Tokayev to Personally Oversee Probe Into Medical Insurance Fund Embezzlement

President Kassym-Jomart Tokayev has pledged to personally oversee the investigation into large-scale embezzlement from Kazakhstan’s Social Medical Insurance Fund (SMIF) and has instructed the government to accelerate the rollout of a unified national healthcare information system. The move follows a series of alarming revelations about systemic fraud in the medical insurance system. In January, Prime Minister Olzhas Bektenov ordered that control of the SMIF be transferred to the Ministry of Finance to bring financial flows under tighter oversight. Subsequent audits uncovered widespread violations, including the registration of fictitious patients, the billing of unnecessary medical services, duplicate financing of procedures, and even the provision of treatments to deceased citizens. The findings have been submitted to law enforcement agencies for investigation. Addressing an expanded government meeting, Tokayev stated that fraudulent activity in the social sector had reached “unprecedented proportions,” and emphasized that the Prosecutor General’s Office and other relevant bodies must investigate all instances of wrongdoing, regardless of the statute of limitations or the individuals involved. “I will personally oversee the investigation process,” the president declared. Tokayev attributed much of the abuse to the absence of a unified digital infrastructure in Kazakhstan’s healthcare system. More than 30 separate and unintegrated information systems are currently in use, creating serious gaps in oversight and traceability. In response, the president has ordered the government to finalize the development of a single, centralized state medical information system by December 1. The new platform is expected to provide full traceability of services and financial transactions, and to digitize all SMIF operations. Tokayev emphasized that digitization is essential for ensuring transparency and the proper use of public funds. As The Times of Central Asia previously reported, earlier this year, the government also announced it would cover health insurance contributions for more than one million unemployed citizens.

Kazakh Government Transfers Control of Controversial Medical Fund to Ministry of Finance

The Kazakh government has restructured the management of the Social Medical Insurance Fund (SMIF), transferring oversight of its operations to the Ministry of Finance. The decision was formalized by Prime Minister Olzhas Bektenov following a comprehensive audit of the fund’s financial activities conducted over the past month. The SMIF serves as the principal operator of Kazakhstan’s Compulsory Social Medical Insurance (CSMI) system. It collects contributions from employees, employers, and the state, then allocates these funds to medical institutions based on the volume of services rendered. However, the fund’s operations have faced sustained public and parliamentary criticism. In January 2025, members of parliament declared that the SMIF had lost the public’s trust and called for tighter oversight of its expenditures. Delayed Audit and Financial Irregularities Despite growing concerns, a large-scale audit had long been postponed. It was not until December 2025 that the Prime Minister tasked the Ministry of Finance with analyzing the fund’s financial flows. Finance Minister Madi Takiev presented the audit’s findings last week. According to the government press service, the results raised serious concerns about the overall effectiveness of the country’s healthcare financing model. Despite a steady rise in expenditures, the Ministry of Finance found that SMIF’s efficiency had not improved. Since 2020, the fund’s investment income totaled $1.1 billion, including $383 million in 2025 alone. A significant portion of these funds, however, was not allocated toward medical services, and instead accumulated in the fund’s reserves. Overbilling and Digital System Failures An IT audit of the healthcare information system revealed extensive violations in service reporting. These included billing for fictitious patients, services provided without medical necessity, and instances of double financing. Numerous cases documented implausibly high volumes of procedures performed within short timeframes. Several high-profile anomalies stood out. In some reports, medical services were recorded for individuals who were deceased at the time. In another case, minors were allegedly prescribed more than a thousand medications in a single day. Tax authorities also conducted a desk audit of the directors of medical institutions, comparing declared incomes with actual property holdings. Transition to Centralized Oversight In response to the audit, Bektenov ordered that all materials be forwarded to law enforcement agencies for further investigation. This marks the effective dismantling of SMIF’s former autonomous governance model in favor of centralized control by the Ministry of Finance. The move comes amid rising fiscal pressure on the healthcare system. In 2026, the government will continue to fund medical insurance premiums for socially vulnerable groups. As previously reported by The Times of Central Asia, the state will finance insurance coverage for over one million unemployed citizens.