Anti-Corruption Agency cracks down on corruption in Kazakhstan with digital tenge
A pilot project designed to oversee public spending through the digital tenge has been launched in Kazakhstan. The new method was the main topic at a cabinet meeting presided over by Prime Minister Olzhas Bektenov on April 3. During the meeting, officials discussed new approaches to ensuring transparency in the use of state funds, as reported by the press service of Kazakhstan’s Anti-Corruption Agency.
Askhat Zhumagali, chairman of the agency, reported on the results achieved through the introduction of the so-called «money coloring,» which allows tracking the flow of public funds to their final recipients.
According to the agency, the most common corruption risks can be observed in education, healthcare, agriculture, social services and construction — particularly in highway and railroad construction — as well as in the procurement of agricultural machinery and livestock.
At the same time, the main risks involve the embezzlement of state funds through ghost employees, dummy activities and artificial transactions.
The «money coloring» project, which uses the digital tenge, has been implemented by the Anti-Corruption Agency in conjunction with the National Bank and the cabinet since February 2024, following the president’s instructions.
To ensure transparency, a digital platform integrated with the Ministry of Agriculture’s database for farm animal identification has been developed at the National Bank. Mechanisms for issuing microloans for farm livestock have already been tested within the Auyl Amanaty program in the Akmola region, as well as for subsidies for agricultural machinery.
Moreover, this year, monitoring efforts in the highway and railroad construction sectors are underway. For instance, approximately $324.6 million in digital tenge has been allocated for the construction of the Dostyk–Moiynty railway section in the Karaganda region, along with roughly $199,621 in digital tenge allocated for repairs of the Mukur–Kulsary highway in the Atyrau region.
According to Zhumagali, «money coloring» makes it possible to mark state funds and assign them to specific goals, while eliminating artificial transactions and preventing the funds from being cashed out or transferred to third parties. The agency’s chair also highlighted that the project enables tracking all stages of the flow of funds — from allocation to the final recipient contractor. Authorities will achieve this with the help of unique codes assigned to each fund allocation. These codes will contain the transaction history and payment details.
In turn, the prime minister stated that the agency has his complete support and should proceed with the implementation of the «money coloring» mechanism.
«We should pay mandatory attention to the fact that the introduction of the digital tenge will help re-engineer financial processes, taking into account new realities. It is necessary to expand the piloting of the digital tenge,» Bektenov said.
During the meeting, members of the cabinet also discussed the need to automate all budget processes, from planning to the commissioning of facilities funded by public resources.
The press service of the Anti-Corruption Agency also announced plans to extend the «coloring» mechanism to other economic sectors. The move aims to enhance control and reduce corruption risks across all stages of the budget process.
To fully implement the mechanism, the government must ensure deep integration of its information systems. Such synchronization will facilitate the digitalization of the entire cooperation process among participants in national financial programs, establish a transparent and unified system for financial management and eliminate corruption risks at all stages — from budget allocation to full utilization.
At the end of the briefing, the prime minister instructed authorized agencies to draft amendments to national legislation, creating a legal framework for digital solutions. The methodology for programming digital money must also be developed.
