The editorial team at FBRK continues to investigate the most costly government procurement by Kazakh ministries in 2024.
In previous articles, we examined the state procurement of the Ministry of Agriculture, Ministry of Ecology, Ministry of Finance and the Ministry of Energy. Now we will look at the Ministry of Digital Development, Innovation and Aerospace Industry (MDDIAI).
An analysis of the MDDIAI's 2024 state procurement reveals a large-scale picture of the technological modernisation of public administration.
The most significant expenditure item – almost 49 billion tenge – is directed towards ensuring the operation of the NJSC 'State Corporation 'Government for Citizens'. These funds support the uninterrupted work of Public Service Centres across the country, where thousands of Kazakhstanis receive public services daily.
Substantial investments have been made in the development of digital services for citizens. The unified contact centre, which handles calls and online requests, received funding of 3.3 billion tenge. The modernisation of the Civil Registration System, which affects virtually every citizen of the country, has been allocated 4.2 billion tenge.
Special attention has been paid to the development of e-government. The support of the Smart Data Ukimet information and analytical system, which supports the work of the Prime Minister and the government, has received 1.8 billion tenge. The maintenance of the e-government web portal and payment gateway cost 544.7 million tenge, and their technical upkeep a further 1.15 billion tenge.
The digital transformation of state bodies in 2024 required significant investment: 666.7 million tenge for organisational support, 518.1 million for data management by the Digital Government Office, and 393 million for the development of the e-government architecture.
Other significant expenditures include:
- 520.6 million tenge for the E-licensing system;
- 466.9 million for the postal service of state bodies;
- 381.3 million for a unified internet resource platform;
- 378 million for a remote work service;
- 371.8 million for the development of a digital identification system with facial recognition.
Interestingly, the list of major expenses also includes work on the demarcation of the state border with Russia – 278 million tenge – demonstrating the wide range of the ministry's remit.
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For reference: Border demarcation is the process of establishing and marking a border between states on the ground. Simply put, it's when signs, posts, or other markers are placed on the border to show exactly where the dividing line between countries runs. It should be noted that demarcation takes place after the border has been officially agreed upon on paper – a process called delimitation.
In total, the MDDIAI allocated tens of billions of tenge to the state's digital infrastructure. However, a legitimate question arises: how effectively are all these systems working?
Recall that in October last year, the Information Security Committee initiated administrative cases against the Ministry of Health, the Ministry of Agriculture, and the Ministry of Finance, as these bodies violated the operational deadlines for information systems.
At the same time, Prime Minister Olzhas Bektenov announced, that a centralised national remote biometric identification system would be created in Kazakhstan. The project is to be undertaken by the MDDIAI jointly with JSC 'National Information Technologies' and LLP 'BTS Digital'.
Later, in December, Majilis deputy Bakytzhan Bazarbek accused the MDDIAI of ignoring legal requirements. According to him, the ministry failed to integrate a system that would allow land inspectors to track electronic inspections.
To be continued…