State agencies and organizations in Uzbekistan spent billions on mobile devices despite state budget deficits

Despite the Prime Minister’s recommendations to suspend asset purchases, it was revealed that last year Uzbekistan’s state organizations spent over UZS 6.6 billion on the purchase of over 3,400 smartphones, including the latest and most expensive iPhone 15 Pro Max model. These expenditures took place in a year in which the state budget deficit increased significantly, covered in particular by foreign debt.

According to the analytical report of the Fiscal Service Commission at the Ministry of Economy and Finance, in 2023, state organizations completed 289 transactions for a total amount of UZS 6 billion 637.8 million for the purchase of 3,402 expensive smartphones (a copy is available on the Kun.uz website). ).

The Commission notes that these expenditures were made contrary to the order of the Prime Minister of 5 January 2023, which stated that until the limited organizational structure (institution) has been approved, major asset purchases relating to ministries and agencies should be temporarily suspended, irrespective of , whether financed from budgetary or extra-budgetary funds.

Nevertheless, data shows that last year, state organizations ordered an average of 12 smartphones per purchase.

The Commission’s investigation revealed the following expenditure:

– In the Republic of Karakalpakstan, UZS 1,483.3 million was spent on 796 mobile devices in 62 cases;
– In the Jizzakh region, 658 mobile devices cost UZS 948.9 million in 27 cases;
– In the Fergana region, 519 mobile devices led to expenses of UZS 581.9 million in 30 cases.

“For example, the administration of Sarasiyo district in the Surkhandarya region concluded an agreement for the amount of UZS 72 million from the reserve fund with the private enterprise “Bahrulloi Rustam Chorvador” for the purchase of 4 expensive smartphones (iPhone 13 Pro Max) and payment. In addition, the Jizzakh State Pedagogical Institute made a payment of 19, UZS 1 million via an electronic trading platform in connection with the contract with the private enterprise “Odilov Abdulhamid ugli” for the purchase of iPhone 15 Pro Max,” according to the Treasury’s findings.

In the past period of 2024, 60 purchase procedures for 301 mobile communication devices were carried out from local government budgets, as a result of which contracts were concluded with a total value of UZS 1,362.2 billion with payments made.

Specifically, in the Ferghana region, UZS 566.1 million was spent on 146 different mobile devices in 10 cases, in the Tashkent region, UZS 193.1 million was spent on 72 devices in 7 cases, and in the Andijan region, UZS 255 million was spent on 14 devices in 2 cases. For example, in the Oltinkul district of Andijan, the local government signed a UZS contract worth PLN 18.5 million with the company “Omad-imkon 21” LLC for the purchase of iPhone 15 Pro.

The Treasury Committee presented the audit results to the Deputy Prime Minister – Minister of Economy and Finance, Jamshid Kuchkar, with a proposal to investigate the situation by the Financial Control Inspectorate.

It was previously reported that the prosecutor’s office in the Samarkand region purchased 22 iPhone 14 Pro Max models for UZS 445 million, and the Tashkent regional branch of the Republic Center for Spirituality and Enlightenment purchased two iPhone 15 Pro Max models for UZS 51 million.

As a reminder, last year the consolidated budget deficit of the Republic of Uzbekistan almost doubled the allowable amount, reaching 5.5% of GDP. The amount of foreign debt acquired during the year also exceeded plan by $1 billion, for a total of $5.5 billion.

Last week, the government of Uzbekistan issued another batch of government bonds worth $1.5 billion. According to the State Statistical Commission, the volume of foreign loans obtained under state guarantees increased 2.7 times in the first quarter of the year.