This is a translation of a post by Basil B. Akimov, published in Russian on the Russian-language version of our blog.

It looks like the Kazakh healthcare has decided to reach the top place in the hit-parade of this week’s scandals. After the tragedy of the infants infected with HIV, the Karaganda people were once again shaken by the statement of the Karaganda oblast Prosecutor’s office about filing a criminal suit against a number of healthcare officials. The suit was filed after a long list of gross violations was found during the examination of the work of “Gospham” company and regional Department of Healthcare.

As explained by Zhankozy Nakishev, the oblast Prosecutor, the Healthcare Department was illegally buying the medicines, that were meant for sale at a reduced price and free distribution to the population within the free medical assistance guaranteed by law.

“Gospharm” won the tender in the beginning of the year and became a sole supplier of medicines for all hospitals, outpatient clinics and pharmacies of the oblast. Though somehow the officials did not notice that the company did not comply with the announced requirements of the tender and criteria of selection of the supliers. Well, many question mysterious tenders in Karaganda anyway. The winners are usually those who made sure to get the Commission’s support, not those who offer the lower price or better fit the criteria. I remember how one Kostanai periodical offered 1 tenge as a price for their services - the price, which cannot be competed with… and lost.

Even the Prosecutor of the Karaganda oblast admitted last year:

Everything is being arranged and shared before the actual tender. Some enterpreneurs, when going to the competition, know beforehand that they would have to give 10% of received money to the officials.

This case must have also involved certian backroom deals, since the company provided the wrong information about its available financial resources for fulfilling their obligations. There was no data in “Gospharm” application about its storage and transportation capacities. At that moment the “strict and competent” Commission closed its eyes and made an agreement for 800 million tenge (almost 7 million US dollars). “Gospharm” has already managed to receive 320 million tenge of this sum, which is the budget money. In addition, the Deputy Director of the Healthcare Department Gulzhan Utova (who used to be a Deputy Chair of the oblast Department of state purchases), signed a document, according to which 5 million 500 thousand tenge was transferred to the “Gospharm’s account. This money was allegedly paid for the losses that “Gospharm” suffered when it distributed the prescribed medicines for free. It would still be fine, if it didn’t turn out that the company did not have a license for this activity.

Also, “Gosprarm” did not have a right to conduct pharmaceutical activities on supplying the medicines to the hospitals in Ulytau district, Zhairem village and Zhezkazgan and Priozersk cities. Its management, as well as the Healthcare Department, have obviously forgotten it, since the former had the mentioned cities and districts in its list of places “granted” to “Gospharm”.
As a result of these violations the Prosecutor’s office initiated a criminal case according to article 176 of the Penal Code of Kazakhstan (embezzlement) against the Deputy director of oblast Department of Healthcare G. Utova. The Finance police launched criminal cases against the director of “Gospharm” Azim Saginov and the former director of oblast Department of Healthcare Kanat Ermekbaev.

Zhankozy Nakyshev, the Prosecutor of the Karaganda oblast prosecutor’s office says:

We offer the Ministry of Finance to stop any further payments. Cancel the illegal tender, annull the agreement and return the money.

This is almost a happy-end (for a budget, that always suffers from deficit). Though I doubt that they will return 320 million. And another small “but” - too often the cases against the high and mighties did not bring any results. The example is not far away - last year’s huge corruption scandals in Karaganda have turned out to be a play. Most figures of that process either got a suspended sentence of 2 years or did not get any.