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Bread with a 153% markup was supplied to a children's home in the Almaty region

Submitted by Вера Александрова on

The Financial Monitoring Agency (AFM) has uncovered facts of procurement of socially significant food products (SSFPs) at inflated prices in the Almaty region at the Centre for Supporting Children in Difficult Life Situations

According to the agency's press service, more than 120 minor children are currently being raised at the Centre. The Agency found that a supplier, purchasing bread for 140 tenge, was supplying it to the orphanage for 354 tenge (a markup of 153%)

Furthermore, children were supplied with buckwheat groats – with a markup of 145% (687 tg/kg versus 281 tg/kg), sunflower oil – 63% (977 tg/l. versus 600 tg/l.), and granulated sugar – 38% (480 tg/kg versus 350 tg/kg)

It is noted that, according to current legislation, the maximum trade markup on SSFPs must not exceed 15%

As a result, the supplier was brought to administrative responsibility, and the prices under the supply contract concluded with the Centre were reviewed, reducing them by 1.3 million tenge.

"Also, as part of the measures taken by the Agency, a number of kindergartens in the region concluded additional agreements with suppliers, reducing purchase prices by 3.9 million tenge," the statement reads.

Recall that previously the AFM reduced the purchase cost of food products from the SSFP basket in the East Kazakhstan Region. It then emerged that the State Institution "Centre for Supporting Children with Special Educational Needs" of the East Kazakhstan Region Education Department was purchasing SSFPs at inflated prices from an entrepreneur. As a result, the purchase cost of carrots was reduced by 35% (from 325 to 242 tenge), and cabbage (from 380 to 238 tenge) by 60%. 

In addition, in April last year, the AFM in the Karaganda region identified an excessive markup on eggs and reduced prices for potatoes. Besides this, the agency uncovered inflated prices for sugar in Zhezkazgan, for rice in the Kyzylorda region, and for kefir in the Abay region.