Pharmaceutical Procurement Scandal Unfolds Again in Kazakhstan

A new pharmaceutical procurement scandal has erupted in Kazakhstan: several state-owned and private companies under the Ministry of Health are suspected of large-scale embezzlement.

According to Orda.kz's information, the investigation involves SK-Pharmacy and several other entities allegedly passing off imported drugs as domestically produced and engaging in dubious transactions.

Authorities have confirmed that pre-trial investigations are underway, but details remain classified.

Background

In August 2025, Orda.kz published an investigation into the questionable operations of several “Kazakhstani” entrepreneurs. One of the cases concerned an LLP whose founders included an offshore entity. For years, it sold glucometers and test strips to SK-Pharmacy, claiming the products were made in Kazakhstan.

These same items, manufactured by Farmaktiv LLP, were then distributed to diabetics as part of state-provided medical care.

A pre-trial investigation was subsequently opened against Farmaktiv under two criminal articles.

The National Center for Expertise in Medicines (NCEM) is responsible for certifying that drugs or medical devices are eligible for state purchase. The scale of the alleged falsification, combined with earlier irregularities within the NCEM, prompted Orda.kz to submit an inquiry to the Financial Monitoring Agency about whether the NCEM or SK-Pharmacy would be audited.

In September, the editorial team received an official reply:

The Astana Department of Economic Investigations is conducting a pre-trial investigation into the embezzlement of budget funds on an especially large scale in organizations subordinate to the Ministry. Regarding other matters, we inform you that, under Article 201 of the Criminal Procedure Code of the Republic of Kazakhstan, pre-trial investigation data are not subject to disclosure.

Several organizations under the Ministry of Health are suspected of embezzling significant budget funds. No further information has been made public.

Clarifications

During a recent government briefing, an Orda.kz journalist asked Health Minister Akmaral Alnazarova to clarify which organizations and amounts were involved.

'Materials are periodically referred to investigative authorities,' Alnazarova said. 'When overstated accounts or financial violations exceed the threshold, they are forwarded to law enforcement. The Chair of the Health Insurance Fund will now update me on the figures.'

Chairman of the Health Insurance Fund, Aydin Kulseitov, elaborated:

According to our regulations, under Ministry of Health Order No. 322, if falsifications exceeding 200 MCI (786,400 tenge) are detected within a month, those materials are forwarded to law enforcement agencies. In July alone, 47 such organizations were identified. These materials have been submitted to the Department of Economic Investigations for review. Results for August are still being compiled.

When asked whether these cases involved only private firms, Kulseitov clarified that the list also includes state-owned organizations.

Vice Minister of Health Ardak Amangeldy added:

An investigation is underway at SK-Pharmacy concerning procurement-related activities. Several other pre-trial investigations are also ongoing, but we have no further information, as the cases are classified as investigative secrets.

Orda.kz will continue to monitor the investigation and submit follow-up inquiries to determine which medications have been discontinued or withdrawn from procurement lists.

This is not the first controversy involving SK-Pharmacy.

In July 2025, the company replaced its general director following reports to the Prosecutor General’s Office.

A year earlier, Anticor discovered that at least eight Kazakhstani companies had falsely claimed to supply domestic medical products, while in fact importing gloves, syringes, and other consumables from abroad.

Original Author: Alexandra Mokhireva