Kazakhstan needs to reform quasi-state sector - Ablay Myrzakhmetov
Chairman of the Board of Atameken NCE RK noted that only the administrative costs of the Baiterek National Management Holding exceeded KZT 54 billion.
Chairman of the Atameken National Chamber noted that the Government has announced the optimization of expenses. According to him, the President’s State of the Nation Address ‘100 Concrete Steps to Implement Five Institutional Reforms‘ contain instructions to reduce the number of enterprises in the quasi-state sector.
"The position of Atameken is that the reform of the quasi-sector should be carried out right now. Yesterday we expressed this position. I don't see any sense in existing of the Baiterek National Management Holding. It has DAMU in its structure. I wanted to say that we are partners with the DAMU, we work on many programs, but many functions coincide. We have the same Business Service Centers. There is no sense in duplicating. It is possible to combine efforts here, we can take control of Damu to save money and, achieve synergy with Damu," Ablay Myrzakhmetov said.
According to him, the Development Bank of Kazakhstan could become an operator of import substitution policy, work with large infrastructure projects and make decisions on behalf of the Government on collaterals for banks and other issues. Chairman of the Atameken NCE RK proposed to hand over ZhilStroiSberBank JSC to the Ministry of Industry and Infrastructure Development of Kazakhstan.
According to Myrzakhmetov, the annual administrative expenses of the Baiterek with its 11 subsidiaries make KZT 54 billion.
Remind that on January 24, during the Enlarged Session of the Government of Kazakhstan President Kassym-Jomart Tokayev noted that the streamlining of the quasi-state sector is an important direction of the Government. According to him, from 2007 to 2018 more than KZT 7 trillion were allocated to state holdings in total, and the Accounting Committee identified several system problems, such as duplication of functionality, inflated structure, and states. Baiterek Holding has 63 organizations, including 11 subsidiary companies with 2,800 employees. Administrative expenses of Baiterek in 2018 exceeded KZT 54 billion, KZT 24 billion was spent on salaries.
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