Corruption - The Times Of Central Asia

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Armed Forces

Turkmenistan’s Army Facing a Growing Exodus of Personnel

Turkmenistan’s Ministry of Defense is attempting to halt mass resignations among officers. Military personnel who have left their units without permission are being offered the opportunity to return to service on the condition that they are transferred to their home region. However, this measure has so far produced little effect and does not address the army’s core problems. Turkmenistan’s Minister of Defense, Begench Gundogdyyev, has sought to revise the government’s approach to the personnel crisis in the armed forces. At a meeting with unit commanders reviewing the results of the first two months of 2026, he addressed the issue of widespread officer resignations. Several commanders reportedly asked him to approve discharge requests for subordinates who had not reported to their units for an extended period. According to a source cited by turkmen.news, the minister reacted sharply and stated that he would not sign any such documents. “Lock them up in the armoury if you must, but don’t let them leave the army,” the source quoted him as saying. A few days after the meeting, some officers reportedly received phone calls from the Ministry of Defense offering them the chance to return to duty. In exchange, they were promised transfers to their home region. Such a practice had not existed previously. Since Soviet times, military personnel were typically assigned to serve in regions other than their own so that, in the event of unrest, they would defend state authority rather than side with local populations. Now, an exception has been made for those seeking discharge after leaving their units without permission, in some cases for more than a year. However, according to sources, almost no one has accepted the offer, and the number of officers wishing to leave the army continues to grow. Officers cite housing as the main problem. Two years ago, a ministerial order abolished the option to privatize service housing, which had previously been available based on length of service. Following this decision, the outflow of personnel reportedly intensified. About a year ago, the Ministry of Defense proposed that officers purchase newly built apartments with their own funds, requiring them to cover 100% of the cost while also prohibiting subsequent resale. Many officers view these conditions as unreasonable. According to them, several years of work abroad, for example in Russia, make it possible to save enough money to buy a home, a car, and secure their children’s future. Military personnel also report insufficient pay, hazing, and corruption affecting not only conscripts but officers as well. As a result, some officers who are unable to formally resign reportedly remain in service until retirement age. Sources claim that morale and discipline in the armed forces have deteriorated to such an extent that any conflict with commanders can prompt an officer to submit a resignation request and stop reporting for duty. The problems facing Turkmenistan’s armed forces come amid broader regional tensions. On February 27, Pakistan’s defense minister, Khawaja Asif, announced what he described as the start of an “open war”...

Healthcare

Tokayev to Personally Oversee Probe Into Medical Insurance Fund Embezzlement

President Kassym-Jomart Tokayev has pledged to personally oversee the investigation into large-scale embezzlement from Kazakhstan’s Social Medical Insurance Fund (SMIF) and has instructed the government to accelerate the rollout of a unified national healthcare information system. The move follows a series of alarming revelations about systemic fraud in the medical insurance system. In January, Prime Minister Olzhas Bektenov ordered that control of the SMIF be transferred to the Ministry of Finance to bring financial flows under tighter oversight. Subsequent audits uncovered widespread violations, including the registration of fictitious patients, the billing of unnecessary medical services, duplicate financing of procedures, and even the provision of treatments to deceased citizens. The findings have been submitted to law enforcement agencies for investigation. Addressing an expanded government meeting, Tokayev stated that fraudulent activity in the social sector had reached “unprecedented proportions,” and emphasized that the Prosecutor General’s Office and other relevant bodies must investigate all instances of wrongdoing, regardless of the statute of limitations or the individuals involved. “I will personally oversee the investigation process,” the president declared. Tokayev attributed much of the abuse to the absence of a unified digital infrastructure in Kazakhstan’s healthcare system. More than 30 separate and unintegrated information systems are currently in use, creating serious gaps in oversight and traceability. In response, the president has ordered the government to finalize the development of a single, centralized state medical information system by December 1. The new platform is expected to provide full traceability of services and financial transactions, and to digitize all SMIF operations. Tokayev emphasized that digitization is essential for ensuring transparency and the proper use of public funds. As The Times of Central Asia previously reported, earlier this year, the government also announced it would cover health insurance contributions for more than one million unemployed citizens.

