Extended meeting at the government

Astana, 9 September 2008, (Khabar) - Non-used housing construction programme money to be returned to Republican budget.

All unused money allocated for the implementation of the state housing construction programme will be returned to the state budget with a corresponding statement being made at an extended meeting at the government by Prime Minister Karim Massimov. The

Ministry for Finance is set to examine the programme execution and the
results of 9-months worth of work. The head of the cabinet also added that the situation regarding the expenditure of funds in some regions improved but the majority of allocated money is still in bank accounts and remains dormant while the 2008 programme for construction of rental and affordablehousing for state employees is threatened for failure. Only 12% of allallocated money has been thus far spent in the Kyzylorda region with theWest Kazakhstan and Kostanai regions having spent even less.

Meanwhile, the Aktobe, Karaganda and Atyrau regions showed better indicators. Delivering their report before the Prime Minister, area leaders complained saying that they received the money too late and there were long-lasting tender procedures as well as the absence of feasibility study documents. As a
result, Karim Massimov gave the area leaders one month to improve the
current situation. In October, the government is set to hold a special
sitting where they will decide what regions should return the money to the
budget.

Karim Massimov, Prime Minister of RK:
- We will take the money from those who did not execute it. I will
personally report on it to the head of state. We will punish those who did
it and the money will be transferred to the emergency assets fund. It is all
about the instruction of the head of state who said the money should be used
where it is necessary.