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The effectiveness of the use of budgetary funds allocated to the Committee on Water Resources of the Ministry of Agriculture

Press release
12.12.15 Astana city

The site of the Accounts Committee for Control over Execution of the Republican Budget published a press release on the results of monitoring the effectiveness of the use of the national budget allocated to water development. Noting that the Committee for Water Resources, Ministry of Agriculture in the use of budgetary funds allocated for the construction and reconstruction of water facilities, allowed a number of serious irregularities and shortcomings. In this regard, we present you a detailed explanation of the Committee on Water Resources of the Ministry of Agriculture on the above facts.

№ p / p

Press Release of the Accounts Committee

Explanations WRC MA RK


  In connection with the transfer of functions of the Committee under the jurisdiction of the customer’s organization (RSE “Kazvodhoz”), monitor the implementation and acceptance of works on construction and repair of water facilities is practically not carried out by the Committee.

  Acts of executed works on Form 2B subscribed by employees of RSE “Kazvodhoz” with the appropriate skills, the ability to be physically present at the site and to check the quality and volume of construction works in the field.Employees CWR signed certificate COP 3 (ie, the financial part of the certificate of completion). All these forms of the Audit Committee relates to financial irregularities, and requires the volume and quality of work to certify the signatures of leaders of the two sectoral departments CWR authorized to sign. Territorial divisions of the Committee who are authorized to sign acts performed work in the regions there. The two heads of branch offices do not have the physical ability to be on all sites across the country, even in the event of secondment. This would have required a huge financial costs that the budget is not provided. Law is not forbidden to delegate subordinate organizations to function in terms of acceptance of works confirm the quality and quantity of work performed, as workers sign the financial part of the Committee’s acceptance of the executed works.


  Despite the sufficient allocation of budgetary funds, admitted the failure of the timing of 28 investment projects, extended for 6-48 months due to delays in the execution of contractual obligations by contractors.Measures to levy penalty for outstanding work in some cases were not taken.

  Until 2012, the volume of work performed (Form 2B) members of RSE “Kazvodhoz” field is not signed. Signed by the head of the branch 2 of the CWR. Committee delegate the functions of control and acceptance of the scope of work of their subordinate organizations, and they were not involved, although after the acceptance, the operation will be engaged themselves. The Chiefs signed volume control, without being able to control. Resulting in a lot of problem objects with numerous facts of embezzlement of budget funds, poor quality of work performed, the supply of low-quality equipment, and others. Of the 28 projects listed in the press release of the Accounts Committee of 25 projects continues to 2009-2011. As you can see, monitor the implementation and acceptance of works on construction and repair of water facilities was carried out by the Committee. Beginning in 2012, all the problematic objects remaining from the 2007 and 2011 years were completed.There were only five objects that are planned to be completed by July 1, 2016.Thus it is necessary to take into account that the cost of any project is not high cost.


  The implementation of a number of budget investment projects carried out in the absence of authorized body permission for construction and installation work. Revealed the facts of the construction work without the author’s support and technical supervision, and payment is not made of poor quality of work performed.

  At the beginning of the construction work required to notify authorities exercising State Architectural Control (Gask) contracts with the application of copyright and technical supervision. Then the bodies of state Architectural Control (Gask) card issued to notify the start of construction. In practice, the technical supervision of the contract are recorded later, respectively ticket is issued later. For this reason, captured such a procedural violation that does not affect the quality of work performed. Without the author’s supervision of the projects carried out unscrupulous designers such as LLP «OST-Project”, LLP «USB Group” LLP, “Food industry” and others. With respect to such organizations CWR conducted forensic handling complaints and without a court order is not possible to transfer their copyright to others. At the same time, due to the inability to stop the construction work, supervision free of charge (without a contract) was carried out by employees with appropriate qualifications Kazvodhoz. To obtain technical inspection conducted after determining the State purchases general contractor. The procedure for determining the winner takes a minimum of 3 months, continue to check the agreement between CWR and quality control Treasury also takes time. During this period, forced to perform these functions Kazvodhoza employees.


  Commissioned in December 2014 an object “United hydroelectric complex” Dostyk “on the river Khorgos connecting the main canals in the Panfilov district of Almaty region. Hydroelectric power plant at the end of the main channel of connection “worth 1.1735 billion. Tenge because of poor design, not function.

            In fact he’s not functioning because of design errors. It should be noted that the state examination of the project carried out by RSE “State Expertise” and approved by the Agency for Construction, Housing and Utilities.Therefore, in this case the fault of the Committee on Water Resources does not.


  Committee in 2014-2015 concluded agreements with RSE “Kazvodhoz” for the construction and overhaul of water management system without the application of the law on public procurement in the amount of 7.6 bln. Tenge.Selection of subcontractors, suppliers of equipment and materials RSE “Kazvodhoz” also carried out tender procedures. The fact of the conclusion, the Committee agreed with the contractor recognized by the court of unfair participants of public procurement.

