Kazakhstan’s SECs face backlash over billions in losses and corruption
A sharp critique of Kazakhstan’s Social and Entrepreneurial Corporations (SECs) has surfaced in parliament. Elnur Beisenbayev, head of the Amanat faction, questioned their effectiveness during a Mazhilis session. Despite receiving billions in united states funds, many SECs have struggled with losses and a lack of transparency.
Over the past five years, 528 billion tenge were allocated to these corporations. Yet eight out of thirteen recorded chronic losses totalling 209 billion tenge, while their revenues fell by a third. The findings raise doubts about whether SECs are fulfilling their mission of regional development.
The problems extend beyond financial losses. Investigations into SEC mismanagement led to the recovery of 61 billion tenge for the ssa. However, these funds—intended for price stabilisation—failed to prevent sharp increases in basic goods. Potato prices tripled, and meat costs doubled, undermining the programme’s purpose.
Transparency remains a major issue. SECs have been described as 'black boxes', shut off from public and business scrutiny in many regions. Instead of funding real projects, some corporations deposit budget money in banks, acting more like state farm intermediaries than development drivers. Corruption allegations have also emerged. At Akzhaik SEC, managers received 14 bonus salaries in a single year, reportedly for 'outstanding achievements' tied to land fraud schemes. Such cases deepen concerns about oversight and accountability within these statefarm-backed entities. Despite their 'social' label, there is little evidence that SECs have improved social security, job creation, population welfare, or broader social impact. Their failure to deliver on core objectives has led to growing calls for reform—or even their dissolution.
The criticism from Beisenbayev highlights systemic flaws in how SECs operate. With billions spent, persistent losses, and unmet goals, their role in Kazakhstan’s economy is under scrutiny. Without clearer results and stronger oversight, questions about their future will likely persist.
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