The Department of the Agency for Financial Monitoring (AFM) for the Turkestan Region has completed its investigation into a criminal group in a case involving the embezzlement of state subsidies. According to the investigation, the damage to the budget amounted to 103 million tenge.
HOW THE SCHEME WORKED
According to the AFM, 4 sole proprietorships, Nur-Keles LLP and Bimen S. LLP were used to obtain subsidies; these were formally registered in the names of third parties. Actual control over the entities was exercised through transferred electronic digital signatures (EDS), seals and notarised powers of attorney for the management of bank accounts.
Using these, deliberately false information was entered into information systems regarding the purchase and possession of agricultural animals, as well as the carrying out of breeding work. Electronic applications for subsidies were then submitted.
WHERE THE MONEY WENT
The funds received from the budget were cashed out and distributed among the participants in the scheme. The investigation also indicates that the money was used for personal purposes.
The total amount of damage amounted to 103 million tenge. These funds were intended to support agricultural producers and the development of livestock farming in the Turkestan Region.
WHAT PROPERTY WAS SEIZED
With the sanction of the court, the suspects' property has been seized. The list includes 2 residential houses, 4 motor vehicles, a parking space and a plot of land.
One of the suspects has been placed in custody. For the second, a preventive measure in the form of bail has been chosen.
AT WHAT STAGE THE CASE IS
The AFM reports that the investigation has been completed.
No other information is being disclosed in accordance with Article 201 of the Criminal Procedure Code of the Republic of Kazakhstan.
CONTEXT
The story of the illegal receipt of subsidies in the Turkestan Region is just one episode related to control over the spending of funds for state support of the agro-industrial complex. How large-scale the problem remains is demonstrated at least by the results of the state audit for 2023–2024, which showed violations in the subsidising and lending to farmers, including fictitious transactions and schemes that caused direct losses to the budget.
The scale of financing remains significant: over two years, around 1.2 trillion tenge was allocated to support the agro-industrial complex, and the total volume of violations identified amounted to around 300 billion tenge. Among other things, the audit revealed shadow schemes in subsidising worth 5.5 billion tenge.
The founder of the FBRK and agricultural expert Kirill Pavlov draws attention to another side of the issue as well — namely, how significant volumes of state support are distributed. In his assessment, over the past two years the state has more often supported already stable projects, whereas access to assistance for some farmers may depend on relations with regional authorities. Pavlov also points to the risks of state support being concentrated among large players.