Corruption

Uzbekistan Uncovers Large-Scale Corruption, Files Charges Against Senior Interior Officials

Uzbekistan has launched criminal proceedings against senior officials in the Ministry of Internal Affairs as part of a sweeping anti-corruption campaign that has exposed extensive financial violations across the country. At a government meeting on January 27, President Shavkat Mirziyoyev announced that investigations had uncovered 53 trillion Uzbekistani som ($4.38 billion) in financial irregularities and misappropriated funds. Of that, damage linked directly to corruption schemes totaled 4.2 trillion som ($347.3 million), according to a statement from the president’s press secretary. Authorities reported that 1.3 trillion som ($107.5 million) in damages has already been recovered, and 55 individuals have been arrested nationwide in connection with corruption-related activities. Among the highest-profile cases is one involving the Ministry of Internal Affairs. Criminal proceedings have been initiated against Deputy Interior Minister Bekmurod Abdullayev and Rustam Tursunov, head of the ministry’s Penitentiary Department. Investigators allege that 186 billion som ($15.38 million) in budget funds were embezzled through fraudulent state procurement schemes within the ministry. “Every single som of state money will be placed under strict and effective control. Responsibility is inevitable, and punishment will be severe,” Mirziyoyev said during the meeting. In addition to budget-related losses, audits also identified more than $8 billion in debt associated with foreign trade operations. Mirziyoyev described the findings as alarming and announced the introduction of internal compliance and anti-corruption systems across government bodies and state enterprises. He also addressed personnel management within law enforcement. Despite mandatory retirement ages, 55 for colonels and 60 for generals, over 300 officers exceeding these limits are reportedly still in leadership roles. By contrast, all top officials in the Ministry of Emergency Situations are currently under 50 years old. Mirziyoyev underscored the need to promote a new generation of professional and accountable young leaders while also harnessing the expertise of retired or soon-to-retire officers through mentorship and youth engagement programs. The meeting concluded with directives to conduct a critical review of officials responsible for oversight and security in state institutions. The initiative is part of a broader effort to strengthen financial discipline and governance throughout the public sector.

Corruption

In Turkmenistan, Government Offices Charge Citizens for Blank Sheets of Paper

In government offices across Turkmenistan, the provision of routine documents is increasingly accompanied not only by official service fees but also by unofficial, unrecorded charges. While these corrupt schemes are nominally presented as “paper fees,” in practice they have become an expected and often unavoidable part of the process. The practice of bribery is not new to Turkmenistan’s public sector. Citizens seeking almost any type of certificate typically pay not only the state-mandated fee but also an unofficial surcharge, money that is not documented on receipts or in public accounts. A particularly telling example is the issuance of marital status certificates at the Ashgabat Registry Office. Just a few years ago, such a certificate cost the equivalent of $2.90 and could be processed in two days. Today, the official fee has increased to $4.20. But the total cost is often higher due to what staff describe as a payment for the sheet of paper used in the application process. The process typically unfolds as follows: visitors are directed by an employee to one of three service windows. There, they are informed of the official fee and instructed where to make the payment. After paying, they return to the same window, where they are handed a blank sheet of paper and asked to sign it, along with a request for an additional $2.90 to cover the application preparation. Sample application forms are posted on the office walls, and, in theory, visitors could fill out their own forms. However, blank sheets are not made freely available. Those who bring their own paper in advance can complete the process at no extra cost. But most visitors, assuming their official payment covers all necessary services, arrive empty-handed. At that point, they are left with few choices: pay the extra fee, leave the office to find a single sheet of paper, or purchase an entire pack, which can cost up to $26.10, an unreasonable expense for a one-time need. Given the long queues at the registry office, most citizens choose convenience over principle and pay the additional $2.90. Over time, this has turned informal paper charges into a de facto component of the bureaucratic process. The total revenue generated through these payments remains unknown and unaccounted for. But for many visitors, the priority is obtaining their documents without further delay. What was once seen as irregular has become normalized, a silent, systemic practice that continues to operate in plain sight, without raising eyebrows.

Corruption

Kazakhstan vs. Eni: Who Is the Key Figure in the Swiss Lawsuit?

