A state audit of pension and social security provision for Kazakh citizens has uncovered a serious flaw in pension asset reporting: information on receivables, overdue debt and provisions was being submitted to the Unified Accumulative Pension Fund (UAPF) by private management companies as part of an aggregated "other assets" figure — without specific amounts or shares. The news was reported by infohub.kz.
According to the press service of the Supreme Audit Chamber (SAC), this practice limited the ability to monitor the quality of pension asset management. The lack of detail prevented regulators and the fund itself from promptly assessing the risks associated with private companies managing depositors' money.
On the instructions of the Supreme Audit Chamber, the UAPF signed additional agreements with investment portfolio managers and their custodian banks. The updated documents, according to the statement, establish an obligation to disclose receivables, overdue debt and provisions, specifying exact amounts and their shares.
The SAC noted that more detailed reporting gives the UAPF and regulators the ability to promptly track the quality of assets under private companies' management and to identify possible risks in a timely manner. This ensures more reliable protection of Kazakh citizens' pension savings.
Compliance with the remaining recommendations issued following the state audit remains under the Supreme Audit Chamber's supervision.