'Kyrgyzneftegaz' Found with Nearly $1 Billion in Violations

Kyrgyzstan's Court of Accounts has uncovered nearly one billion soms in financial irregularities and shortcomings at the state-owned oil and gas company, Kyrgyzneftegaz. The audit, covering the period leading up to 2025, identified a total of 967.8 million soms in violations, with 135.9 million soms deemed mandatory repayments.

During the audit, only 8.9 million soms of the required repayments were recovered. A significant portion of the losses, amounting to 495 million soms, stemmed from ineffective management and delayed production decisions, resulting in lost potential revenue for the company and its subsidiaries. Additionally, 281.4 million soms were found to be in violation of salary fund distribution and calculation rules.

Further discrepancies include the company's leadership failing to pursue the recovery of 120 million soms in current and long-term accounts receivable. Another 54 million soms were spent on excessive and unjustified expenses. Violations were also identified in capital construction, public procurement processes, and land reclamation efforts.

Kyrgyzneftegaz has been issued warnings to rectify the identified deficiencies and return over 126 million soms to the company's revenue. The materials from the audit have been transferred to law enforcement agencies for legal assessment and potential action.