Anti-Corruption - The Times Of Central Asia

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Corruption

Kyrgyzstan Strengthens Fight Against Corruption

Kyrgyzstan’s president, Sadyr Japarov, has signed a new law to intensify the fight against corruption by introducing tougher penalties for offenders and eliminating opportunities for them to avoid imprisonment. Under the new legislation, individuals convicted of corruption will no longer be able to pay fines or compensate the state for damages in exchange for avoiding prison sentences. Instead, they will be required to serve a mandatory prison term - even if they confess to their crimes. The new law amends Article 79 of Kyrgyzstan’s Criminal Code by adding Part 1/1. According to this amendment: Offenders who plead guilty and fully compensate the material damage caused to the state for crimes listed under Articles 336-348 (corruption and other offenses against state and municipal interests) must receive a prison sentence. The sentence will be no less than half the minimum term prescribed under the relevant criminal article. Additionally, corrupt individuals will be permanently barred from holding state or municipal positions, regardless of whether their criminal record is later expunged. This law signals Kyrgyzstan’s commitment to eradicating corruption within state structures. Authorities believe it will create the necessary mechanisms to deter corrupt activities and hold offenders accountable. One of the country’s most high-profile corruption cases involved former customs officer and oligarch Raimbek Matraimov, nicknamed “Million.” As previously reported by The Times of Central Asia, Matraimov avoided imprisonment by paying over $200 million to the state, sparking public outrage over leniency in sentencing. The new law addresses such loopholes, ensuring that financial restitution alone will no longer suffice to escape imprisonment. This reform underscores Kyrgyzstan’s broader efforts to strengthen governance, restore public trust, and ensure accountability at all levels of government.

Anti-Corruption

More Than Half of Uzbeks View Nepotism as a Corruption Problem

According to the United Nations, corruption costs developing countries approximately $1.26 trillion annually. Since 2016, Uzbekistan has undertaken significant reforms to combat corruption, including the establishment of the Anti-Corruption Agency, the simplification of public services, and the full digitalization of public procurement systems. A recent study conducted by Uzbekistan's Anti-Corruption Agency, the United Nations Development Programme, and the Anti-Corruption and Civil Rights Commission of the Republic of Korea sheds light on public attitudes toward corruption. The study used surveys, focus groups, and expert interviews, covering all 14 regions of Uzbekistan and gathering responses from 503 participants. Key Findings The study revealed that public understanding of corruption in Uzbekistan often focuses on bribery and nepotism. Over half of respondents identified abuse of office and nepotism as corrupt practices. However, less than 40% considered valuable gifts a form of corruption, with many viewings them as gestures of gratitude rather than bribes. While bribery is widely condemned - 88.4% of respondents disapproved of it - attitudes toward small gifts for good service were more lenient. Sectors Most Affected The study highlighted the sectors most susceptible to corruption: Healthcare and Education: Particularly in higher education. Local Governance: Frequent opportunities for misuse of authority. Traffic Safety Services, Internal Affairs, Roads, and Construction: Identified as high-risk areas, with rural residents particularly concerned about corruption in road construction. Reporting Corruption Despite witnessing corrupt practices, few respondents report such behavior to authorities. Among respondents: Men: 79.2% were slightly more willing to report corruption than women (70.4%). Women: Showed greater interest in using mobile applications or online portals for reporting (85.2% versus 79.2% of men). Persons with Disabilities: Reported corruption less frequently, but expressed a high willingness to use online tools if made accessible. Trust in Anti-Corruption Institutions Trust in anti-corruption institutions varied significantly: Urban Residents: Trusted the media (20.3%) and bloggers (17.3%) more than rural residents. Rural Residents: Had higher trust in the Anti-Corruption Agency (21.4%). Persons with Disabilities: Showed trust in the Anti-Corruption Agency, media, and bloggers. General Public: Less than 5% said they trust no one to address corruption. Moving Forward The findings suggest that while public awareness of corruption is growing, attitudes toward certain practices, such as gift-giving, remain complex. Efforts to increase transparency, provide accessible reporting tools, and build trust in anti-corruption institutions are critical to further reducing corruption in Uzbekistan.

