Deloitte Has Completed an Audit of New Anti-COVID Hospitals

Two hospitals were built in Nur-Sultan and Almaty by BI Group

As the construction company’s press service reported, Deloitte has finished its examination of the two big projects in Nur-Sultan and Almaty.

After close examination of all construction costs, the auditing firm confirmed that BI Group’s overall expenditures met the projects’ goals. In the case of the hospital in Nur-Sultan, Deloitte confirmed costs in the amount of 4.9 billion tenge ($11.5 million) while BI Group said about five billion tenge ($11.8 million). The value-added tax was not taken into account.

In Almaty, where BI Group has built a new hospital for infectious diseases, the company’s costs were confirmed at 4.3 billion tenge ($10.1 million); the announced costs were about the same.

“All contractors were paid with 4.6 billion tenge ($10.8 million) in Nur-Sultan and 4.2 billion tenge ($9.9 million) in Almaty (with no VAT). The financial result was negative because of the urgency and the raise in overhead costs. As you know, amid the lockdown all administrative and state borders were closed. Currently, the holding is continuing to equip both hospitals with things the projects’ owner requires,” the firm stated.

In April last year, BI Group announced that it will cooperate with an international organization to prove all its expenditures for the construction of two COVID-19 hospitals. On April 13, 2020, the holding signed an agreement with Deloitte TCF, an international chain of accounting firms, which specializes in consulting and auditing. 

On January 18 this year, Kazakhstani media reported that the police have detained Sapar Nurashev and the head of BI-Industrial. According to these reports, they are suspected of fraud with money that was allocated for the new modular COVID hospital in Almaty.

The anticorruption service confirmed the investigation but refused to say specific names.

In turn, BI-Industrial said that the information about the arrests of Almaty administration official Sapar Nurashev and BI Group’s top manager are not true. 

“The holding didn’t receive any claims about the pretrial investigation. We have all proven documents about Almaty hospital costs and have already sent them to the customer. For more details, please contact the proper state agencies,” BI Group said to the Kursiv edition. 

As Kursiv wrote earlier, BI Group and Almaty Department for Comfort Zone signed several contracts. The most expensive was a modular COVID hospital for 300 patients. The contractor KAZPACO (an affiliate of BI Group) built this hospital in October last year in the Nauryzbay district. The total sum of the contract is about 13.4 billion tenge ($31.6 million). Another contract with BI Group’s affiliate BI-Industrial for 5.5 billion tenge ($12.9 million) had envisioned the construction of a modular hospital in the Alatau district of Almaty. It was built in April last year.
 

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