The Accounts Committee of Kazakhstan continues to walk in the footsteps of activity of Asylzhan Mamytbekov during his tenure as Minister of Agriculture. The next meeting on Thursday, November 24 was dedicated to the failure in the performance of “Agribusiness 2020” program. It turned out that the planned activities were not carried out, and billions of tenge were spent inappropriately.
In September this year, the head of state instructed the current Minister of Agriculture of Kazakhstan Askar Myrzakhmetov to develop a new strategy of development of agrarian sector of the country, reminds the correspondent of the “KazakhZerno.kz” edition. In early November, the concept of the state program of development of agrarian and industrial complex for the 2017 – 2021 years was presented.
Many have a question – what for? As launched with fanfare in 2013 “Agribusiness 2020” is still far from the final. Well, the conclusions of the Accounts Committee on the results of the state audit of the first phase (2013-2015 years) of the program provide a definite answer to this question: during 3 years in the framework of “Agribusiness” was done so little and so badly that it is easier to start over than to try to remake initially non-viable creation of the former team of the Ministry of Agriculture.
Namely: The Accounts Committee found that over 74% of the indicators of the results of the Program are not achieved; more than 49% of event are either not carried out, or partially carried out.
Failure points
Where namely failed the agricultural department? In the most important thing! During all five years of Asylzhan Mamytbekov as the Minister was asked by ordinary peasants to provide affordable loans, leasing of machinery and equipment, funding of costs. So, more than half t of indicators to increase state support for agribusiness entities was not achieved. We ask a naive question: why? Huge money was sent to the industry. The answer is clear; it is in the policy of the previous Minister of Agriculture of the Republic of Kazakhstan on inflation of inefficient agricultural holdings giants with the budget funds. The President, on September 1, during the joint sitting of the Parliament spoke ambiguously about it.
– Every year huge amounts of money are injected in the agricultural sector, which does not always pay off and come back. Debts grow at these companies. It could be a long time bankrupted. We do not do it, postpone debts, they grow. One day this bubble will burst, – said the President.
Illustration of these words is contained in the presentation of the concept of the new state program of development of agrarian and industrial complex of the Republic of Kazakhstan: in 2015 through the holding “KazAgro” (which manages all financial injections to the AIC) it was issued 203 billion tenge to 15 thousand of borrowers. At the same time, 50% of funds went in favour of just 1% of borrowers. This “golden percentage” – are those very holdings that instead of effective work just grow their debts.
Moreover, the Accounts Committee also recognized the work of the Ministry of Agriculture on attraction of investment to the industry – non-government credit funds (not achievement of more than half of target indicators) as a failure.
At the same time, as discovered the Accounts Committee, in “Agribusiness 2020”, in principle, there were no target indicators to improve the level of food import substitution and increase the export potential of domestic products! And if there were no indicators, than the Ministry of Agriculture did not take action in this regard at all. But today these two areas identified as priorities, and the whole concept of the new state program is based on them.
Crooked finance
The Accounts Committee identified several reasons for not achieving the indicators. All of them can be combined under one capacious concept of “chaos”: poor planning, weak information and consulting support, the presence of contradictions and gaps in the regulatory and legal acts, the artificial complexity of the used procedures of subsidization. The question is: why did the Ministry of Agriculture was to create a swamp? Because of stupidity or due to the incompetence? Of course, no. The answer is as old as the world: It is always easier for the officials to fish in the muddy waters. It is no coincidence that the Ministry of Agriculture of Kazakhstan in recent years has consistently held a leading position in the ranking of corruption. And the recent scandal with the Head of the Committee of veterinary control and supervision of the Ministry of Agriculture Saktash Khasenov, who was caught on a bribe, is an example of this.
It’s time to move on to counting money, which served not for the good of farmers.
During the state audit it was found that in the planning of budgetary expenditures for the implementation of activities of the program “Agribusiness 2020” for 2013-2015 was not ensured completeness and accuracy of the calculations for the total amount of 28.8 billion tenge.
Despite the fact that in 2014-2015 for carrying out diagnostic veterinary measures was spent 18.6 billion tenge, annual growth of foci of acute and chronic infectious diseases of animals remain the same. At the same time, the budget for compensation of damage to agribusiness entities associated with the destruction of diseased animals for the years 2013-2015 amounted to 3 bln. tenge.
Constructed without consideration of the needs the second floors of the 75 regional veterinary laboratories with the total area of 19.6 thousand sq. meters in the amount of 4.4 bln. tenge are not used. Initiated in 2011-2012 construction of 12 laboratories in the East Kazakhstan and Karaganda regions with the cost of 900 million tenge is discontinued. The question of further use in the regions of 89 vacant buildings of laboratories of a total value of 400 mln. tenge has not been resolved yet.
At the same time in 2014-2015 about 9.6 bln. tenge allocated to subsidize the cost of fertilizer, seed development, as well as material and technical equipment of state veterinary organizations were redistributed by local executive bodies for other purposes.
In general, according to the results of government audit of the performance of the program “Agribusiness 2020” in 2013 – 2015 the Accounts Committee revealed financial violations totaling 21.5 billion tenge; inefficiently used budget funds and assets – 53 billion tenge.
Program loss
What such “successful” government support for the agriculture resulted in?The Accounts Committee listed a few identified weaknesses of the industry:
– Insurance coverage in crop production is reduced each year. The severe climatic conditions of Kazakhstan, lack of insurance reserves farmers face to face with nature and sooner or later leads to losses;
– Chemical treatment of the soil against diseases of cereal crops is carried out only on 30-40% of arable land; as a result of the contamination of the area remains at a high level. The reason is clear: almost all agricultural chemistry is now imported into Kazakhstan. Prices are high, and in the absence of the state support, not everyone can afford such treatment. This leads to the fact that Kazakhstan is losing from weeds and pests about 10% of the crop annually. That is to say, more than 2 million tons of grain!
– There is an annual reduction in the area sown with cotton. And this despite the fact that constantly we talk about the need for diversification of crops and expansion of irrigated areas;
– Study of imported products to ensure food safety is carried out, covering only 5.6% of its volume. In addition, these foods such as milk and dairy products, eggs and egg products, has not been subjected to medical research at all;
– Rules governing the required number of veterinary laboratories in the region, logistical and human resources to ensure the completeness of coverage and quality of research have not been developed.
As a result of the state audit the Accounts Committee instructed the Ministry of Agriculture to take measures to address identified deficiencies, the causes and conditions that contribute to them, as well as to consider the responsibility of officials for violation of applicable law.
Separate control materials were sent to the competent authorities, who will decide on the need for the excitation of administrative cases.
Akyn Aulov
“KazakhZerno.kz” newspaper
