Corruption - The Times Of Central Asia

Viewing results 1 - 6 of 258

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.

Corruption

Swiss Ambassador: Returned Funds to Uzbekistan Support Schools and Social Projects

Switzerland's Ambassador to Uzbekistan Konstantin Obolenskiy has reaffirmed that Switzerland is repatriating assets obtained from criminal sources to Uzbekistan, with the funds being directed toward projects that reduce poverty and improve social infrastructure. Speaking to Dunyo at the III International Forum “From Poverty to Prosperity” in the Uzbek city of Namangan, Obolenskiy expressed admiration for Uzbekistan’s reported progress. “I had the privilege to attend the opening of the forum, and I was deeply impressed by the outcomes announced, how many people have been lifted out of poverty, how new economic and social assistance is being provided, the conditions being created so people can live a dignified life. This information is very important,” he said. The ambassador underscored Switzerland’s direct involvement in supporting Uzbekistan’s anti-poverty efforts. “We are returning to Uzbekistan funds taken from criminal sources, and these funds are being used for social projects that directly contribute to poverty reduction,” he stated. As an example, Obolenskiy pointed to a new initiative being signed at the forum. “Documents are being signed for a project to modernize over forty schools, improving sanitation and hygiene facilities such as toilets and showers, and enhancing the energy efficiency of buildings. All this is done in the interest of the people, for the country’s future.” He emphasized that the asset repatriation process reflects the shared will of both the Swiss and Uzbek governments. “The results achieved in reducing poverty are remarkable and these pleased not only me but all forum participants. In Uzbekistan, we believe every person has the right to fully realize their economic and social potential and live in dignity.” Swiss authorities have long been involved in legal proceedings related to Gulnara Karimova, the daughter of Uzbekistan’s late president. As previously reported by The Times of Central Asia, Switzerland has agreed to return approximately $182 million in confiscated assets linked to Karimova. These funds were seized during Swiss criminal investigations and will be transferred to Uzbekistan through the UN-managed Uzbekistan Vision 2030 Fund. A separate, earlier agreement between the two countries involved the return of around $131 million, also tied to Karimova, using the same trust fund mechanism.

Corruption

Prestige or Coercion? Turkmen Police Questioned Over Costly Leader Watches

Turkmenistan’s Ministry of Internal Affairs has launched an internal investigation after reports emerged that police officers were purchasing high-priced watches featuring images of President Serdar Berdimuhamedov, his father and former president Gurbanguly Berdimuhamedov, and state symbols. According to an internal directive sent to regional departments, police personnel must submit written explanations detailing whether they bought the watches voluntarily or under pressure from superiors. The ministry also announced inspections of police uniforms to ensure compliance with official standards. The directive reminds officers that wearing rings, medallions, or signet rings, aside from wedding bands, is strictly prohibited while on duty. Internal security units have been tasked with monitoring adherence. Prestige or Coercion? The Times of Central Asia previously reported that such watches have become a status symbol within law enforcement circles. Manufactured by Sagat Turkmenistan, the watches feature silver cases with gold plating, gemstone embellishments, and insignias of state agencies. They retail for between 3,000 and 5,000 TMT ($870-1,450). However, many residents allege the watches are frequently used as informal bribes. “If you are told that a criminal case will be brought against you, it means you need to buy such a watch and go to the investigator. This does not mean that the case will be closed. But it’s the first installment,” said a resident of Bayramali with experience of dealing with the police. Watches with white straps are seen as particularly prestigious. Sources say that investigators often request the strap be replaced, at the giver’s expense, to enhance the watch’s appearance. Mandatory Purchases for Civil Servants This phenomenon extends beyond law enforcement. In May 2024, The Times of Central Asia reported that heads of state institutions in the Balkan region were required to purchase similar watches. Prices ranged from 1,500 to 3,000 TMT ($435-870 at the official rate; $75-150 on the black market). High-end models featured portraits of both Berdimuhamedovs, each in differently colored ties, alongside the Turkmen flag and map. Less expensive variants depicted only the president, or a simplified combination of national symbols. The purchase requirement applied to all budget-funded institutions, including schools, hospitals, and transportation agencies. Different “rates” were imposed based on the official’s seniority: lower-level managers paid 1,500 manats, while higher-level administrators paid up to 3,000. The tradition of producing watches featuring national leaders dates back to the rule of Saparmurat Niyazov, under whom such accessories were distributed to schoolchildren and state employees. Serdar Berdimuhamedov has continued this legacy with his own line of commemorative timepieces.

