Heads of Kazakh wealth fund and railways arrested for suspected corruption

The ​heads of Kazakhstan's sovereign ​wealth fund and state ‌railway company have ​been detained on suspicion of corruption, Kazakhstan's domestic security service said on ‌Thursday.

In a statement, the National Security Committee said Nurlan Zhakupov, CEO of the Samruk-Kazyna wealth fund, and Yelzhas Otynshiyev, chairman ‌of the Kazakhstan Temir Zholy (KTZ) railway company, had been arrested ‌along with other, unidentified individuals. It said they were "suspected of committing a corruption-related crime".

Samruk-Kazyna said it was cooperating with investigators and that its companies were ⁠continuing ​to operate ⁠as normal. It did not give any details of the investigation. "All obligations ⁠to investors, creditors, international financial institutions and business partners remain valid ​and are performed in accordance with the terms of ⁠the current agreements," it said.

Samruk-Kazyna controls major assets across Kazakhstan's energy, transport, telecoms ⁠and ​infrastructure sectors, including the national airline Air Astana and state oil and gas company KazMunayGaz. The fund owns KTZ ⁠outright. The railway operator has said it is preparing for a ⁠planned international ⁠IPO.

Reuters has contacted KTZ for comment.