Tokayev signs law on dismissal of corrupt officials

In Kazakhstan, they were going to punish for the difference in income and expenses

President of Kazakhstan Kassym-Jomart Tokayev signed the law on combating corruption. Now for the discrepancy between the expenses of civil servants and their incomes, punishment is provided up to dismissal. Will this be a really effective measure in the fight against corruption, or will unscrupulous Kazakhstani officials have the opportunity to circumvent the law?

The bill for the unreasonable discrepancy between the income and expenses of officials was considered in the Kazakh Majilis back in February 2022. Now it is signed by President Tokayev. According to the law, from 2027, civil servants will face fiscal and career sanctions if their annual income exceeds 1,000 MCI. Monthly Calculated Index (MCI) is an indicator adopted in Kazakhstan used to calculate benefits and other social payments, as well as to apply fines, taxes and other payments. From January 2023, the MCI in Kazakhstan is 3,450 tenge.

According to the idea, an official can get off with a fine of 90% of the amount of the discrepancy if his annual income exceeds 1,000 MCI. If the discrepancy is too large, then the official will be fired with a ban on holding public office for up to three years.

The law was adopted in addition to the current rules on the collection of 10% personal income tax for discrepancies in declarations. From January 1, 2021, Kazakh officials and their spouses are required to submit declarations of their income and property. This rule is part of the phased introduction of universal declaration, which is not yet available in Kazakhstan.

On the one hand, the anti-corruption measures of the Kazakh state cannot but be noted on the positive side, however, there are many loopholes and ways to circumvent any legal norms related to property. It has become a vicious practice in many countries of the world, for example, to transfer the property of officials to the next of kin and figureheads. The effectiveness of this law is questionable for other reasons.

Chingiz Lepsibaev, President of the Eurasian Expert Council Public Foundation, told MKthat this law causes great skepticism. “Firstly, according to the law, the amount is not very large, to be honest. It’s not about that big money. The difference for sanctions between income and expenses according to the law should be about 7.5 thousand dollars. Such an amount can be accumulated in a year or two, or even faster, depending on what the official’s salary is. Officials also have different salaries. That is, the amount itself is doubtful. Secondly, a person cannot be limited if he honestly earned his money and saved up. There are a number of questions.”

As an important point that determines the effectiveness of the law, the expert noted the lack of a universal declaration of income in Kazakhstan. “All these norms are invented by the State Revenue Committee, and in my personal opinion, this office in Kazakhstan is extremely incompetent. The whole principle of the fight against corruption here is built on a fundamental basis – corrupt officials must themselves come and surrender. And all the tax evaders too. This rule will therefore not apply. It is simply invented for the sake of the image of the head of state. Here, too, a law on individual bankruptcy was adopted the other day, which is exactly the same not working. I think we will not see any effect from this populist measure, which, in fact, sets up the incumbent president.”