Stated medical gloves, originally domestic, were discovered to be of Thai origin when sold to the government.
In a recent audit, the Accounts Chamber (SC "Farmazia") uncovered potential irregularities in the pharmaceutical supply sector, specifically involving LLP "KazMedProm". The audit concluded that the company, posing as a domestic producer, supplied 63 million pairs of medical gloves worth 8.1 billion tenge to SK "Pharmacia" in 2024, at prices significantly higher than market rates.
The sale of these products to the state at inflated prices has been confirmed, along with the possibility of importing foreign products as local ones. Customs declarations confirm the import of the gloves, and the delivery dates to SK "Pharmacia" match the import dates. The tariff code did not change during the processing, and this process is not considered production.
The Shymkent Prosecutor's Office initiated an inspection of LLP "KazMedProm" on May 22, 2025, and completed it on June 27. However, no criminal offense was found in the processing of the imported gloves. The bulk products were washed, dried, disinfected, and packaged in Kazakhstan, a process qualified as processing by the Shymkent Prosecutor's Office.
LLP "KazMedProm" produces approximately 17 million pairs of gloves per year, with an additional 50 million pairs sourced from bulk imports from Thailand. The company sold Panagloves diagnostic latex gloves for 98 tenge per pair, while market offers are available for 40 tenge.
The audit also highlighted the inefficiency of price regulation mechanisms and control mechanisms over the compliance of domestic producers with localization conditions. The pharmaceutical supply sector was audited to assess the effectiveness of state support measures for domestic producers.
While there is no direct evidence on the efficacy of control mechanisms in preventing domestic pharmaceutical producers like LLP "KazMedProm" from importing foreign pharmaceutical products under the guise of local ones, some inferences can be made. Customs and trade authorities rely heavily on accurate documentation and certifications to distinguish local products from imported ones. Stricter tariffs and trade oversight suggest controls exist, but the complexity of pharmaceutical supply chains can pose enforcement challenges.
[1] Source for heightened tariffs and trade restrictions: [Link] [2] Source for penalties for transshipment of goods to circumvent tariffs: [Link] [3] Source for US OFAC regulations allowing certain transactions involving medicine and medical devices under specific licensing conditions: [Link]
- The issue of workplace-wellness, particularly in the pharmaceutical sector, is raised due to the potential misrepresentation of imported medical supplies as local products, as evident in the case of LLP "KazMedProm".
- The science of fitness and exercise plays a crucial role in maintaining overall health and wellness, though it's important to note that affordable access to essential medical equipment like gloves is equally vital.
- As medical-conditions often require specific types of equipment, regulatory bodies need to ensure stringent controls on health-and-wellness products like gloves, aiming to prevent price manipulation and piracy, which health-conscious consumers and businesses must remain vigilant about.
