Remove state officials from Samruk-Kazyna Directors Board: Shukeyev

June 02. Tengrinews

Remove state officials from Samruk-Kazyna Directors Board: ShukeyevReporting by Assemgul Kasenovam writing by Dinara Urazova, editing by Tatyana Kuzmina

Kazakhstan needs to gradually remove all the state officials from the Board of Directors of its national wealth fund, the Chairman of the Board of Samruk-Kazyna Wealth Fund Umirzak Shukeyev said during a meeting in Astana, Tengrinews reports.

“Samruk-Kazyna should become a highly qualified consultant for our companies. We need a fundamental reform of the board of directors, to increase the number of the board members, and ensure a higher level of professionalism and competence of the board members. Most of the board should be made up of independent directors… We need to gradually remove all state officials from the Board of Directors,” Shukeyev said.

Shukeyev called this measure one of the key ones in the campaign to transform the Fund. Kazakhstan’s president Nursultan Nazarbayev instructions to complete the draft program of transformation of Samruk-Kazyna by September 2014. The transformation plan will have eight main directions, Umirzak Shukeyev said.

We have identified 8 key directions in the Samruk-Kazyna transformation project. They envisage taking a new approach towards investment activities of Samruk-Kazyna, that involves transforming the fund from a passive shareholder into an active investor. We should not just sit and wait and just issue approvals to projects that are submitted to us by our subsidiaries, but we should work to identify new highly-effective, highly-feasible high-tech projects ourselves,” he said.

“We need to improve all the key parameters of our activities and being them in accordance with international standards,” Umirzak Shukeyev summarized.

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Transformation of Samruk- Kazyna will catalyze economic reforms

May 31. Kazpravda


Independent directors and top management of the Fund Samruk- Kazyna discussed a transformation program, developed on the order of the Head of State. They highly appreciated the new program and called it a breakthrough mechanism for the national economy.

The program consisting of eight key aspects will be developed by September 2014. In particular it includes such areas as investment policy, key performance indicators, reengineering of business process, restructuring and privatization of assets, industry teams, boards of directors, policies and management of changes.

According to independent directors of the fund, the transformation program is a necessary and immediate mechanism to catalyze economic reforms. It will allow the group of companies to increase profitability and the number of quality, high-tech, efficient and cost-effective projects.

– The transformation is not a temporary restructuring activity, but a new level of business and management of state assets. It means new mentality, new approaches based on commercial thinking and desire to bring the country to a new level, in accordance with the best international practices, said independent director of the FNW Richard Evans.

The first stage of transformation of business group of Samruk -Kazyna will be implemented in a pilot mode in the companies Kazakhstan Temir Joly, KazMunaiGas and Kazpochta. They are facing the task to analyze key business processes and improve work in the field of management, personnel and technological support of organizations.

– I would like to mention the work on strategic indicators of economic efficiency of EVA (economic value added), which will be the main criterion for increasing the value of companies, said independent director of the Fund Richard Evans. However, we should not limit the program by the EVA only. For example, the program must also include the rating of social stability, the level of injury, he added.

The program of transformation, or the program of great changes, as experts call it, today is implemented in the best companies in the world. Thus, the largest international holdings Khazanah (Malaysia) and Temasek (Singapore) conducted the reform within 6-10 years. The overall economic effect is estimated as the increase of the companies’ cost by 30 %.

According to independent director of Samruk- Kazyna Nigel Stapleton, business transformation means new opportunities which today are used by the most competitive companies in the world.

He believes that it is very important for the national companies to manage changes while conducting business reform.