The FBRK editorial team has obtained documents revealing widespread financial irregularities at the Akmola branch of the RSE «Kazvodkhoz». This is an enterprise that receives billions from the budget each year to supply regions with drinking water. However, all evidence suggests that these funds are flowing in a very different direction.
The beginning of this story is quite ordinary – an inventory in the village of Korgantas in early February 2022. The commission identified a shortfall of 229 litres of AI-92 petrol and 3,127 litres of diesel fuel. The total damage amounted to 660,208 tenge. The report was signed, and the material damage was recorded. It seemed like a routine case of a shortage.
But here is what is particularly interesting. It appears the shortage was actually discovered in late January 2022 during an internal commission inspection. A few days before this, the site manager – Mr Utyro – had written an explanatory note, admitting his guilt in the theft not only of fuel and lubricants, but also of a diesel power station (a standalone generator worth several million tenge) and a low-bed trailer (a special trailer for transporting heavy machinery). In his explanatory note, Mr Utyro directly states that he acted on the instructions of the head of the production site in Kokshetau, Mr Baltabekov.
Notably, according to our sources, after being dismissed following their confession to the theft, both employees were rehired by the new branch director, Yerbol Askerbek. As it turns out, Mr Baltabekov continues to manage the site in Kokshetau today, and Mr Utyro is again working at the main facilities under his supervision. According to our sources, management has even received expressions of gratitude from these now-familiar employees.
It is no longer clear what is more absurd – the scale of potential theft at Kazvodkhoz, or the matter-of-fact way it has to be reported.
Let us recall, for instance, the situation regarding the reconstruction of parts of the «Nura Group Water Pipeline» in the Yegindykol and Korgalzhyn districts. Simple arithmetic. In 2020-2021, 503.2 million tenge was allocated for the repair of 16 km of pipeline. The quality report dated 10 December 2021 stated a sum of more than 579 million tenge, while the minutes of the Water Resources Committee meeting cited a figure of 488 million tenge after a discount.
At that time, the technical council decided to extend the section under repair using the remaining 178 million tenge. However, our sources claim that this extension was never actually carried out. Meanwhile, a new pipeline was laid parallel to the old one, but the necessary work to ensure their joint operation was not performed. So, hundreds of millions were spent (one wonders where?), and the water supply problem was not solved.
It is worth recalling that the RSE «Kazvodkhoz» and the RSE «Nura Group Water Pipeline» are linked by a merger process, carried out in 2024 to optimise water resource management. This decision was prompted by financial irregularities, dilapidated infrastructure, and ineffective management in both organisations.
The RSE «Nura Group Water Pipeline» and its former director, Gamzat Sagandykov, have also repeatedly been at the centre of questionable dealings. For example, an audit in early 2024 revealed that Sagandykov had accepted an incomplete construction project, causing the state more than 40.5 million tenge in damages. The story began in 2022 with the signing of a contract with the LLP «Euro-Kurly»s for the repair of a dormitory for shift workers and the roof of a pumping station for a sum of more than 38 million tenge. A few weeks before the contract deadline, its value was increased by almost one and a half times – to 60 million tenge. An inspection in January 2024 showed that uncompleted work on the electricity supply, heating, water supply, and sewage systems had been accepted and paid for.
Incidentally, according to information from our editorial team, today, several years later, the dormitory still stands unrepaired, and virtually nothing is known about Sagandykov's current status.
The situation appears even more absurd against the backdrop of systemic problems in Kazvodkhoz branches across the country. According to the ministry's internal audit department, inspections in 2024 led to more than 30 individuals being brought to administrative responsibility. An audit in the Zhambyl region revealed around 10 cases of illegal water resource use. Last October, violations worth 20 million tenge were also discovered related to illegal water use and public procurement.
However, despite a string of corruption scandals, the Ministry of Water Resources continues to pour vast sums of money into the sector. Extensive work is underway to replace 19 pumping units and electrical equipment on the K. Satpayev Canal, contracts have been signed for the supply of 17 transformers, and 9 units of component equipment have been purchased. To improve the material and technical base of Kazvodkhoz branches, the procurement of 757 units of special machinery and vehicles has begun, 150 of which have already been delivered to the branches, with an additional 23 units purchased under the investment programme.
And quite recently, in early May 2025, the Islamic Development Bank (IsDB) approved the provision of a loan and grant to Kazakhstan for the implementation of a large-scale programme for the development of water infrastructure. During the first phase, from 2025 to 2027, Kazakhstan will receive $1.153 billion, of which $1.1 billion will be allocated for construction work and digitalisation, $50 million for design and estimate documentation, and $3.5 million as a grant for institutional capacity building. Is it necessary to specify who exactly will be the main contractor or, at the very least, an active participant in these projects?
And this is not about the water sector not needing these funds – on the contrary, they are critically necessary. However, it appears that these funds are ending up in the wrong places.
Back in April last year, the President noted the need to reorganise the entire water management system, including the «Nura Group Water Pipeline». And, judging by the facts uncovered, such a reorganisation is indeed overdue, because corruption schemes are multiplying exponentially.