State auditors have uncovered financial violations amounting to 18.7 billion tenge in the wastewater management sector, reports the Kapital.kz business information center, citing the press service of the Supreme Audit Chamber.
"The results of the audit on the effective use of budget funds and state assets in the wastewater management sector were discussed at a meeting of the Supreme Audit Chamber chaired by Alikhan Smailov. The state audit revealed a range of deficiencies in the wastewater sector, including inconsistencies in the actions of authorized bodies, gaps in the regulatory framework, lack of quality monitoring and reliable operational data, low levels of automation and digitalization, and inadequate development of investment projects, among others," the SAC reported.
The low level of utility payments and low local tariffs pose risks of underfunding infrastructure, the chamber notes. Additionally, the absence of a unified approach to the collection, processing, and aggregation of information leads to discrepancies in data regarding the length of networks, the number of wastewater treatment plants (WWTPs), and emergency sections, according to state auditors.
According to the SAC, new construction, modernization, and reconstruction of WWTPs are required in 67 cities across the republic, with 27 cities lacking them entirely. There is a noted imbalance in the distribution of funds among regions. For instance, the largest funding volumes are directed to Astana, Turkestan, and Almaty regions, despite the higher degree of wear and tear of engineering networks in Karaganda, Pavlodar regions, and Ulytau.
An examination of 27 complex wastewater projects in Kazakhstan was conducted by organizations lacking the necessary rights, which contradicts legislation. For 15 projects in Turkestan, Karaganda regions, Shymkent, and Astana, deadlines have been violated, and in some cases, no re-examination of the adjusted project documentation was conducted. Overall, the cost of implementing 35 wastewater projects increased by 70 billion tenge as a result of adjustments – from 109 billion to 180 billion tenge.
It has been reported that inconsistencies in actions and low oversight lead to the idling of certain facilities. For example, the reconstruction project of the wastewater treatment facilities in Priozersk, Karaganda region, costing 1.9 billion tenge, has been idle since 2017 with 98% completion. In Turkestan and East Kazakhstan regions, six commissioned wastewater treatment projects worth 5.6 billion tenge are idle due to the absence of sewage networks. At the meeting, the chair of the SAC emphasized that without the development of a unified information system in the housing and communal services sector, the discussed problems will remain relevant.
"Without digitization and reliable information, you cannot effectively plan expenses. It is essential to see the entire picture: across the country, by region, and by types of infrastructure. The most critical issues should be addressed first. Without quality monitoring, you are essentially working blindly: you deal with whichever region comes to you first. This is incorrect and inefficient," said Alikhan Smailov, addressing the staff of the Ministry of Industry and Construction.
Overall, the audit results established:
- financial violations amounting to 18.7 billion tenge;
- ineffective planning of budget funds and assets – 23.4 billion tenge;
- their inefficient use – 26.7 billion tenge.
Potential losses and missed profits amount to 17.3 billion tenge, reports the SAC.
State auditors identified 59 systemic deficiencies and 277 procedural violations. Efforts to rectify these issues will remain under the supervision of the Supreme Audit Chamber until fully resolved.