Corruption Allegations

Following Corruption Arrests in Kyrgyzstan, MP Calls for PM Japarov to Resign

At a recent parliamentary session, Kyrgyz MP Elvira Surabaldiyeva called for the resignation of Prime Minister Akylbek Japarov following the arrest of senior officials from the State Tax Service (STS). The arrests stemmed from allegations of a corruption scheme involving electronic invoices that reportedly cost the state 3.2 billion KGS (approximately U$37 million). Accusations Against the Government Surabaldiyeva directly accused Japarov and his government of corruption. Addressing the Minister of Economy and Commerce present at the session, she questioned the administration’s inability to curb bribery. “You collect money from the people, but you cannot eliminate bribery in your country. Why are you surprised that people don’t trust you?” she said. “The Deputy Chairman of the Cabinet of Ministers has acknowledged that the corruption scheme caused 3.2 billion KGS in damage. This is a colossal amount. At the very least, the Prime Minister should resign, and the head of the tax service should face jail time.” Government Response Deputy Prime Minister Edil Baisalov responded to Surabaldiyeva’s claims on social media, defending the government’s record and arguing that tax collections in Kyrgyzstan have nearly tripled over the past five years due to improved governance and administration. “The people see what their taxes are used for and recognize the state’s development,” Baisalov stated. He added that the era of bribing tax inspectors is over, emphasizing the government’s commitment to a “relentless struggle” against corruption within the state apparatus. Background on Corruption Arrests Earlier, Kyrgyz special services arrested three senior tax officials from the STS, accusing them of orchestrating a systematic corruption scheme. The officials face charges under the article “Abuse of official position”. Despite these measures, the accusations against Japarov’s administration have sparked broader discussions about the government’s ability to effectively combat corruption and restore public trust.

Anti-Corruption

Kyrgyz Authorities Raid State Tax Service Offices

Kyrgyzstan’s State Committee for National Security (SCNS) conducted searches across four district offices of the State Tax Service (STS), detaining several high-ranking employees on allegations of abuse of office. According to the SCNS, 30 tax officials were apprehended, including three of the four heads of the State Tax Service in Bishkek. These officials were placed in the SCNS pre-trial detention center on charges related to fraudulent shipping invoices. “During the inspection, it was revealed that major manufacturers and importers of excisable goods - such as alcohol and tobacco products - recorded revocations and withdrawals of shipping documents in the relevant accounting databases, despite continuing to supply these products predominantly to southern regions of the country,” the SCNS stated. The investigation showed that in 2024 alone, tax officials failed to address numerous instances of revoked shipping invoices amounting to $3.7 million. This reportedly enabled large manufacturers and importers to evade taxes. A criminal case has been initiated under Article 337 of the Criminal Code, which pertains to the abuse of official position. Authorities are working to determine the total financial damage caused to the state. Meanwhile, charges are expected to be brought against the detained district heads of the Bishkek STS offices. A court will decide on appropriate legal remedies as the investigation continues.

