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What does Kazakhstan Temir Zholy hide behind the veil of confidentiality?

Submitted by Вера Александрова on

Not long ago, the FBRK editorial team published a series of materials about the size of remuneration for top managers of national companies that are part of the investment holding company JSC "NWH "Samruk-Kazyna". 

In particular, we dedicated one of the materials to the country's main transport and logistics company – JSC "National Company "Kazakhstan Temir Zholy" (KTZ)

It is worth noting, however, that different information is circulated in the media regarding the amount of bonuses and the number of people on the executive body. 

In July of this year, the Protenge editorial team wrote that the top managers of the national company received a total of about 789.6 million tenge. However, it was not specified exactly which period was being referred to. 

In January 2024, information emerged that as of 30 September 2023, the executive body of the national company consisted of 15 people, who received total remuneration of 711 million tenge over nine months. 

At the same time, according to data from the financial reporting depository of the Ministry of Finance of the Republic of Kazakhstan, in 2021, 11 board members of JSC "KTZ" received a total of over 631 million tenge

In 2022, 10 top managers were awarded bonuses totalling more than 434 million tenge

In 2023, the executive body, consisting of 8 people, received about 687 million tenge

Our editorial team decided to contact JSC "KTZ" directly to find out which information is actually true. 

In response to our query about the total amount of remuneration for the national company's executive body for 2020-2023, JSC "KTZ" replied that "information relating to remuneration is part of the list of information constituting confidential information"



Yet, the relevant online reports are in the public domain on the official website of the Financial Reporting Depository (FRD), and therefore cannot possibly be considered a trade secret. 

For this reason, we contacted JSC "KTZ" again, but again received no sensible answer. 

Instead, we were once again told that the information we needed could be found on the FRD website. 



Presumably, JSC "KTZ" simply did not fully understand the query, and the reference to the confidentiality of public data was made in error. 

Nevertheless, one aspect remains troubling. The bonus system at JSC "KTZ" is already quite loosely defined, "taking into account the level of responsibility for the issues overseen at the strategic and managerial levels, in accordance with the mission, goals, long-term development priorities of JSC "NC "KTZ" and the expectations of the Sole Shareholder"

Now, add to that the differing amounts depending on the source of information and, judging by the responses we received, the reluctance to bring clarity to the matter in question. 

We come to the same conclusion that is repeated year after year: that the bonus system for top managers of national companies is impressive not only for the monetary amounts involved, but also for its degree of opacity and imperfection

Regarding the responses we received from JSC "KTZ", we merely wish to reiterate that the Law "On Mass Media" in Kazakhstan should guarantee the right of journalists to obtain information affecting the public interest, while maintaining certain restrictions, namely state and commercial secrets, to which this case certainly does not relate. 

We recall that in June, it became known that JSC "NC "Kazakhstan Temir Zholy" had illegally leased out railway tracks, earning 4 billion tenge from this.

Furthermore, in March, the FBRK editorial team reported on a practice favoured by JSC "KTZ" of passing off foreign carriages as domestic ones. You can read about this via the link.