The director of Bal halal LLP is suspected of embezzling KZT 945 million allocated for the commercialisation of scientific developments. The company received more than one billion tenge for the production of innovative pasta products and fortified flour. The suspect is in custody.
HOW THE COMPANY OBTAINED FINANCING
According to the Agency for Financial Monitoring (AFM), in 2023–2024 Bal halal LLP received KZT 1.15 billion from Science Fund JSC for the implementation of four projects.
The money was intended for the purchase of equipment, preparation of premises, acquisition of raw materials and the launch of production of pasta products from plant-based raw materials and flour fortified with micronutrients.
However, investigative experiments showed that the purchased equipment was not capable of producing the products envisaged by the projects.
HOW THE MONEY WAS SYPHONED OFF
According to the investigation, SMART 15 LLP, registered to affiliated persons, was used to syphon off the funds. Under the guise of payment for equipment and services, KZT 736.4 million was transferred to the company's accounts.
Fabrika Reklamy Shymkent LLP, Jana tan LLP and Sisters Brand KZ sole proprietorship also took part in the alleged scheme.
The investigation established that after the funds were cashed, the suspect deposited KZT 88.5 million into Bal halal's accounts. This money was presented as the company's own contribution to the financing of the projects.
HOW THE SCIENCE FUND MONITORED THE PROJECTS
According to the AFM, control over the use of state funds was formal. Members of the monitoring groups signed reports without visiting production facilities or checking the work performed.
At the same time, the documents were prepared by Bal halal employees themselves, and representatives of the monitoring groups signed them. In this way, the appearance of control over the spending of money was created.
WHAT DAMAGE THE INVESTIGATION ESTABLISHED
The total damage, according to the investigation's assessment, amounted to KZT 945 million.
The company's director is in custody. The court also authorised the seizure of the suspect's property worth KZT 830 million.
The seizure covered five land plots, four cars, a flat in Astana, a commercial premises and jewellery.
The investigation has been completed. The AFM is not disclosing other details of the case, citing Article 201 of the Criminal Procedure Code of the Republic of Kazakhstan.
WHAT FBRK PREVIOUSLY REPORTED
FBRK previously reported on the results of an audit of the scientific sector conducted by the Supreme Audit Chamber (SAC). The audit revealed 149 unimplemented scientific assignments worth KZT 67 billion, delays in competitions of up to 208 days and risks of conflicts of interest. In particular, 84 members of scientific councils simultaneously participated in projects with funding of KZT 52 billion.
In addition, the auditors identified financial violations worth KZT 51 billion and inefficient planning and use of funds worth KZT 47 billion. Of 141 completed projects, only 38 achieved stable sales, while the remaining 103 projects worth KZT 22 billion did not achieve the expected results.
At a meeting of the Kurultai on 11 November, SAC Chairman Alikhan Smailov explained how the Science Fund had inflated commercialisation figures. The fund reported 43.6%, although on a comparable calculation the figure was 15.7%. It emerged that the number of commercialised projects over three years had been compared with the number of completed projects for only one year. Minister of Science Sayasat Nurbek acknowledged the need to revise the assessment methodology.
