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Accounts Chamber reveals multimillion violations in Bishkek FEZ

Accounts Chamber revealed numerous violations during an audit of the work of the General Directorate of Bishkek Free Economic Zone (FEZ). Press service of the Accounts Chamber reported.

During construction of an external sewage network of an enterprise of Bishkek FEZ subject, overstatement of the construction and installation works for 980,000 soms by contractor was revealed.

Audit materials were sent to the State Committee for National Security. In addition, violations in public and other organizations for 7.4 million soms, reserves and budget losses — for 6.7 million soms were revealed.

The audit notes inefficient use of available land, buildings and structures. Thus, 33 percent of the land available on Ak-Chiy Bishkek FEZ territory was not developed; Kara-Balta FEZ — 96.97 percent; five buildings with a total area of ​​3,639.8 square meters in the General Directorate are empty.

At the same time, there are 16 subjects in FEZ with which contracts for the lease of land plots for a period of 80 to 98 years have been previously signed. However, the lease terms violate the Land Code, which allows lease up to 50 years.

There are no acts of commissioning of 59 facilities of the Bishkek FEZ with a total area of ​​37,429.1 square meters.

Due to provision of larger land plots than it is specified in the contracts, income losses for 2015-2017 amounted to $ 1,043.7 for four subjects of Bishkek FEZ. Three subjects of Bishkek FEZ were additionally charged $ 7,561.2 for using the premises without signing a lease agreement.

One of the companies using the land area of ​​1,159.16 square meters does not pay for the rent of premises and land.

«For the second half of 2016, contributions to the republican budget in the amount of two percent of the revenue amounted to 3 million soms, for 2017 — 3.7 million. According to the results of an inventory, as of the end of December 2017, excess inventory values ​​were found at kindergarten No. 168 on 125 items, on fleet — 6 items, Kara-Balta subject — 31 items, Ak-Chiy subject — 6 items. It is allowed to write off inventory items without proper clearance. The fact of writing-off of costs for acquisition and expenses for the repair of fixed assets and intangible assets in the amount of 6.9 million soms was registered,» the message says.

The General Directorate purchased inventory items without conducting state procurement procedures in 2016 for 27.8 million soms, in 2017 — 19.9 million.

In addition, there were recorded facts of signing contracts for the supply of goods after the expiration of the tender application in four cases for 1.5 million soms, signing contracts without specifying the contract execution terms — for 0.4 million.

«Following the audit, the prescriptions and recommendations were drawn up, which were sent to the General Directorate of the Bishkek FEZ. The audit report has been sent to the Parliament, the Presidential Administration, the Government and the Security Council secretariat,» the Accounts Chamber said.