Vice-premier of Kazakhstan says state enterprises are managed poorly

/IRBIS, Dec.12, 00/ - According to REUTERS, deputy premier minister of Kazakhstan, Erjan Utembaev, believes that industrial management of the republic's state enterprises and national companies is not effective and suggests to conduct financial auditing. He said that all bad management of the industrial ministries resulted in big losses for the budget. Such policy does not stand up to any criticism and it is necessary to create interagency government commission on financial auditing of the companies, because there is no trust in this system, he said. One of the country's three republican enterprises, Kazaeronavigatsya, was discussed at today's government meeting. Premier minister believes that this enterprise did not conduct correct borrowing policy, which contradicted its financial resources. In addition, Mr.Utembaev said the administration of the Ministry of transportation and communication had made the company to pay off the debts of other national companies, causing the aerial navigation specialists to raise the tariffs on their services, was said. As the head of Kazaeronavigatsya, Sergei Kulnazarov says, the company has KZT1.5 bln of accounts receivable. It is in addition to the debt of Air Kazakhstan as of October 1, 2000, including fines, equaled $2.5 mln. Mr. Kulnazarov says that the company will pay off its debt to Kazaeronavigatsya within six years, including two-year favorable period. It is said that Air Kazakhstan is now under the management of Kazkommertsbank. On Monday the parliament deputies are said to have been discussing the Kazakhstan Temir Joly (railroads), which also offered financial support to national air carrier by the insistence of the former minister, and did not get back any money. Prime minister said that these three national companies with 100% state's stake should be under a full control of the government and that necessary amendments to the law on joint stock companies had to be made. He clarified that the government should control the budget, the expenses and the borrowings. Otherwise the state may be lost and the first one to be checked is Kazaeronavigatsya, he said. Kazpost OJSC and Kazakhstan Temir Joly OJSC both have national state enterprise status. There are several other national companies where the state has 100% stake, such as Kazakhoil and KEGOC.