Billions meant for science misused: SAC audit reveals budget irregularities

Kazakhstan’s Supreme Audit Chamber has reviewed government spending on science, presenting its findings at a meeting of the Kurultai, the nation’s recently inaugurated unicameral parliament, on Nov. 11, 2026. Of 141 completed projects, only 38, or 27%, generated consistent sales over a three-year period. Another 103 projects, accounting for 22 billion tenge, failed to achieve their planned production or sales targets. The Chamber estimated the total value of financial irregularities and inefficient spending in the sector at 98 billion tenge (about $217 million).

More funding, but science’s share of GDP remains low

Auditors noted that between 2022 and 2025, government funding for science more than doubled, rising from 122 billion to 262 billion tenge. During this period, the National Academy of Sciences was established, universities and research institutions began upgrading their equipment, and new support measures for young scientists were introduced. In 2026, the development of science and innovation was enshrined in the Constitution as a strategic priority.

However, science still accounts for just 0.16% of gross domestic product (GDP), well below the 1% target. According to Kursiv.media’s calculations, the gap is approximately sixfold. Meanwhile, the government’s share of total science funding has increased from 55% to 82%. Auditors attributed this trend to weak demand from businesses for research and development (R&D).

Read also: State-funded Kazakhstani startups face high failure rate.

Targets repeatedly lowered

Between 2021 and 2025, Kazakhstan had four policy documents governing the development of science. Three were discontinued before their scheduled expiration dates, and their targets were subsequently revised downward.

For example, the R&D spending target as a share of GDP was initially set at 2% but was later reduced to 0.5%. The planned increase in the number of researchers was cut from 50% to 7%, while the target for private-sector funding was lowered from 50% to 32%.

Incomplete projects and payments made before final reports

For 2025–2027, the government approved seven priority areas and 153 specific research topics. According to auditors, the list is so broad that almost any research project could qualify as a priority. Project assignments are also often vaguely worded, lacking clearly defined expected outcomes, verification criteria and implementation plans.

Read also: Katsu’s accusations against Nazarbayev University unfounded, minister says.

Of the 393 projects commissioned for 2023–2025, 149, worth a combined 67 billion tenge, were not completed.

Auditors also raised concerns about funding arrangements. A total of 62 billion tenge was allocated to 79 projects without detailed expenditure breakdowns.

«Even if the final report is rejected, most of the funding remains with the contractor: 96% to 98% of a project’s total value is paid out before the final evaluation,» the Chamber said.

Alikhan Smailov, chairman of the Supreme Audit Chamber, said 176 projects worth 16 billion tenge had failed to achieve their intended outcomes. Although monitoring identified these shortcomings, no corrective measures were taken.

In 2025, monitoring covered more than 2,000 projects and uncovered violations totaling over 3 billion tenge. However, according to Smailov, the national scientific councils merely «took note of the information» without taking further action.

Delays in tenders and potential conflicts of interest

Competitive selection procedures for 2025 projects were delayed by as much as 208 days, disrupting the entire research cycle. The submission of expert assessments to scientific councils was also delayed by up to 93 days.

Additionally, recommendations by economic experts to reduce funding for 545 projects by approximately 12 billion tenge were not followed.

Auditors also identified potential conflicts of interest among scientific council members. Of the 225 members, 84 participated in research teams working on 127 projects worth a combined 52 billion tenge. Another 27 council members served as scientific supervisors for these projects.

Patents without agreements for their use

According to Smailov, scientific performance is often assessed using formal indicators, including publications, intellectual property documents and records of implementation. However, these indicators do not necessarily demonstrate that a project has produced a tangible technological or industrial result.

Read also: Kazakhstan’s untaxed ‘shadow economy’ hits $42 billion.

Projects typically conclude with a final report, but the subsequent use of their findings is not monitored. The audit found that no agreements had been signed for the use of 60 patents included in the sample.

Commercialization also remains a challenge. According to the Science Fund, the commercialization rate stands at 44%. However, when calculated on a comparable basis for the reporting year, the figure falls to 16%.

«The actual impact on the market is also limited,» Smailov said.

The mechanism requiring subsoil users to allocate 1% of their revenue to scientific research has also failed to become an effective funding instrument. Auditors found that compliance with these obligations is poorly monitored and that some of the funds received have been diverted from research activities into bank deposits, securities and repurchase agreements (repos).

What comes next

The audit identified 51 billion tenge in financial irregularities and another 47 billion tenge in inefficient planning and use of funds.

Materials concerning 36 violations have been submitted for administrative proceedings, while cases involving three incidents have been referred to law enforcement agencies. The Chamber has also issued recommendations and directives to the government and relevant state agencies.