities paid over 537 million tenge for medium-level repairs to city roads, yet work had not started even 70 days later. Actual implementation only began after the intervention of the SAC.

Another example is the construction of a gas supply pipeline to 18 settlements in the Shu district. The project has been unable to be completed for over six years, despite a standard completion period of two years, leading to the inefficient use of 8.2 billion tenge and its subsequent return to the higher-level budget.

The auditors also raised complaints about the activities of SEC «Taraz»: the development plan lacks indicators aimed at improving operational efficiency. 

«In December 2024, the number of existing indicators was reduced from 18 to 5, and the indicators for the remaining ones were adjusted to match actually achieved results,» the statement said.

Overall, auditors identified financial violations totalling 58.5 billion tenge, of which 47.1 billion tenge were discrepancies in accounting and financial reporting. The share of inefficient planning and use of budget funds amounted to 75.6 billion tenge.

It is worth recalling that the SAC previously refused to provide audit reports on 15 entities within the agricultural sector, including the Ministry of Agriculture. 

Agricultural expert and founder of the FBRK, Kirill Pavlov, sent an official request as early as 5 November, but instead of specific documents, he received only general conclusions about problems in the industry. After all set deadlines had passed, Pavlov filed a complaint against the actions of the chamber.