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Mineral resource companies to pay 2.7bn tenge as penalty for non-transparent procurement operations - oil ministry

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K. Safinov, Executive Secretary of Kazakh Ministry Oil and GasAtyrau. November 12. Interfax-Kazakhstan - The mineral resource companies operating in Kazakhstan will pay a total of 2.7 billion tenge (150.79/$1) in fines for violations of the procurement procedures, said Kanatbek Safinov, the executive secretary of the Kazakh Ministry of Oil and Gas.

“The ministry monitors all procurement operations for compliance with the applicable regulatory requirements on a regular basis. This year we have collected 127 million tenge in fines paid by the companies that failed to ensure the required level of the Kazakh content in their procurement programs. The fines were paid for the first time since we started monitoring. We have also imposed fines totaling 2.7 billion tenge on those companies whose procurement processes are not transparent,” he said in Atyrau at a meeting of the coordination council for science, innovations and Kazakh content development.

Safinov believes that the large mineral resource companies should order more goods and services from the local producers.

“According to our calculations, a one percent increase in the Kazakh content by the oil and gas companies will bring domestic manufacturers additional 15 billion tenge worth of orders for their goods and services,” he said.

WKT citing

November 13 2012, 15:58

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