In Kostanay, one of the largest criminal cases in recent years has concluded — the court found 30 people guilty in a case concerning government subsidies totalling over 2.5 billion tenge. The trial, which had been ongoing since 2024, was one of the longest in the region and involved both businesses and state bodies.
WHAT THE COURT ESTABLISHED
The court established that from December 2021 to June 2023, the defendants carried out a scheme to embezzle subsidies allocated for the development of livestock farming and meat processing.
Those involved include the director of «BEEFSTREAM» LLP and «BEEF EXPORT GROUP» LLP, employees of these companies, heads of other LLPs, heads of peasant farms, an individual entrepreneur, veterinary specialists, and employees of the regional administration’s department of agriculture and land relations.
WHAT EPISODES WERE IDENTIFIED
The court recorded several key episodes:
- embezzlement of 1 billion 197.5 million tenge in investment subsidies during the construction of a meat-packing plant. It was established that the facility did not meet its stated capacity, and documents were forged;
- illegal receipt of over 354 million tenge in subsidies through the creation of false data about livestock, which either did not meet requirements or existed only on paper;
- embezzlement of 1 billion 25 million tenge through the registration of so-called ‘phantom’ livestock. Participants received 8,000–10,000 tenge per head for the fictitious data.
LEGAL CLASSIFICATION AND POSITIONS OF THE PARTIES
The actions of the defendants were classified under several articles of the Criminal Code of the Republic of Kazakhstan, including Article 190, Part 4 of the Criminal Code of the Republic of Kazakhstan (“Fraud on an especially large scale”), Article 218, Part 3 of the Criminal Code of the Republic of Kazakhstan (“Legalisation of money and property obtained by criminal means”), Article 245, Part 3 of the Criminal Code of the Republic of Kazakhstan (“Tax evasion”), as well as articles related to organised groups, bribery, and document forgery.
During the trial, some of the accused did not admit guilt, while others admitted it partially. A number of those involved fully confessed and requested a sentence not involving imprisonment.
WHAT SENTENCES WERE HANDED DOWN
The court found all defendants guilty and imposed sentences taking into account each individual’s role and mitigating circumstances.
The director of «BEEFSTREAM» LLP and «BEEF EXPORT GROUP» LLP was sentenced to 14 years in prison, with a ban on holding managerial positions for 10 years and a lifelong ban from public service.
Other sentences include:
- the director of one LLP — 10 years in prison;
- an accountant — 9 years in prison;
- an employee of a veterinary station — 8 years in prison;
- a deputy director — 7 years in prison;
- an employee of an enterprise — 6 years in prison;
- an employee of the department of agriculture — 5 years and 6 months in prison.
Heads of peasant farms received sentences of 5 to 10 years in prison.
Some of those involved received suspended sentences of 1 to 4 years or were released from punishment under an amnesty. A few individuals were released from criminal liability due to the expiry of the statute of limitations. In one case, the proceedings were terminated due to the death of the accused.
DECISIONS ON PROPERTY AND ASSETS
The court upheld the civil claims of the victims and maintained the seizure of the convicted individuals’ property until the sentence is carried out.
It was also ordered that seized funds be forfeited to the state: $1.3 million, over €4,000, and more than 600 million tenge held in the accounts of «BEEF EXPORT GROUP» LLP.
The verdict has not yet entered into legal force.