Preventative control of business to be introduced in Kazakhstan
Today in the Majilis meeting devoted to the issues of legislation regulating entrepreneurship activity Timur Suleimenov presented a bill which will "make a conceptual change to the system of government control and regulation of business". There will be introduced a new institute of preventative control which is to reveal the causes and conditions of unlawful behavior of entities, explain legal consequences of violations and call to a compliant behavior and correction of violations.
"The only change will be conducting such control measures without initiating administrative proceedings", said Timur Suleimenov presenting the amendments and additions to the laws regulating business activity.
According to the Minister, presently the government regulates businesses dividing them into four groups. The first group is the entities for which control and regulation is carried in special procedures. Those are radiation and security control for nuclear power sector, fire safety, industrial safety and others. These are the most sensitive spheres presenting high hazard level; therefore all existing mechanisms of control will be preserved for them, namely the frequency and procedure of inspections.
The second group is the spheres where selective measures are applied based on risk management system. The third group is the businesses where out-of-plan inspections are applied based on complaints filed by individuals and legal entities. The fourth category of control is preventative control and, in most of the cases, do not imply visits.
"This control system which was introduced as part of Entrepreneurship Code allowed to reduce the number of inspections from 349,000 to 81,000 over the last four years. However, companies experience a certain degree of load due to the extensive authority of controllers who frequently interpret legislative requirements at their own discretion and pursue the goal to impose a fine even at minimal incompliance rather than ensure overall conformity of companies with the legislative requirements. Therefore, the priority principles of interaction between state inspectors and entrepreneurs should be efficient state regulation of business and prevention of violations so that both the parties are content", said the Minister.