MP Raises Concerns Over Samruq-Qazyna’s Role in Economy, Calls for Structural Reforms

The activities of the National Welfare Fund "Samruq-Qazyna" are raising increasing concern — according to Majilis deputy Askar Zhubanov, a member of the AMANAT party, Orda.kz reports.

Zhubanov stated that the fund has shifted away from its intended role as a driver of economic growth and has instead become a source of mistrust and an obstacle to market development.

According to the deputy, the procurement practices of Samruq-Qazyna and its subsidiaries undermine basic market economy principles. He cited data from the unified electronic procurement system showing that in 2023, over 60% of purchases within the fund’s group of companies were made from a single source.

A similar situation exists at Baiterek JSC, where the share of such purchases stands at approximately 50%.

Zhubanov noted that such practices create risks of corruption.

The attempt to adapt the Temasek Holdings model to Kazakhstan's conditions was unsuccessful. Singapore has strict institutional control and one of the lowest levels of corruption in the world — fifth place in the Transparency International rating. Kazakhstan ranks 93rd, and the conditions for the effective operation of a sovereign fund are fundamentally different,
he stated. 

Zhubanov also pointed to the high concentration of assets, noting that Samruq-Qazyna holds up to half of Kazakhstan’s GDP. At the same time, there is no regular external audit. He added that the profitability of major holdings — including KazMunayGas, Kazakhstan Temir Joly, and KEGOC — is declining.

At the same time, debt levels continue to rise amid the absence of clear and transparent transformation strategies.

The deputy proposed a series of reforms aimed at restructuring the fund:

• Conduct a comprehensive external audit involving independent experts, including assessments of corporate governance, procurement practices, and resource allocation
  
• Transfer assets in competitive sectors such as logistics, construction, subsoil use, and telecommunications to the open market, while maintaining state control over strategic sectors like transport, energy, and defense
  
• Develop a mechanism for gradual transformation — eliminating single-source procurement, divesting non-core assets, increasing transparency in tenders, and renewing the boards of directors
  
• Evaluate whether the fund should continue in its current form — and, if reform efforts fail, consider distributing its assets among relevant government ministries

Continued support for the economy through quasi-state structures that limit access to resources and duplicate the functions of the private sector reduces the investment attractiveness of Kazakhstan and increases public mistrust, the deputy emphasized.

He concluded by calling for the transformation of Samruq-Qazyna from a closed structure into a platform for real sector development and fair competition.

Original Author: Artyom Volkov