Crime

Swiss Bank Implicated in Corruption Scheme Linked to Islam Karimov’s Daughter

Swiss bank Banque Lombard Odier & Cie SA faces allegations of violating anti-money laundering regulations concerning funds linked to Gulnara Karimova, the controversial daughter of Uzbekistan’s first president, Islam Karimov. The Swiss Attorney General's Office revealed that the bank managed nine suspicious accounts tied to Karimova’s organization, the "Office," despite clear violations of external regulations and internal policies. A former bank manager was also charged with facilitating the scheme between 2005 and 2012. According to investigators, the "Office" functioned solely as a front to launder funds derived from corruption in Uzbekistan’s telecommunications sector. It reportedly had no legitimate business operations and employed no staff. The investigation found that the banker deliberately provided false information to obscure Karimova’s role as the ultimate beneficiary of the accounts. The individual is also accused of destroying or concealing documents that could have exposed the illegal origins of the funds. From 2011 to 2012, the banker allegedly allowed unauthorized access to a safe linked to the “Office,” enabling the removal of critical evidence supporting fraudulent transactions. Gulnara Karimova was once a prominent figure in her father’s administration, known for her roles as a singer, fashion designer, socialite, businesswoman, and diplomat. At one point, she was even considered a potential successor to Islam Karimov. However, by late 2013, her relationship with her father deteriorated, resulting in her political downfall. By 2014, her residence was raided, and she was implicated in a corruption case involving Swedish telecom giant TeliaSonera. Her legal troubles escalated, with convictions in 2015 for embezzlement, public fund misappropriation, and tax evasion, leading to a five-year sentence. This was extended in 2017, placing her under house arrest alongside her daughter. In 2019, Karimova was moved to a penal colony for violating house arrest conditions. In 2020, she was sentenced to an additional 13 years for crimes including creating a criminal association, extortion, and embezzlement. In September 2023, the Swiss General Prosecutor's Office filed an indictment against Karimova in the Federal Court. Prosecutors allege that foreign companies seeking entry into Uzbekistan’s telecommunications market were coerced into paying bribes through entities within the “Office” structure.' Karimova’s legal troubles extend beyond Uzbekistan. British courts have confiscated properties linked to her, valued at over £20 million. The ongoing investigation into her global operations has drawn attention to her role in one of the largest corruption cases in Uzbekistan’s history. This latest scandal has deepened scrutiny of Karimova’s dealings and raised questions about the accountability of financial institutions enabling such schemes.

Rule of law

Out With the Old and in With the New: From Politicians to Felons: Part Two

The end of the first president of Kazakhstan, Nursultan Nazarbayev’s era coincided with a wave of mass protests across the country. The widely-accepted cause was the death of five children in a fire in a dilapidated annex to a private house, the like of which there are many in the suburbs of Astana. This tragedy occurred on the night of February 4, 2019, when the girls, with ages ranging from a baby to twelve years old, were left home alone. The event sparked furious complaints from mothers of children across the country, and on March 19 of the same year, Nazarbayev resigned, handing power to the next in the constitutional hierarchy, Kassym-Jomart Tokayev, the speaker of the Senate (Kazakhstan's upper house of parliament). High-profile cases of the transition period From that moment until the events of January 2022, the country went through a transitional period, which is often spoken of as having been a time of dual power. By analogy with the “Kremlin Towers” (a popular theory about clans in Vladimir Putin's Russia being engaged in an irreconcilable struggle for resources and influence), the new president's entourage began to be called “Akorda” - after the head of state's residence in Astana. Supporters of Nazarbayev and the idea of his return to the presidency, meanwhile, were known as the “Library” – a reference to the Library of the First President. It was believed that the officials Tokayev inherited from his predecessor were more likely to run reports to the Library than to the Akorda. This division serves to explain how the new president was bound in his ability to implement changes. Tokayev initially announced a course of political, economic and social reforms, but only the latter were implemented, while the rest were sabotaged. Even support from the general public, which Tokayev managed to garner in the National Council of Public Trust, did not help matters.Even under such constraints, however, it was possible to begin a purge of the establishment. For example, in 2020, the country was shaken by the first high-profile criminal case under Tokayev, when Bulat Bakauov, akim of the Pavlodar region and a bellwether of high-profile scandals under Nazarbayev, was accused of abusing his authority and arrested. However, the influence of Nazarbayev's entourage remained strong, so the sentence handed down to the former Akim turned out to be a meagre restriction of freedom for 3.5 years. The court obliged Bakauov to refrain from leaving his residence and regularly report to the probation service. In addition, Bakauov was obliged to engage in a hundred hours of public labor, ordered to return $10,000, and banned from holding public office. In the same year, there was a glimmer of hope that the former Akim of Almaty, Bauyrzhan Baibek - who was elevated to the height of political power by his father's childhood friendship with Nursultan Nazarbayev – would be held to account. Urban legends still circulate about the illegal earnings of Baibek and his team from the reconstruction of the center of...