Public figure Elmar Khusainov has filed applications with the Prosecutor General's Office and the Anti-Corruption Service demanding a check into the legality of the contract between JSC "NC "Kazakhstan Temir Zholy" (KTZ) and the American corporation Wabtec.
The deal worth $4.2 billion provides for the supply of 300 locomotives of the ES44Aci evolution series, their partial assembly in Astana, and subsequent maintenance. The applicant believes the contract price is inflated and that the deal itself contains signs of corruption.
At the end of September, the media reported the signing of an agreement between KTZ and Wabtec. The contract was described as the largest in the history of the American corporation and one of the most significant for the Kazakhstani company. Assembly of the locomotives is planned at the existing locomotive assembly plant in Astana, which is a joint venture, previously partially sold to Russian "Transmashholding".
In his statement dated 3 November, published on his Facebook page, Khusainov cites materials from Kazakhstani media which discussed the circumstances of the signing of the agreement. In one interview, former head of KTZ Erlan Atamkulov stated there was a lack of transparency in the negotiations and an artificial inflation of the contract price. These allegations caused public outcry, but no official investigation has been conducted to date.
The statement provides a comparative analysis of similar international deals. In India, Indian Railways concluded a contract with Siemens Mobility for $3.25 billion for 1,200 electric locomotives with 35 years of maintenance. In Egypt, Egyptian National Railways modernised 1,000 diesel-electric locomotives for $232 million, including service costs.
With comparable technical parameters, the Kazakhstani contract significantly exceeds the cost of these projects. The document notes that the deal's price includes long-term service support, spare parts, and other items, which requires an expert economic assessment.
The document also mentions events from 2008–2016, when KTZ was headed by Askar Mamin. According to the statement, that period saw the sale of the company's strategic assets.
Specifically, this concerns the privatisation of the enterprises "Kamkor Lokomotiv" and "Kamkor Vagon", the sale of LLP "Centre for Transport Service", the signing of contracts with LLP "Instant Payments", as well as the sale of stakes in JSC "Elektrovoz kurastyru zauyty" (EKZ) to French company Alstom Transport SA and JSC "Atyk-Trans" to Russian "Rusagrotrans".
According to the statement, these transactions led to KTZ accumulating debts of more than 2 trillion tenge and a significant portion of the transport infrastructure being taken out of national control.
The appeal lists possible violations under Articles 189, 190, 361, 366, 367 and 193 of the Criminal Code of the Republic of Kazakhstan, including embezzlement, abuse of official power, bribery, and the legalisation of criminal proceeds. The statement requests a pre-investigation check with the involvement of the KNB and the Agency for Financial Monitoring, as well as requesting all negotiation materials with Wabtec from KTZ and Samruk-Kazyna.
On 15 November, Elmar Khusainov reported on the results of the review of the appeal. The application was accepted for consideration by both authorities and executors were appointed. However, the document was then forwarded to the Ministry of Transport, the Committee of Internal State Audit, and other departments. Ultimately, the appeal was returned for consideration to JSC "Samruk-Kazyna" and KTZ themselves.
The author of the statement expressed disagreement with this procedure for the review, noting that instead of an investigation, the competent authorities forwarded the appeal to the very organisations whose actions were to be investigated.
He stated his intention to send similar applications to other state bodies with a detailed description of the situation. In the absence of results within the country, the applicant does not rule out appealing to international investigative journalists and foreign law enforcement agencies.