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Corruption

Uzbekistan Ratchets Up Drive Against “Evil” of Corruption

Uzbek President Shavkat Mirziyoyev announced a major shakeup of Uzbekistan’s campaign against corruption on Wednesday, ordering the dismissal of the heads of anti-corruption bodies in 117 ministries and departments and saying many officials had fostered mistrust by failing to deliver clean government as promised. Mirziyoyev, who took office in 2016, described corruption as an obstacle to Uzbekistan’s efforts to reform its economy. He said that, while there had been progress toward transparency, virtually every sector in the nation, including the media, schoolteachers, non-governmental groups and neighborhood authorities, should mobilize alongside the state to fight the scourge. “Corruption is such an evil that it undermines people's trust in the state, the Constitution and laws, and becomes a serious threat to sustainable development and security,” Mirziyoyev said at a meeting of the National Anti-Corruption Council, which was established in 2020 to lead efforts to curb graft. International groups that study corruption have long said that autocratic tendencies, opaque bureaucracy and weak justice systems in Central Asia make it hard for those countries to get a comprehensive grip on the problem and hold the powerful – regardless of their political allegiances - to account for any wrongdoing. Even so, Kazakhstan has taken some notable steps, expanding its outreach to other countries in an effort to recover stolen assets and considering the establishment of a public register of officials convicted of corruption-related offenses. Uzbekistan has similarly made advances, while falling short on enforcement and other pledges. A 2024 report by the Organisation for Economic Co-operation and Development noted that prosecution of corruption offenses in Uzbekistan “is generally ensured, but more efforts should be directed at countering high-level corruption;” that there is no specialized legislation related to the protection of whistleblowers; and that while Uzbekistan has a business ombudsman institution, “companies do not report cases of corruption for fear of negative repercussions from the state.” Mirziyoyev’s remarks, which included scathing criticism of the alleged passivity of some officials, appeared designed to give new momentum to the kind of openness that his government deems essential to a successful, diversified economy. “The Prime Minister was instructed to dismiss the heads of the "internal anti-corruption control" structures in 117 ministries and departments and replace them with honest, dedicated and professional personnel, and to set clear tasks for them,” Sherzod Asadov, the presidential press secretary, said in an account of the meeting that he posted on Facebook. Ministers will directly employ regional compliance officers and “take political responsibility and personally answer for corruption in the entire system,” according to the account. Uzbekistan’s Minister of Emergency Situations, Abdulla Kuldashev, was recently fired because of fire safety bureaucracy and legal violations, the president said. He also expressed frustration that he had to personally instruct measures against wasteful spending in investment and healthcare programs last year, resulting in the saving of several hundred million dollars. "But why should these works begin after the president gives an order?" he said. One measure that Uzbekistan previously introduced is an index that rates the openness of...

Moldova Corruption Asset Recovery Bulgaria Anti-Corruption

Recovering Assets: Kazakhstan’s Prosecutors Expand Network to Moldova, Bulgaria

Kazakh prosecutors who focus on reclaiming national assets are sharing ideas and experiences with counterparts from Moldova and Bulgaria, two eastern European countries where anti-corruption investigators have faced big challenges. The Asset Recovery Committee of the Prosecutor General’s Office of Kazakhstan signed agreements in those nations in February, increasing the international collaboration that is essential to tracking down stolen wealth. Kazakhstan is building ties with foreign jurisdictions and institutions such as Interpol as it seeks to get back illegally acquired assets valued in the billions of dollars, much of it funneled out of the Central Asian country by powerful business and political figures over many years. “Strengthening partnerships in asset recovery plays a crucial role in combating illicit enrichment and ensuring transparency and accountability in financial systems worldwide,” said the Kazakh committee, which held a ceremony with the National Anti-Corruption Center of Moldova in Chișinău, the Moldovan capital. The Moldovan side discussed its national digital platforms, legal framework, and procedures for asset seizure, freezing, and management. The Kazakh side explained Kazakhstan’s asset recovery law and how recovered funds are being reinvested in social projects. Some money has been earmarked for facilities such as schools and medical facilities. Kazakh prosecutors also signed a deal with the Commission for Illegal Asset Forfeiture of Bulgaria in Sofia, the Bulgarian capital, allowing for “active collaboration in the tracing, identification, seizure, and repatriation of assets,” the Kazakh asset recovery committee said. Kazakhstan’s 2023 asset recovery law, described by the government as in line with “international standards,” has aided the country in successful efforts to repatriate some lost wealth. Partners such as the United Nations Office on Drugs and Crime have encouraged Kazakhstan to be transparent about how the recovered funds are used as a way to build confidence among Kazakh citizens who are worried about corruption. There have also been concerns that the law could be used selectively, targeting some suspects and sparing others, but Kazakhstan’s international outreach has received high marks in many circles. Bulgaria has made some progress against graft, but still has a lot of work ahead. In a report published last month, the Council of Europe’s anti-corruption body said Bulgaria had fully implemented seven of its 28 recommendations to prevent corruption and promote government integrity. Of the other 21 recommendations, 11 have been partly implemented and 10 have not been implemented. Moldova´s chief anti-corruption prosecutor, Veronica Dragalin, announced her resignation last month because of a governing party bill that would merge her office with the office of organized crime prosecutors. Dragalin, who previously worked as a U.S. federal prosecutor, said the change would undermine national security and benefit people involved in crime. Bulgaria is in the European Union; Moldova has applied for membership. A 2024 index compiled by Transparency International ranks countries by perceived levels of public sector corruption – 0 is very corrupt and 100 is very clean. Kazakhstan scored 40, up one point since 2023; Bulgaria scored 43 points, down two points since 2023; and Moldova also scored 43, up...