  With RSE “Kazvodhoz” signed 9 contracts worth 7.0 bn. For the projects that were started in 2010-2011. other contractors. However, these contractors in 2012-2013. refused to continue working, while for further continuation of the work required to increase the amounts of finance (conversion price). Since these companies are currently under litigation. In view of the many trials and the need for early completion of construction work on these problem objects of the contract were concluded with the RSE “Kazvodhoz.” Otherwise, with the necessary additional procedures for recalculation of projects, making additional funds in the budget, and the other, the projects had to be postponed for 4-5 years, while spending much more money.


  It was noted that the Committee of Accounting virtually absent. Accounting functions were assigned to the employee not having the appropriate qualifications.Revealed the facts of concealment of accounts receivable and accounts payable totaling 407.6 million tenge, the distortion of accounting information, understating the cost of construction in progress and fixed assets 12 790.0 mln. Tenge.

          The structure has a CWR Management of Finance is obliged to maintain accounting records and ensure the maintenance of accounts receivable and payable, the balance sheet for banking fees.


  In connection with the weak organization of the legal service of the Committee admitted the facts of repeated failure to appear in court and untimely filing lawsuits against unscrupulous contractors work.As a result, 19 lawsuits Committee left without consideration by the courts.

      The State Committee has only 1 unit lawyer. Annually serviced 280-300 treaties and other agreements. Due to the huge amount of work and low wages there is a large turnover of staff. Due to the lack of applicants, as a lawyer often remains vacant. The result is a low level of legal work. The Ministry decided to send 3 lawyers from other parts of the Ministry of Agriculture to strengthen the work of the legal service of the Committee.

As seen from the above information, all violations to the amount of 73.1 billion. Tenge (49.6 million tenge in addition to payment of the amount of work without acknowledgment) are procedural which eliminated the signing, timely execution of various documents. These disorders are hardly reflect the efficiency and effectiveness of budget expenditures. No damage, theft, abuse injures the State, public property, the budget. The volume and quality of work fully comply with all building codes.

Committee on Water Resources of the great work on the efficient and economical use of budgetary funds. Since 2012, we analyzed the set of implemented and proposed to implement projects. We offer you a summary table of the results of optimization projects:

name of the project

The estimated cost of the project, mln. Tenge

Estimated cost after optimizationmillion. tenge



Reconstruction Bulaevskii group water RMS




A complete inventory of all the people’s congresses. Excluding unpromising villages.Clarification volume of water consumed, the cost of materials. and other optimization measures.

Reconstruction of Ishim group water RMS




Reconstruction Sokolovsky group water RMS




Reconstruction Presnovskogo group water RMS




Reconstruction and modernization of HS Kokshetau Akmola. region.

55 302.7

18 624.1

35 678.6

Reconstruction Belovodsk group pipeline Pavlodar region

5 554.9

3 552.4

2 002.5

Reconstruction of the Aral-Sarybulak group water pipeline

21 100.0

6 015.0

15 085.0

Renovation and improvement of seismic stability of the dam reservoir Bartogay. In Almaty region

9 000.0

1 300.0

7 700.0

Excluding the types of work that do not affect the operation of hydroelectric(mehochistka sludge)

Reconstruction and modernization of buildings Astana reservoir with the introduction of water metering and automation vodoraspredleneiya in Akmola region

31 605.8

2 750.0

28 855.8

Exception types of work(just an enclosed reservoir)


407 521.4

89 241.5

318 280.1


State water management programs adopted in 2014 under the orders of the President of Kazakhstan Nursultan Nazarbayev, has been carefully analyzed and optimized: 


U measurement

Before adjustment(05.05.2014 years)

After adjustment (Project 2015)

Budget expenditures




Input sought but not used by irrigated land (due to the destruction of canals and other hydraulic structures)




Saving Water

billion m3



Accumulation of surface water

billion m3



The table shows the main indicators. All other indicators of previous program is not reduced. Many indicators of direct and outcomes become clearer and more specific.

Optimization of the State program is made possible thanks to the tremendous work of experts RSE “Kazvodhoz”, Committee for Water Resources, the structural units of the Ministry of Agriculture, scientists and veterans of the water industry. It should be noted that no additional financial cost was not.

All the above work shows the desire of the Ministry of Agriculture for the efficient and economical use of budgetary funds.

Optimization projects of the State program deserves special attention, study and dissemination.

In our opinion, the Accounts Committee had to carefully examine this experience and encourage other public bodies to apply. During the 3-month test group of analysts from among more than a dozen people had the opportunity to complete a desired, useful and necessary for the state to work in today’s time of crisis !!!

From this work, in our opinion, it would be much more useful for the people and the country.

KVR MSH RK (33.7 Kb) 

Press service of the Ministry of Agriculture 
+7 (7172) 555-765 

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