Monitoring of the activities of Konayev Social and Entrepreneurial Corporation JSC (SEC) has been completed in the Almaty Region, conducted by the Department of the Agency for the Protection and Development of Competition of the Republic of Kazakhstan (APDC). The inspection showed that the company engaged in activities related to issuing loans to agricultural entrepreneurs without coordination with the antimonopoly authority.
WHAT THE ANTIMONOPOLY AUTHORITY'S MONITORING REVEALED
According to the APDC Department for the Almaty Region, the monitoring established that SEC Konayev was providing loans to agricultural entrepreneurs. Financing was carried out under the Auyl Amanaty programme and was linked to a financial leasing mechanism.
However, this corresponding expansion of activities was not previously coordinated with the antimonopoly authority.
LEGISLATIVE REQUIREMENTS
As the department explained, Article 192 of the Entrepreneurial Code of the Republic of Kazakhstan (“Grounds for State Participation in Entrepreneurial Activities”) stipulates that the expansion or change of types of activities of organisations with state participation is permitted only with the consent of the antimonopoly authority.
This provision exists to prevent possible violations of the competitive environment and to control the activities of state-owned companies in the market.
WHAT MEASURES WERE TAKEN FOLLOWING THE INSPECTION
Based on the results of the monitoring, the APDC Department for the Almaty Region issued an order to SEC Konayev to eliminate the identified violations.
The department reported that the order has now been complied with. Additional details regarding the nature of the changes made are not specified in the materials.