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Kazakhstan President Links Sovereign Wealth Fund Chief's Arrest to Anti-Corruption Drive
Kazakhstan President Links Sovereign Wealth Fund Chief's Arrest to Anti-Corruption Drive
Kazakhstan’s president has defended the recent arrest of the head of the country’s sovereign wealth fund, framing the move as a necessary step in the fight against corruption. President Kassym-Jomart Tokayev asserted that these efforts are designed to enhance transparency and strengthen the confidence of international investors and creditors in the nation's key economic institutions.
Kazakh President Kassym-Jomart Tokayev stated on Friday that the recent arrest of the head of the country’s sovereign wealth fund would not disrupt its operations, emphasizing that anti-corruption measures are intended to strengthen investor confidence. Speaking at a session of the national security council, Tokayev argued that the fight against corruption should increase the trust of investors and creditors in the institution, making its work more effective, transparent, and productive.
The comments followed announcements on Thursday by Kazakhstan’s domestic security service regarding the detention of Nurlan Zhakupov, chief executive officer of Samruk-Kazyna, and Yelzhas Otynshiyev, head of the state railway company Kazakhstan Temir Zholy (KTZ). Both men were arrested on suspicion of corruption. Samruk-Kazyna confirmed it was cooperating with the ongoing investigation.
Samruk-Kazyna holds assets accounting for nearly 40% of Kazakhstan’s gross domestic product. Its portfolio includes major national entities such as the flag carrier Air Astana and the state oil and gas company KazMunayGaz. The timing of the arrests coincides with significant financial developments for KTZ, which recently cleared a listing hearing at the Hong Kong Stock Exchange. This step is critical to a planned initial public offering that includes listings in Astana, Hong Kong, and London.
During his address, Tokayev also noted that the government had reviewed certain contracts, though he did not specify the industries or parties involved. He described some agreements as having been signed by mistake. The president did not clarify whether these reviews pertained to the energy sector, where Kazakhstan has recently challenged several major foreign-led projects.
Kazakhstan, which supplies approximately 2% of global oil, has accused oil companies that entered the country in the 1990s under contracts signed during the presidency of Nursultan Nazarbayev of corruption and environmental violations. The government is currently pursuing arbitration against these firms. In January, Kazakhstan won an arbitration case against the consortium operating the Karachaganak field and is engaged in proceedings regarding alleged environmental violations at the offshore Kashagan field.
A. Bogdanow--BTZ
