Business Corruption in Kazakhstan

Corruption is rampant throughout Kazakhstan’s political circles and negatively affects the country’s business environment. Facilitation payments and bribery are illegal, but the state bodies responsible for combating corruption are ineffective, unreliable and fail to hold high-level officials responsible for corruption, abuses of office or conflicts of interest . A weak judicial system compromises Kazakhstan’s extensive legal framework for dealing with corruption. To increase the efficiency of the government's anti-corruption initiatives, parliament launched the Sectoral Anti-Corruption Program 2011-2015 and continues to develop e-governance systems.

Companies report corruption as the number one constraint on doing business in Kazakhstan. Challenging bureaucracy and vague legislation restrict foreign investment. The customs administration is prone to bribery , and almost every third company expects to make facilitation payments when clearing goods at the border. With the aim of attracting international investors and companies, the government amended the public procurement law to provide for a single body responsible for all public procurement in the country, thus increasing transparency in the sector. The OECD has asked Kazakhstan to ensure the genuine involvement of civil society in anti-corruption actions and to promote integrity in the public sector by ensuring less independence on the executive.

September 2014
GAN Integrity Solutions