Social network VKontkte has published an interesting post by certain Azamat Baykenov entitled «A Road to Nowhere». By the looks of it, the author himself is a fake and the post is nothing but what is customarily called «leak». Nonetheless, according to our insiders, the post has been noted in the narrow circle of people and caused their big concern if not panic.

Here is the post.

«High-rank officials from the Ministry of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan as well as former top-managers of Kazakhstan Gharysh Sapary (KGS) NC JSC have become the center of the Anticorruption Agency’s attention. All of these people are the figurants of the criminal case tied to the implementation of the project called „The Earth Remote Sensing Satellite System (ERSSS)“.

First of all, we are talking about the medium-density earth remote sensing satellite supplied against the Contract signed in October 2009 between the Company and EADS Astrium (new name — Airbus Defense and Space SAS) in the amount of 105 bln tenge. As a result of the improperly written contract and its technical specification, the rights of the Kazakh side were thwarted, during the process of the satellite assembling, the subcontractor installed digital elements with no inflight history and radiation resistance certificate which, in just one month, resulted in the breaking of the orientation system and of the other important elements of the satellite stabilization system.

KGS’ management’s unlimited loyalty towards the subcontractor resulted in the fact that all the violations that took place while assembling the satellite were covered up via writing memorandums of approval and signing a number of additional agreements for the entire performance period. As a result, Kazakhstan obtained the flawed medium-density satellite KazEOSat-2 that, already at the stage of the flight testing, generated more than 20 incidents and switched to the emergency operation mode.

Nonetheless, the satellite’s acceptance procedure did take place albeit after almost one-year delay. Therefore, at that point, the satellite’s operational life was already shortened and, considering that the incidents’ dynamics is to remain the same (while it is impossible to repair the satellite in the outer space), the satellite is soon to acquire the space garbage status.

Despite the clear violations of the contract provisions by the subcontractor, it did not sustain any punitive sanctions and the satellite was accepted into service with the orientation system defects which was negatively reflected in the space photographing quality. The further operations of the satellite were but a series of different incidents that led to its 300-day dead-time and, eventually, to not achieving the goals set by the state. 

However, KGS’ management, with its enviable calmness and huge enthusiasm, continue to report on the big achievements in the sphere of the airspace earth monitoring to elected officials and governmental organizations. And they invariably back their reports with a gift — a big framed photo of say Akorda, Almaty or some other regional center. Such pictures are hanging on the walls of all the state agencies all over Kazakhstan. They have already promised to all the state agencies that they will assist them in the introduction of the new airspace technologies.

Huge funds (more than 4 bln tenge) were also spent on training KGS’ employees in France and the UK. On average, 105 mln tenge was spent on one employee. With that, the training was conducted with no proper monitoring on the part of KGS. It is known for a fact that KGS’ personnel was trained on the basis of a restricted syllabus — 3-4 hours a day. All the remaining time was devoted to outdoor activities such as driving around the beaches of France and Spain. As a result, some of these half-educated professionals return to Kazakhstan, quit their jobs and start looking for new career opportunities.

According to the announced estimates, the ESSS was to generate 75 bln tenge worth of profit. For the period the system has been in operation, the profit constituted only 130 mln tenge which shows a complete failure of the project’s commercial aspect and a huge loss suffered by the state. Once again, the mountain has brought forth a mouse.

Obviously, KGS’ management, taking its cues from Airbus Defense & Space SAS and effectively protecting the latter’s interests, were eager to participate in the very process of the ESSS creation without being concerned of the consequences for the state. We are talking about the big list of purchases made, for the most part, with violations of the State Procurement Law, the selection of the insurance company and a number of other pleasant things.

Moreover, they are already switching to a new promising project — the protection and increase of the earth remote sensing satellites fleet which means new big money and a new supplier that will pay anything for the right to have this contract.

Another KGS’ Space Program’s failed project is the assembly and testing complex intended for assembling Kazakh satellites. The state has already paid 63 bln tenge for its building and furnishing, but the complex is still non-operational, and no one knows if it is ever going to change.

Even a casual observer understands that, under the conditions of the fierce competition on the satellite-production market, the idea to assemble satellites without work experience, inflight history, qualified personnel is but a utopia. The very construction of the Complex was accompanied by corruption scandals that ended with KGS’ President’s imprisonment.

Amid the rapid technological progress in the field of air vehicles, the Complex has become obsolete. The guarantees of the technologies and equipment suppliers have long lost their relevance. The foreign suppliers, citing the numerous violations conducted during the construction period, will find thousands of legal reasons not to carry out their obligations of the previously signed contracts. The Complex is facing the danger to end up a museum piece shown for some money to the Kazakh citizens and the foreign guests of the capital. 

In conclusion, one may say that the actions of KGS’ management involved in the realization of the aforementioned projects have done a great financial, moral and reputational damage to the state and the people of Kazakhstan. We can state with certainty that the damage has been done to the country’s national security and that the authorities of the state’s top decision-makers are being compromised.

The situation formed inside KGS’ belly is undoubtedly affecting the operations of Kazakhstan’s entire space industry creating a negative attitude towards Kazkosmos’ agencies and the superior ministry among the Kazakh people. The fact that the real state of affairs is being hidden from the legislative and executive bodies, elected officials and simple folks causes anxiety».

Since we have addressed the subject repeatedly (see The Airbus Scandal and Musabayev’s Resignation, The Airbus Scandal and the Risks for Akorda, On the Airbus New Deal ), we would like to remark on the author’s deep knowledge of the topic.

As for the purpose of this «leak», it is quite clear — once again, to draw the attention of the Kazakh civic society and the press to the subject that, generally speaking, has long been the talk of the town albeit did not become an object of a thorough research with implications for the law-enforcement agencies as well as for the country’s political management. As a result, everyone who, one way or another, «profited» from the Kazakh space programs, has yet got off scot-free.

Kazakh astronaut #2 Talgat Musabayev, in our opinion, may serve as an example of these «lucky entrepreneurs».

In 2007-2016, he worked as the Chairman of the Aerospace Committee of the Ministry of Education and Science, at the National Space Agency and the Aerospace Committee of the Ministry for Investments and Development.

Later, when the risks of the Airbus international corruption scandal impinging upon Kazakhstan became apparent and it was proved that the company had given bribes to people from Akorda, the heat was taken off him. First, he became the Presidential Advisor and then a deputy of the Senate of the Kazakh Parliament.

In our opinion, the appearance of the «leak» on VKontakte, along with our sources’ information on senator Talgat Musabayev trying to «fight his way» into Head of the Senate Dariga Nazarbayeva’s immediate circle in order to find a protector if the events are to unfold in a negative way, shows that the «space» scandal in Kazakhstan may soon «break out» again. Let us wait and see.