Asset Recovery

From Mansions to Classrooms: Kazakhstan Turns Corruption Assets into Public Good

Kazakhstan is actively reclaiming assets obtained through corrupt practices and redirecting them toward social development. Confiscated properties, including luxury mansions, high-end vehicles, and even ancient jewelry, are being allocated for public benefit, particularly in education, healthcare, and infrastructure. These efforts form part of a broader anti-corruption campaign under President Kassym-Jomart Tokayev, which aims to transform stolen wealth into schools, hospitals, and public services while restoring public trust in government. Luxury Assets Reallocated for Public Use Over the past several years, billions of dollars in assets have been returned to the state budget. On September 5, officials announced that a luxurious mansion formerly owned by convicted ex-Prime Minister and ex-head of the National Security Committee Karim Massimov had been transferred to the Ministry of Education. Located in Astana, the property will be converted into a center for children with special needs. Initially slated for auction, the villa was withdrawn from sale and reassigned for social use. Massimov, who was sentenced in 2023 to 18 years in prison for high treason, attempted coup, and abuse of office, had amassed large amounts of property and luxury goods now being liquidated or redirected to state use. [caption id="attachment_35913" align="aligncenter" width="1303"] Image: National Security Committee of the Republic of Kazakhstan; a luxury mansion once owned by ex-Prime Minister Karim Massimov, complete with a disco bar, private theater, pool, and 30 rooms[/caption] This approach is not limited to Massimov’s holdings. In 2025, assets belonging to Perizat Kairat, the founder of a high-profile charity fund, were confiscated after she and her mother were convicted of embezzling donations meant for flood victims. The case shocked the country, as Kairat had been celebrated for her volunteer work before investigations revealed widespread fraud. She received a 10-year prison sentence while her mother was given seven years. Their seized property included a private house and apartments in Astana, along with luxury vehicles such as a Mercedes-Benz S450, Lexus LX 600, and Mercedes EQS 500. Authorities announced that these assets would be auctioned, with proceeds used to compensate victims defrauded by the foundation. [caption id="attachment_35911" align="aligncenter" width="649"] Image: Instagram; Perizat Kairat in Abu Dhabi[/caption] A Legal Framework for Asset Recovery A legal framework for asset recovery underpins these actions. In July 2023, Tokayev signed the Law “On the Return of Illegally Acquired Assets to the State,” targeting entities involved in large-scale corruption and oligopolistic practices. The law established an Asset Recovery Committee and a state management company to oversee confiscated property. It also created mechanisms to repatriate funds hidden abroad. Since its adoption, Kazakhstan’s Anti-Corruption Agency has recovered approximately 1.12 trillion KZT, ($2.1 billion) in assets and funds. These reclaimed resources are being reinvested in critical sectors. Examples of reallocated property illustrate the scale of the initiative. In Almaty, the Kaisar Tower business center, once privately owned, was transferred to the Kazakh National Women’s Pedagogical University. Another building in the city was handed over to the T. Zhurgenov Kazakh National Academy of Arts. In Astana, three mansions confiscated from corrupt officials are...

Society

Watches Bearing Berdimuhamedov Portraits Become Unofficial Currency in Turkmenistan’s Security Sector

In Turkmenistan, wristwatches adorned with the images of President Serdar Berdimuhamedov and his father, former president Gurbanguly Berdimuhamedov, are increasingly being used as informal bribes by citizens dealing with law enforcement. Chronicles of Turkmenistan reports that these timepieces, once symbols of official loyalty, have evolved into an unofficial currency within the country’s security apparatus. Distributed primarily through the company Sagat Turkmenistan, the watches are embellished with silver-plated cases, gold accents, precious stones, and the emblems of various law enforcement agencies. Prices range from 3,000 to 5,000 Turkmenistani Manat (TMT), or approximately $870-1,450. But few security officers reportedly pay for them out of pocket. Instead, citizens facing potential criminal prosecution are expected to offer the watches as “gifts” to investigators. “If you are told that a criminal case will be brought against you, then you need to buy such a watch and go to the investigator. This does not mean that the case will be closed. But it is the first payment,” said a resident of the town of Bayramali who had prior dealings with law enforcement. The standard version comes with a black leather strap, although a white version is seen as particularly luxurious. In some instances, investigators reportedly request a strap upgrade, an added cost that the briber must cover. The practice is not limited to security services. In May 2024, The Times of Central Asia reported that in the Balkan region, heads of state institutions were required to purchase similar watches featuring the Berdimuhamedov portraits. Prices ranged from 1,500 to 3,000 TMT ($435-870 at the official rate, or $75-150 on the black market), depending on the design and seniority of the buyer. Higher-tier models feature both Serdar Berdimuhamedov in a black tie and Gurbanguly Berdimuhamedov in a red tie, along with the Turkmen flag and a map of the country. Simpler versions show only one portrait, or a portrait combined with national symbols. All public sector entities, including institutions in healthcare, education, communications, transport, and law enforcement, were reportedly compelled to participate. Senior officials were instructed to purchase the higher-end watches, while lower-level managers had to acquire less expensive models. The use of personalized accessories as symbols of political loyalty is not new in Turkmenistan. Under former president Saparmurat Niyazov, watches featuring his image were widely distributed among schoolchildren and state employees. “We saw watches with the president’s image during Niyazov’s time. It is not surprising that Serdar [Berdimuhamedov] has also started producing gift watches with his portraits. Now all that remains is for him to start erecting monuments to himself throughout the country,” remarked an employee of a state-funded organization in the city of Turkmenbashi. What began as a tool of soft propaganda has now transformed into a transactional item, part status symbol, part bargaining chip, in the interactions between citizens, officials, and security services.