Billions Lost in Digital Development Programs, Audit Reveals

While the Ministry of Digital Development promises reforms, auditors have uncovered billions in losses, reports Orda.

The audit covered the Ministry of Digital Development, Digital Government Support Center, National Information Technologies JSC, Innovation Technology Park, Astana Hub Technopark, and other organizations.

Key deficiencies include frequent legislative changes, project implementation delays, and dependence on imported technologies.

The e-government system also faces issues: the architectural portal lacks accurate accounting for 49 informatization objects, while 115 systems have remained in test mode for over a year.

Inefficient budget use has led to significant losses.

For example, 4.9 billion tenge was allocated in 2016-2017 to create five technology development centers and one venture fund, but three centers proved ineffective, while others operated without strategic plans.

Between 2018-2020, 987 million tenge was directed to 95 startups. However, 32 companies were liquidated, and over 20 organizations are inactive.

The Innovation Technology Park received 41 billion tenge from subsoil users from 2015 to 2024, but 14.8 billion went to business tasks without scientific effect.

At National Information Technologies JSC, 85% of 34 systems run on outdated code.

Financial violations amounted to 1.1 billion tenge, ineffective planning to 2.2 billion tenge, with a total of 46.5 billion tenge wasted.

Alikhan Smailov, the Supreme Audit Chamber Chair, stated that improving government and economic efficiency is impossible without quality digitalization. He ordered the acceleration of the GovTech platform implementation and migration of all government systems to it.

Cyberattacks and fraud have increased. One scheme is replaced by another, fraudsters are using new technologies. We need to counter these threats, Smailov said.

Digital Development Minister Zhaslan Madiyev announced the creation of an algorithm to block fraudulent calls and content on Telegram and WhatsApp. A unified call center for citizen inquiries is also being developed.

Smailov announced that in 2025, the Supreme Audit Chamber will audit public funds usage in Jambyl, North Kazakhstan, and Qostanay regions.

Original Author: Ruslan Loginov