Billions Down the Drain? What’s Known About the Fund Set to Merge with Astana Hub

Astana Hub is set to be merged with the Autonomous Cluster Fund “Park of Innovation Technologies” (ACF PIT). Orda.kz takes a closer look at what’s known about the fund.

The Majilis recently approved in the first reading a draft law aimed at improving state support for innovation. Among its proposals is the consolidation of two major development institutions: Astana Hub and ACF PIT.

It is proposed to transfer all measures of state support to the Astana Hub innovation cluster fund, which will increase the efficiency of the ecosystem. The goal is not just to merge, but to scale up the best practices of Astana Hub, which has shown high results in the IT sphere, said Minister of Digital Development, Innovation and Aerospace Industry Zhaslan Madiyev. 

However, ACF PIT’s track record raises serious concerns. According to the Supreme Audit Chamber, the billions invested in the fund have largely failed to yield results. Between 2016 and 2017 alone, ACF PIT received 4.9 billion tenge from the state budget to create five centers for technological development.

The activities of three centers ultimately turned out to be inappropriate and ineffective; two companies are operating without long-term development plans. Thus, three billion tenge were used ineffectively, the Audit Chamber reported. 

It was also revealed that the state financed 95 startups through the fund, allocating a total of 987 million tenge. But follow-up revealed that 32 of these companies have since been liquidated — 18 of them forcibly — while another 21 now submit tax declarations reflecting no engagement in any real business activity.

The Audit Chamber further noted that ACF PIT mismanaged not only public funds but also money from private sector contributions. From 2015 to 2024, the fund received 41 billion tenge from subsoil users — money intended to fund research and development (R&D).

179 projects worth 14.8 billion tenge were mainly aimed at solving current business problems and did not contribute to the development of science and the creation of new technologies,the auditors concluded. 

Even more troubling is that the commission within ACF PIT reportedly bears no responsibility for actually ensuring R&D.

Factors have been identified that contribute to the withdrawal of funds intended for the implementation of R&D projects, which requires the urgent introduction of transparent management and reporting mechanisms in the PIT ACF,the Audit Chamber warned. 

Original Author: Zhadra Zhulmukhametova