In the Karaganda region, legal regulations have been violated, resulting in a loss of 5.3 billion tenge.

The results were disappointing.

“The verification activities encompassed the Department of Finance of the Karaganda Region, the Department of Economy, the Department of Energy and Housing Utilities, LLP ‘Karaganda Su’, LLP ‘Teplotransit Karaganda’, LLP ‘Center for Housing Fund Modernization’, JSC ‘Football Club Shakhtar’, and the Department of Housing Utilities, Passenger Transport, and Roads of Karaganda. As a result, it was established that over the past 5 years, the debt of local executive bodies has increased by 2.2 times, while the costs for servicing this debt have risen by 1.5 times. Specifically, during the coronavirus pandemic, there was a large issuance of government securities and a breach of the debt limit for local executive bodies for 2020 by 3.8 billion tenge. Nonetheless, today the overall debt burden is assessed as manageable,” the report states.

However, despite the favorable trend in debt at present, the peak burden on the budget for its repayment will occur in 2031—21.7 billion tenge across 20 contracts. Overall, as of January 1, 2024, 60.4% of the total principal debt is due for repayment between 2030 and 2043.

Auditors also noted a formal approach by government agencies at the regional level to monitor external and internal loans of quasi-government sector entities.

“Thus, against the backdrop of the overall unprofitability of LLP ‘Teplotransit Karaganda’, the increase in its losses heightens the risk of non-fulfillment of obligations under loan agreements. Instances were identified of the distribution of net profits in favor of the participants’ shares in LLP ‘Karaganda Su’ and the borrowing of budget credits while simultaneously placing free cash on bank deposits,” the chamber added.

Ineffective management of financial resources at JSC FC ‘Shakhtar’ has led to a year-on-year increase in accounts payable, including wages, taxes, and other mandatory payments.

In general, as a result of the audit conducted, the total amount of identified violations of the legislation of the Republic of Kazakhstan reached nearly 5.3 billion tenge.

The audit commission has sent necessary recommendations to the audited entities and issued directives to rectify the identified violations.