"Landless" investors of the "Ongtustik" SEZ.

On one of the land plots located in the SEZ "Oңтүстік", a company was supposed to be built and prepared for launch, with operations planned to commence in December of this year. The relevant agreement for participation in the SEZ was signed by the management of LLP "Dapter Line" a year ago. So soon, we may be celebrating the anniversary of unfulfilled hopes, unrealized plans, and unmet investment commitments.

– Due to the untimely provision of the land plot, the investor has not received the architectural and planning assignment, and the authorized body has not issued a permit to start construction and installation works, – comments the situation the head of the prosecutor's office of Shymkent, Bakhytzhan Baigoziev. – As a result, the investor spent ten months going from office to office instead of building the workshop and installing the equipment. Meanwhile, the management company of the SEZ is tasked with providing land plots to investors for temporary paid use. Contrary to these requirements, the SEZ has still not provided a land plot for LLP "Dapter Line". It is already quite clear that it will not be possible to launch the workshop in December of this year, as planned by the management of LLP "Dapter Line", no matter how much they desire it.

Entrepreneurs turned to the supervisory authority for help, realizing that they could not overcome the administrative barriers that suddenly appeared in their way on their own. At the same time, the prosecutor's inspection showed that this is far from a unique case, where businessmen spend months going in circles but still cannot complete the necessary paperwork for constructing a company.

Several other companies found themselves in a similar situation to LLP "Dapter Line" – LLP "Qazturk minerals", LLP "Nova shoes", "Isiklar Qagaz Kap", "Innovexx", "ZeineP". An investment agreement has been concluded with each of them at the end of last year or the beginning of this year.

Only during the prosecutor's inspection were land plots finally provided to two investors – LLP "Qazturk minerals" and LLP "ZeineP". Four investors are still waiting, continuing their futile attempts to complete the necessary documentation.

The prosecutor's office of the city deemed this situation unacceptable. They initiated a discussion at the meeting of the Council for the Protection of Entrepreneurial Rights and the Fight Against Corruption under the Chamber of Entrepreneurs regarding the inaction of the SEZ management in allocating land.

– This is a very serious issue, – believes Bakhytzhan Baigoziev. – The main goal of creating a special economic zone is to accelerate the development of the region and to create highly efficient, including high-tech and competitive productions. In practice, however, we see that despite the state's support for attracting investments, the SEZ management creates artificial administrative barriers that hinder the swift launch of investment projects.

The chairman of the board of JSC "Management Company of SEZ 'Oңтүстік'" Ganibet Aubakirov immediately rejected all complaints from entrepreneurs and the supervisory authority, citing the lengthy process of documenting land plots and a limited staff.

– When documents for these land plots are submitted to public service centers for state acts, problems arise with the processing time, and our work largely depends on this fact, – explained Ganibet Aubakirov. – According to regulations, this procedure is allotted 14 days, but in reality, the time exceeds this period, and there are plenty of procedural moments in the documentation process. After signing the agreement with the entrepreneur, the time frame for processing documents for the land plot increases.

The director of the infrastructure operation department of the SEZ "Oңтүстік", Zhan Yerzhanov, added that the process of documenting land plots consists of nine (!) stages, sometimes exceeding the legally stipulated working days and dragging on indefinitely.

Such responses did not satisfy the council members, who criticized the work of the SEZ management.

– So, investors come, they are given papers, and they run around the authorities themselves? – was outraged council member Batyrbek Otinsheyev. – This is why the documentation takes so long. Almost a year has passed. These enterprises could have been operational long ago, people would have found jobs, and taxes would have flowed into the city budget. I think the akim of Shymkent will be horrified when he learns what is happening. He runs around looking for investments, and it turns out that the SEZ is throwing roadblocks in his way. I did not like the attitude of the SEZ director towards work. He came here and responds as if he is not the SEZ director, but a schoolboy. This is unacceptable.

Now it is clear why only 60 entrepreneurs have come to the SEZ in 20 years. Three projects a year is very little. That’s why I asked what his responsibilities are. He replied: “To attract investors!” But then he needs to work and chase after entrepreneurs!

Council member Tatyana Koretskaya suggested contacting the anti-corruption service to check the flow of documents and identify any corruption risks. She expressed confidence that in this case, the matter would move from a "dead" point.

The chairman of the Association of Greenhouse Growers and Gardeners of the Turkestan region and the city of Shymkent, Myrzakhmet Snaabaev, is also a council member. He has experience as the head of the entrepreneurship department. He was also among those who created the SEZ and later led it.

– I do not understand this attitude towards work, – Myrzakhmet Snaabaev is outraged. – We chased after every investor to ensure they started producing goods. And now I can’t even imagine how they are working. Everything has been abandoned, there isn’t even a plan of activities: which company enters the SEZ, when it starts operations, when it begins production? This all should be outlined. What obstacles exist? Everything must be taken into account, and assistance must be provided to businesses in overcoming them. Most importantly, document flow must be constantly monitored.

Now we hear that the SEZ management has not reached out to anyone… The entrepreneur is on his own, and the SEZ director is on his own.

As a result of the discussion on the problematic issue, council members recommended that the Shymkent prosecutor's office consider the question of holding accountable officials who violated the rights of entrepreneurs.

The Chamber of Entrepreneurs, in collaboration with the prosecutor’s office and the entrepreneurship department of the Shymkent akimat, intends to provide investors with comprehensive support for the timely implementation of investment projects and to develop a step-by-step algorithm for carrying out investment projects regarding the allocation of land plots for SEZ participants, specifying the clear deadlines set by law.