SK-Pharmacy Under Investigation: Budget Losses May Top 40 Billion Tenge

The Prosecutor General’s Office has launched a wide-reaching investigation into alleged theft and misuse of funds at SK-Pharmacy and several other pharmaceutical organizations, Orda.kz reports.

According to Majilis deputy Bakytzhan Bazarbek, the probe was initiated after he and MP Murat Abenov submitted a joint appeal, citing findings from the Supreme Audit Chamber.

The audit uncovered suspected financial violations totaling tens of billions of tenge.

Bazarbek previously filed four appeals to regulatory authorities. One was based on audit results that highlighted serious procurement irregularities: inflated drug prices—some marked up by as much as 600% — delays in registration, sole-source contracts, and failed planning.

The deputy claims SK-Pharmacy, the national distributor, purchased medicines at hundreds of times their market value, ultimately writing off 280 million tenge worth of unsold drugs. Another 11.8 billion tenge was spent on uncertified medications.

The Supreme Audit Chamber estimates that the company's purchasing practices resulted in 35.8 billion tenge in damages to the state budget.

The investigation has also expanded to include KazMedProm and the Scientific Center for Anti-Infective Drugs. At the latter, auditors discovered allegedly fictitious clinical trials valued at 166.4 million tenge and another 36.7 million tenge spent on undelivered equipment.

KazMedProm is accused of selling overpriced medical gloves, leading to an estimated 5.3 billion tenge in losses.

These materials have been entered into the Unified Register and forwarded to the Financial Monitoring Agency. Additional checks are also underway into SK-Pharmacy and the National Center for Expertise of Medicines and Medical Devices.Bazarbek said. 

Following growing criticism, SK-Pharmacy’s leadership was replaced. Yerken Zhakatay, who held the position for less than a year, has been succeeded by Nurlybek Asylbekov, the former head of Shymkent’s health department.

Asylbekov’s appointment has raised concerns, particularly given his past record — he once sued a patient who criticized the healthcare system online.

The scandal reflects broader systemic issues. MP Askhat Aimagambetov recently pointed out that Kazakhstan’s drug registration process suffers from opacity and favoritism: applications from favored pharmaceutical firms are approved in 25 days, while others wait five times longer.

This delays affordable alternatives and allows more expensive drugs to dominate the market. According to him, 60% of all public pharmaceutical procurement goes through a single supplier.

In one case, companies linked to SK-Pharmacy reportedly repackaged imported medical supplies — gloves, syringes, and other items — and passed them off as domestically produced goods.

One such company, Eleas LLP, is accused of being involved in the scheme.

Original Author: Ruslan Loginov