Almost 600 criminal cases instituted for embezzlement of budgetary funds - Kazakh Finance Ministry

19 September, 2018, 10:01 421
Almost 600 criminal cases instituted for embezzlement of budgetary funds - Kazakh Finance Ministry

Such statistics were announced by the Ministry for 8 months of 2018. 

 

Over 8 months of the present year, about 600 criminal proceedings have been instituted for the embezzlement of budgetary funds, according to a press service of the State Revenue Committee of the Kazakh Finance Ministry.  

"The Economic Investigation Service of the State Revenue Committee of the Kazakh Ministry of Finance takes measures to prevent and reveal the embezzlement of budgetary funds on an ongoing basis, including in the quasi-public sector. Thus, 597 criminal cases relating to the embezzlement were have been closed by the Committee," the press service's report says. 

According to the Ministry, in accordance with the current Criminal Code of the Republic of Kazakhstan, once the person manages embezzled funds, turns them into his or other persons' advantage, it is considered as embezzlement. However, before this moment the offense is considered as the attempt on embezzlement. 

Embezzlement of state funds can be done in various ways: misappropriation or embezzlement (Article 189 Kazakhstan's Criminal Code), fraud (Article 190 Kazakhstan's Criminal Code), illegal loan receiving and misusing loan funds (Article 219 Kazakhstan's Criminal Code).  

In addition, embezzlement of budgetary funds can be conditionally divided into 3 main categories: 

1) While implementing investment projects; 

2) While disbursing loans;

3) While public procurements. 

Experience has shown that the most spread ways to embezzle public funds are: by considerably increasing the cost of the project; the inclusion of the works that have not been implemented into admission and transfer acts; to provide loans on concessional rates of interest; subsidy and loan frauds by counterfeiting documents and accounting; procurement of commodities, works and services is held in accordance with the agreed, as a rule, exaggerated prices in advance through some false enterprises; the winners of procurements are those individuals or legal entities that have been defined in advance.     

"The driving force behind embezzlement of state funds is corruption that can be found in a majority illegal deeds of economic nature. It is because such embezzlements are committed, as a rule, as or while implementing legal economic operations. In turn, such offenses can be done or ordered by those who hold an official position," they said in the Committee. 

According to the Finance Minister, conditions affect embezzlement of budgetary funds, they include the factors facilitating criminal offenses, such as neglected bookkeeping, the absence of specialists needed in government agencies and so on.