Kazakhstan’s New Asset Recovery Law Raises Concerns about Transparency and Fairness

Astana, Kazakhstan - A Step Forward or a Step Back?

The government of Kazakhstan has introduced a new law aimed at recovering illegally withdrawn assets from the country’s wealthy elite. However, experts warn that the law may prioritize big business interests over transparency and fairness.

Lack of Transparency in Asset Management

According to the new legislation, the government will establish a special commission to manage returned assets. The Ministry of Economy will determine the criteria for social projects, while the Ministry of Justice will be responsible for publishing an annual report on how the funds were spent.

• Critics argue that the lack of transparency in the asset management process raises concerns about corruption and mismanagement.
• “It’s not clear how these assets will be managed or what kind of oversight there will be,” said economist Marat Kapparov. “We know that asset recovery is a complex and difficult process, but it requires transparency and accountability.”

Concerns over Democratization and Economic Inequality

The law also raises questions about the government’s commitment to democratization and reducing economic inequality. President Kassym-Jomart Tokayev has promised to increase competition in the economy and reduce the concentration of wealth among a few dozen businessmen.

• However, some experts argue that the asset recovery process could actually benefit big business interests.
• “Big business can write off unprofitable portions of socially relevant projects and then privatize them,” said Kapparov. “This is a classic example of how asset recovery can be used to benefit the elite rather than the people.”

Opaque Money Grab or True Reform?

The government has also established an Interdepartmental Commission on Combating the Illegal Concentration of Economic Resources, which will oversee the asset recovery process. However, critics argue that this commission lacks transparency and accountability.

• The new law has been met with skepticism by anti-corruption researcher Mark Mayne, who argues that asset recovery is a complex and difficult process that often blurs the line between legality and illegality.
• “In countries like Kazakhstan, asset recovery can turn into an opaque money grab,” he warned.

Testing Transparency and Accountability

The government’s commitment to transparency and accountability will be put to the test as it implements this new law. Critics argue that without clear guidelines and oversight, the asset recovery process could become a tool for corruption rather than a means of reducing economic inequality.