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22 February 2007
Today the next sitting of the Security Council of the Republic of Kazakhstan was held under the chairmanship of Head of State Nursultan Nazarbaev.

A project of the National Security Strategy of the Republic of Kazakhstan for the medium-term outlook and also the implementation course of the orders given by the President at previous sittings of the Security Council were considered at the sitting.

Security Council Secretary Berik Imashev informed the sitting’s participants about the major priorities and objectives of the National Security Strategy Project of the Republic of Kazakhstan for the medium term outlook. It was noted that increasing economic and political possibilities of Kazakhstan allow ensuring protection of interests of personality, society and state at a new higher level.

As the Head of State has emphasized, the new Strategy takes into account the most problematic aspects of our development and will assist to achieving the ambitious targets and aims of our country in the nearest future.

While discussing the second issue on the agenda, the Head of State noted that the task of accession to the number of the 50 most competitive countries in the world would require a tough anticorruption fight, high responsibility and discipline of the state organs.

- The issue of fight against corruption will always remain under my personal supervision, - the President underscored.

In recent time the Security Council has significantly reinforced its coordinating role in the fight against corruption and ensured the adoption of a variety of systematic measures of legislative, institutional and organizational nature. The trust level of the people to the state organs has been successfully raised on the wave of social resonance, and numerous addresses of citizens and organizations demonstrate this fact.

At the same time, the President of the country focused the attention of the members of the Security Council on the fact that there is no radical change in the situation in this area yet. It was not rare that fight against corruption was of a declarative nature. Flagrant cases of neglecting service duties by officials, namely infection of the children with HIV in the South Kazakhstan province, numerous offences in the housing area, lack of control in using salary fund by some national companies, problems with ensuring road traffic safety were presented at previous sittings of the Security Council.

A number of orders given at earlier sittings of the Security Council last year have not been fulfilled by some state organs.

According to the data submitted by the law-enforcement organs, a variety of new crimes are being investigated now.

Prosecutor General Rashid Tusupbekov, who delivered speech at the sitting, focused the attention of the sitting’s participants on serious offences committed during the implementation of the State Program for developing housing construction and presented a number of concrete precedents.

For example, in Uralsk flats that had been allocated to socially protected strata of moderate means were given to 72 workers of state organs. In Pavlodar 53 flats were sold to workers of the “Kazakhstan Aluminum” JSC, who were not amongst the persons having the priority right to obtain the flats. At the same time 80 citizens having the priority right to obtain the flats have got an unreasoned refuse.

150 cases of illegal realization of mortgage housing have been revealed in Almaty, including the facts when 85 persons obtained flats as education workers using fictitious documents, 22 as medical workers and 43 as workers of other state organizations.

Similar offences have been revealed in the Atyrau, Zhambyl and Aktubinsk regions.

All these caused the indignation of the country’s President:

- The State makes all efforts and allocates funds in order to offer housing to those, who really need it. And state employees, who have a flat or a house, buy inexpensive housing at the expense of the state in the shameless manner. How could those people behave in such a way?

- We develop the program for building inexpensive social housing in order to offer it to those who really need it. The disabled, low-paid persons and families having many children need inexpensive housing. And who get this? Is there any control at local level? What do akims of regions and cities, which must prevent the offences, really do? Why these facts are not known in regions? – the Head of State said.

The Prosecutor General named other revealed offences in the area of land relations, tax practice, and custom activities.

For example, the NSC investigated the criminal case of mister A, the director of the Almaty housing department, who was accused of bribe-taking for the accelerated issuing of documents and granting of flats out of turn in the framework of the State Program for housing building. The case has been submitted to public prosecution with an accusative conclusion.

Facts of bribe-taking by officials have been revealed also in the framework of the campaign for property legalization, which is being conducted in the country. Mister C., the vice governor of the Auezov district of the city of Almaty is under investigation. The case of deputy akim mister C. of the Western Kazakhstan region has been submitted to public prosecution in order to bring before the court.