Transparency International Corruption Perceptions Index Corruption

Turkmenistan Ranked Worst in Central Asia in 2024 Corruption Perceptions Index

Turkmenistan has once again ranked among the world's most corrupt countries, placing last in Central Asia in Transparency International’s Corruption Perceptions Index 2024. According to the index, Turkmenistan ranked 165th out of 180 countries, scoring 17 out of 100 points. This marks a decline from the previous year, when the country scored 18 points and was ranked 170th. Among other Central Asian nations, Tajikistan ranked 164th with 19 points, while Kyrgyzstan placed 146th with 25 points. Uzbekistan ranked 121st with 32 points, and Kazakhstan was the highest-ranked in the region at 88th place with 40 points. Russia, with 22 points, was ranked 154th. The report highlights that authoritarianism and weak judicial systems remain key drivers of corruption in Central Asia. Denmark, Finland, Singapore, New Zealand, and Luxembourg topped the index as the least corrupt countries. Meanwhile, Yemen, Syria, Venezuela, Somalia, and South Sudan were ranked among the most corrupt, with South Sudan finishing last at 180th place. Transparency International warns that corruption remains a significant global threat, even in efforts to combat climate change. According to the organization, corrupt practices hinder emissions reductions, slow adaptation to climate change, and severely impact sustainable development. "While 32 countries have significantly reduced corruption since 2012, in 148 nations the situation has either remained unchanged or worsened. The global average remains at 43 points, and more than two-thirds of countries score below 50. As a result, billions of people continue to live in environments where corruption undermines their rights and quality of life," Transparency International stated in its report.

Legislation Parliament Corruption Trump Administration Anti-Corruption

U.S. Suspends Enforcement of Foreign Bribery Law: Should Kazakhstan Be Worried?

U.S. President Donald Trump has issued an executive order suspending enforcement of the Foreign Corrupt Practices Act (FCPA), effectively allowing U.S. companies to offer bribes to foreign officials and politicians. This decision is expected to prompt tighter scrutiny of potential corruption among officials in Kazakhstan. On February 12, 2025, Trump signed an executive order pausing enforcement of the FCPA, a landmark anti-bribery law that has regulated U.S. business practices abroad since 1977. The order directs the U.S. Department of Justice to suspend enforcement of the law, which previously criminalized bribery of foreign officials by American companies. Trump argued that the FCPA puts U.S. businesses at a competitive disadvantage internationally. “The law looks good on paper, but in practice, it's a disaster,” Trump stated, emphasizing that excessive regulatory oversight harms U.S. economic and national security interests. Under the FCPA, companies and individuals could face up to 15 years in prison and fines of up to $250,000 for offering or coordinating bribes. The law was enforced in 24 cases in 2024 and 17 cases in 2023. Trump’s executive order tasks the attorney general with reviewing the law’s provisions. U.S. companies have previously been linked to corruption scandals involving high-ranking Kazakhstani officials. The most infamous case, known as Kazakhgate, dates back to the late 1990s. American businessman James Giffen was accused of funneling tens of millions of dollars in bribes, along with luxury gifts, to secure access to Kazakhstan’s vast oil reserves. The investigation implicated former President Nursultan Nazarbayev and ex-Prime Minister Nurlan Balgimbayev, who allegedly received payments through offshore accounts in exchange for favorable investment conditions. However, Kazakhstani officials were never formally charged, and Giffen ultimately received a minor fine. In December 2024, Mazhilis deputy Yermurat Bapi warned that a similar scandal — dubbed Kazakhgate-2 — could soon unfold. “According to my information, a new grandiose scandal is brewing in the United States,” Bapi stated in an interview with Elmedia. “The U.S. Department of Justice is preparing a new criminal case against global kleptocrats who previously relied on American companies, insurers, and consultants. If they used these services, they will face prosecution.” Speculation surrounding Kazakhgate-2 intensified after Nazarbayev’s December 2024 trip to Moscow to meet with Russian President Vladimir Putin. However, Trump’s decree has now cast doubt on whether the case will proceed. Another major corruption-related dispute involving Kazakhstan is the Stati case. Since 2010, the Kazakhstani government has been embroiled in legal battles with Moldovan oligarchs Anatol and Gabriel Stati over the early termination of their subsoil use contracts. The dispute has led to litigation across multiple jurisdictions, including the U.S., U.K., and EU countries, with Kazakhstan's National Fund assets being temporarily frozen. Some sources suggest that Timur Kulibayev, Nazarbayev’s son-in-law, played a role in the case. Corruption concerns are not limited to Kazakhstan. In late January 2025, Russian Prime Minister Mikhail Mishustin publicly criticized Kyrgyz authorities for allegedly extorting Russian businesses operating in Kyrgyzstan. “We urge the Kyrgyz leadership to cease administrative pressure on our companies and ensure the protection...

