An audit of state support for businesses in Astana has revealed inefficient use of budgetary funds and assets totalling 2.84 billion tenge. The inspection also recorded financial violations amounting to 182.1 million tenge, economic losses of 89.5 million tenge, and shortcomings in the mechanisms for providing assistance to entrepreneurs.
WHAT THE AUDIT REVEALED
According to BES.media, the inspection covered measures of state support for entrepreneurship and the implementation of public-private partnership projects. The audit revealed financial violations amounting to 182.1 million tenge, inefficient use of budgetary funds and assets totalling 2.84 billion tenge, as well as economic losses of 89.5 million tenge.
The report also stated that the agreements between the city administration and the Damu Fund lacked a requirement for the registration and actual operation of support recipients within Astana. As a result, city budget funds could be received by entrepreneurs operating in other regions.
WHAT SHORTCOMINGS WERE FOUND
According to the report, 1 billion tenge was allocated for business lending in both 2023 and 2024. The total amount of 2 billion tenge was classified by auditors as inefficiently used funds.
It is noted that the city administration did not assess the results of the support provided, including the volume of taxes paid, the number of jobs created, and the change in financial indicators of recipients two years after receiving assistance.
According to the audit, projects under the Astana Business 2 programme were approved without a mandatory business plan or assessment of the expected economic impact. Furthermore, the contracts did not include a requirement to submit the results of monitoring the intended use of the loans.
WHAT THE CHECK OF ASSISTANCE RECIPIENTS SHOWED
As per the report, a cross-check with the tax authorities showed that 423 recipients of state support submitted declarations with zero turnover. Another 32 companies were classified as dormant, as they had not submitted tax reports or carried out financial and economic activities for more than two years.
Under one of the budget programmes, financial assistance was provided to 24 projects. The plan was to create 24 jobs, but only 6 were actually created. Under the partial loan guarantee programme, the plan was to create 48 jobs, but 31 were actually created.
For certain budget programmes, the indicators in the reports were distorted.
WHICH EXPENDITURES WERE DEEMED INEFFICIENT
The inspection showed that some projects did not comply with the subsidy rules, and some entrepreneurs violated loan repayment deadlines. Subsidy payments were stopped for 44 projects, with inefficient expenditures amounting to 119 million tenge.
A further 6 entrepreneurs who received subsidies submitted tax reports with zero results. 148.7 million tenge was directed towards their support, yet the audit recorded no increase in income or creation of new jobs.
The report separately describes a case where property purchased with borrowed funds was transferred to a related company. The loan was not repaid on time, and inefficient expenditures totalled 45.9 million tenge.
According to the audit, 345 million tenge was allocated for grants to implement new business ideas, which were received by 69 projects. As the report indicates, the obligations to create jobs were not fulfilled, so the entire amount was deemed inefficiently used.
Furthermore, the entrepreneurship department concluded 14 contracts for subsidising loans and leasing worth 2.12 billion tenge in the absence of corresponding funding in the budget. Another 14 applications worth 588.9 million tenge were placed in reserve. According to the report, the total volume of liabilities reached 2.71 billion tenge.
HOW THIS RELATES TO BUSINESS DEVELOPMENT
According to the report's data, 273,300 active small and medium-sized business entities are registered in Astana, which is 10.1% more than the previous year.
At the same time, only a small proportion of entrepreneurs utilised state support: 0.8% of active SMEs in 2022, 1.9% in 2023, and 1.5% in 2024.