The speech by Chairman Sarybay Kalmurzaev of the Agency of financial police also contained a massive set of concrete facts.

In his opinion, the Tax Code allows custom officials to voluntarily choose the estimation means of transporting goods, and in practice this results in the decrease in custom payments and at that responsibility lies with the person transporting goods.

S. Kalmurzaev reasoned his words with the following fact. In the period of four years custom organs in the Aktubinsk region did not perform post-custom control of the “NEK” Ltd, which is a custom broker, and 28 thousands of registered custom declarations were not checked at all. The audit and custom check-up that was prescribed by the Agency revealed facts of direct avoidance of tax and other payments to the sum of 1.6 billion tenges. It must be noted that the region’s custom committee did not check the activities of the organization for eight years.

Existing appeal procedures of custom control’s results by taxpayers, when their consideration is performed only by the higher organ of custom service, create favorable conditions to corruption at each level of appeal proceedings.

For example, from August 2003 KZ-Consult Ltd, whose founder and director mister K is currently deputy chairman of the Tax Committee, offers on a contractual basis so called consult services of returning VAT from the republican budget to large taxpayers, which are monitored at the republican level. Remuneration for these services was 10 percents of the sum returned from the budget. The total amount or the remuneration received from four large taxpayers, which have a contract with the mentioned organization, was at 3.5 billions of tenges in 2006.

One more example. In 2005-2006 Transstoymost JSC received 6.5 billions of tenges from the republican budget for building a road junction in the city of Almaty, and, as it was revealed only at the initial stage of investigation, 452 million tenges were stolen through fictitious enterprises.

All these, in the opinion of S. Kalmurzaev, are results of the permissiveness and impunity corrosion.

On the whole, the work of law-enforcement and special organs, which must fight corruption, is characterized with the following statistical data.

2005 corruption crimes were revealed by all law-enforcement organs in 2006, what is a figure greater by 33.2% than it was in 2005 (1505).

1221 corruption crimes were revealed by the financial police, 328 - by organs of the National Security Committee, 321 - by prosecutors, 113 – by interior organs, 3 - by custom.

The intensified work of the National Security Committee must be noted in revealing corruption crimes.

477 persons, who had committed corruption crimes, were convicted by courts of the republic.

It is necessary to note the effective enough work of law-enforcement organs in fighting corruption. However, the efforts of only power organs will not be enough. In this connection tasks on introducing legislative norms were set at the sitting in order to prevent the situations, when an official can use their service post for solving personal problems.

On the results of the sitting the Head of State gave corresponding instructions to the Government and state organs.

Commission for issues of fight against corruption and abidance by service ethics by state employees, Agency for state service affairs were charged with the task to develop in three months suggestions on amendments and additions to the legislation, which relates to prevention of interest conflicts and situations in which an official can use their service post for personal purposes.

It was prescribed for the Government to complete the work on preparation of state service standards, and determine criteria of rating estimation of the activities of state organs’ chiefs in three months.

The President commissioned the Industry and Trade Ministry with the task to provide additional measures on eliminating administrative barriers for business, especially at the stage of developing normative acts concerning interests of business, in the framework of developing the law “About private entrepreneurship”.

In the framework of the implementing program “Astana is a city without drugs” Ministry of Education and Science was commissioned with the task to introduce a special study program for forming a stable aversion of drugs, alcohol and smoking amongst youngsters of the capital’s education organizations starting from the new study year of 2007.

While summarizing the outcomes of the sitting Nursultan Nazarbaev said:

- There are those persons here, who make decisions and fight against this evil. We must defeat corruption. We have got a Law and necessary legislative base. But, first of all, the honesty of high officials is the warranty that we will succeed in this matter.

- The fight against corruption and bribery is the business of all Kazakhstani people. We cannot solve this problem by means of only law-enforcement organs, forces of state service and controlling organs. All our people must participate in this process, - the Head of State underscored.

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