Corruption Allegations Justice Switzerland Corruption

Switzerland to Return $182 Million in Confiscated Gulnara Karimova Assets to Uzbekistan

On February 6, in Tashkent, Uzbekistan’s Minister of Justice, Akbar Tashkulov, and Switzerland’s Ambassador to Uzbekistan, Konstantin Obolensky, signed an agreement on the repatriation of confiscated assets, the Uzbek Ministry of Justice reported. Under the agreement, approximately $182 million will be returned to Uzbekistan. These funds were illegally obtained by certain Uzbek citizens and were fully confiscated in 2012 by the Swiss Prosecutor General’s Office as part of criminal proceedings against Gulnara Karimova, the eldest daughter of former President Islam Karimov. The money will be transferred through the United Nations Uzbekistan Vision 2030 Fund Multi-Partner Trust Fund. This is not the first such agreement. In August 2022, Uzbekistan and Switzerland signed a similar agreement in Bern, outlining principles and mechanisms for returning illegally acquired assets. That agreement confirmed that the returned funds would be used for the benefit of Uzbekistan’s population through the UN trust fund. Under the 2022 agreement, Uzbekistan was set to receive around $131 million. With this latest deal, the total amount of repatriated funds will now reach $313 million. The Uzbekistan Vision 2030 Fund will allocate these funds to socially significant projects, particularly in healthcare and education.

Anti-Corruption Law and Order Corruption Legislation

Register of Corrupt Officials to Be Created in Kazakhstan

Kazakhstan is set to establish a public register of officials convicted of bribery and other corruption-related offenses. Some parliamentary deputies are also proposing additional measures, including banning convicted individuals from leaving the country to ensure they return stolen funds. The Kazakhstani parliament is currently reviewing amendments to anti-corruption legislation. Among the proposals, according to Albina Mautova of the Prosecutor General's Office, is the creation of a public register of individuals convicted of corruption offenses. This registry will be accessible to all citizens through the anti-corruption agency's website. “This register will include individuals who have committed serious and particularly serious corruption offenses. Inclusion in the register will be based on the presence of a conviction that has entered into legal force. Removal from the register will occur only in the event of an acquittal or the expungement of the criminal record,” Mautova explained. The legislative amendments also aim to broaden the scope of criminal liability related to bribery. According to Ulan Sarkulov, deputy chairman of the Anti-Corruption Agency, the new provisions would criminalize not only the act of receiving or giving bribes but also the promise or extortion of a bribe. Sarkulov emphasized that these measures are designed to have a preventive effect by addressing bribery at its earliest stages before damage is caused to the state. However, Sarkulov acknowledged the challenges of enforcement. “The investigative practices of other countries show that proving the promise or extortion of a bribe is difficult. There will never be widespread prosecutions here. International experience demonstrates only a handful of such cases globally,” he noted. Mazhilis deputy Azat Peruashev has called for an additional provision to bar convicted corrupt officials from leaving Kazakhstan. He argues that such a restriction would help recover stolen assets taken out of the country. “As our experience in recovering capital shows, the most effective measure is a ban on traveling abroad. Major corrupt officials often don’t simply take bribes in cash; they transfer funds to offshore accounts, re-hide them, and make it nearly impossible to trace. Sometimes, even our law enforcement agencies are unaware of how much money they have or where it’s located,” Peruashev stated. He further explained, “These individuals serve reduced sentences or pay fines, then go abroad to access the billions they’ve stolen—wealth they could never have earned legally. If they’re forced to remain in Kazakhstan, they will be more likely to return the stolen funds if they want to use them.” The Times of Central Asia previously reported that, according to Transparency International's 2023 Corruption Perceptions Index (CPI), Kazakhstan was ranked as the least corrupt country in Central Asia, marking a significant achievement in the region's fight against corruption.