Livestock farmers from North Kazakhstan Region (NKR) have appealed to the regional Chamber of Entrepreneurs after JSC «SPC «Soltústik» demanded the early repayment of concessional loans totalling 13.8 million tenge. The basis for this was the results of a state audit, which deemed the sale and slaughter of purchased livestock to be misuse of funds.
WHAT CAUSED THE DISPUTE
According to Inbusiness.kz, appeals were received from three individual entrepreneurs — IE Bakhadir, IE Tіleuzhan and IE Sabokhat. All are migrants from the southern regions of the country and received financing in 2023 through JSC «SPC «Soltústik» for livestock development.
According to the materials, IE Tіleuzhan received 2.92 million tenge to purchase eight head of cattle, IE Bakhadir received 8.6 million tenge to purchase 13 horses and feed, and IE Sabokhat received 2.3 million tenge to purchase five head of cattle and feed.
According to the head of the department at the Chamber of Entrepreneurs, Aidos Kenbeilov, the borrowers purchased the animals within the specified period and confirmed the intended use of funds with the necessary documents. However, the subsequent sale or slaughter of the livestock was deemed by the NKR audit commission to violate the terms of using state funds.
POSITION OF THE ENTREPRENEURS
The Chamber of Entrepreneurs believes that the farmers fulfilled all their obligations under the loan agreements. Specifically, they timely provided sale and purchase agreements, acceptance certificates, receipts and veterinary passports.
According to Aidos Kenbeilov, the loan agreements did not contain a prohibition on the subsequent sale or slaughter of animals after the intended use of funds had been confirmed. Furthermore, the entrepreneurs have no overdue loan arrears.
WHAT THE SPC SAYS
The head of department at JSC «SPC «Soltústik», Talgar Zhumabekov, stated that the demand for recovery of funds is related to an order issued following inspections by regulatory bodies.
According to him, initially the SPC had no complaints against the borrowers, as they had fulfilled the terms of the contracts and were servicing the loans without arrears. However, following an inspection by the Supreme Audit Chamber (SAC), the company was ordered to take the matter to court and demand full repayment of the funds.
Talgar Zhumabekov also noted that stricter conditions regarding the preservation of livestock numbers were only included in contracts in subsequent years. In the contracts from 2023, the main requirement was the utilisation of funds within 90 days and confirmation of their intended use.
ARGUMENTS OF THE MEETING PARTICIPANTS
The issue was considered at a meeting of the Council for the Protection of Entrepreneurs' Rights and Anti-Corruption. The Chairperson of the Council, Inessa Kuanova, stated that livestock farming involves generating income from the sale of products, and therefore the sale or slaughter of animals is part of economic activity.
Meeting participants also noted that the relevant Rules for Organising and Financing Measures to Promote Entrepreneurial Initiative, approved by the Ministry of Agriculture, in their opinion, do not contain a direct prohibition on the sale of reared livestock.
WHAT OPTIONS ARE BEING CONSIDERED
Following the discussion, the Chamber of Entrepreneurs and the Council proposed recommending that JSC «SPC «Soltústik» withdraw the demands for early loan repayment.
If the dispute proceeds to court, representatives of the Chamber of Entrepreneurs intend to participate in the process on the side of the farmers.