Kazakhstan’s $166 billion legal campaign against the oil majors, Shell, ExxonMobil, TotalEnergies, and Eni has expanded to Switzerland. According to Bloomberg, PSA LLP, representing Kazakhstan’s Ministry of Energy, has launched proceedings aimed at strengthening the country’s position in ongoing international arbitration. Astana is seeking roughly $15 million plus interest from several companies and individuals accused of corruption in projects managed by subsidiaries of Italy’s Eni. The Swiss case centers on evidence already presented in courts in the U.S. and Italy, which Kazakhstan aims to use to prove allegations of bribery in arbitration hearings. Documents submitted by Kazakhstan to a U.S. court claim that contractors providing services to Eni implemented an “illegal scheme” to secure inflated contracts. One such contract was allegedly amended eleven times, with its value rising from $88 million to more than $490 million. While several contractors were convicted by an Italian court in 2017, no Eni employees were found guilty. Kazakh journalist Oleg Chervinsky, known for his coverage of the oil and gas sector, has highlighted that Kazakhstan is requesting the Swiss court to look into Maksat Idenov, a former first vice president of KazMunayGas, who led negotiations with Kashagan project partners between 2007 and 2008. Chervinsky recalls a dramatic episode in 2010, when Idenov resigned from KazMunayGas via a letter sent from abroad using DHL. He subsequently took a senior role at Eni. A U.S. court has approved his questioning for use in the Swiss proceedings, and his representative says he has already testified. “New revelations await us!” Chervinsky asserted. That confidence may be justified. A glance at Idenov’s career reveals his central role in Kazakhstan’s energy sector since 1992, when he began as chief legal counsel at the state holding MunaiGas. In 1993, he became assistant to the Minister of Oil and Gas Industry, and by 1995, he was serving as deputy head of the Energy Department for Europe and Central Asia at the International Bank for Reconstruction in Washington, D.C. He returned to Kazakhstan in 1999 as an advisor to then-President Nursultan Nazarbayev on Caspian energy and oil and gas export pipelines. In that role, he worked on the legal status of the Caspian Sea and other strategic projects. Idenov joined Shell in 2004 as regional vice president for strategic and commercial development in the Middle East, South Asia, and the Caspian region. In 2007, he became the first vice president of KazMunayGas. Three years later, in July 2010, he was appointed senior vice president for strategic planning at Eni. During his time at KazMunayGas, Idenov appeared in U.S. embassy cables later released by WikiLeaks. In one, he reportedly told the U.S. ambassador during a private dinner that the four most influential figures around President Nazarbayev were the Presidential Chief of Staff, Sarybay Kalmurzaev, Head of the Presidential Administration, Aslan Musin, State Secretary and Foreign Minister, Kanat Saudabayev, and the tandem of Prime Minister Karim Massimov and Nazarbayev’s son-in-law, billionaire Timur Kulibayev. Another cable described the rationale for Idenov’s appointment as lead negotiator on...

Corruption

Uzbekistan Launches $20 Million School Climate Resilience Project with Restituted Funds

Uzbekistan has launched a $20 million initiative to enhance climate resilience and improve water, sanitation, and hygiene (WASH) infrastructure in schools, marking the first major investment of restituted assets recovered from abroad. The project, titled “Modelling Climate Resilience and WASH in Schools,” officially begins on October 1. It is part of a broader commitment made in April by the Ishonch Fund Management Committee, which outlined how recovered assets from Switzerland would be used to fund education and community development initiatives. The commitment was reaffirmed during the Namangan Poverty Reduction Forum in September. Background: The Ishonch Fund The Ishonch Fund was established under a restitution agreement between Uzbekistan and Switzerland, in accordance with the UN Convention Against Corruption (UNCAC). In February, Uzbek Minister of Justice Akbar Tashkulov and Swiss Ambassador Konstantin Obolensky signed an agreement in Tashkent for the return of $182 million in confiscated assets linked to Gulnara Karimova, daughter of former president Islam Karimov. These funds, seized in Switzerland, are being transferred via the UN Uzbekistan Vision 2030 Multi-Partner Trust Fund. Project Scope and Impact The $20 million project targets 45 rural schools across Uzbekistan. Planned upgrades include access to clean water, modern sanitation, improved heating systems, and renewable energy technologies. Officials say these improvements will reduce energy consumption by 30% and cut greenhouse gas emissions by 50%. The initiative will directly benefit more than 31,500 students, particularly adolescent girls, who will have access to gender-sensitive facilities. Additionally, 2,700 teachers and administrators will be trained in climate resilience, WASH practices, and community engagement. International Support and Oversight Obolensky called the initiative a landmark achievement in the restitution process. “Switzerland is proud to see restitution resources being transformed into visible, corruption-resistant investments that directly benefit the Uzbek people,” he said. “With this project, we are ensuring that 31,500 children will learn in healthier, safer, and more dignified environments, a true symbol of restitution serving development.” At the Namangan forum, Obolensky emphasized that the school modernization project reflects Switzerland’s long-term commitment to ensuring that returned assets support public interests. Governance and Accountability Uzbekistan’s Deputy Minister of Economy and Finance, Ilkhom Norkulov, underscored the project’s alignment with the national reform agenda. “By investing in climate-resilient schools and introducing new governance tools, we are building both infrastructure and accountability for generations to come,” he said. UN Resident Coordinator Sabine Machl added, “By combining clean water, modern sanitation, and climate resilience with transparency and community oversight, we are not only investing in schools but also in trust, equity, and the future of every child.” To ensure transparency, the initiative will be tracked via My Better School, a digital platform that allows communities to monitor budgets, contractors, and timelines in real time. A pilot Integrity Pact will also be used to safeguard procurement processes. Officials say this model of restitution-financed development could guide future national school modernization efforts, while helping align Uzbekistan’s education system with international standards for climate adaptation and gender equality.