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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.

Khrapunov

Ilyas Khrapunov Found in Contempt by U.S. Federal Court

The U.S. District Court for the Southern District of New York has ruled in favor of the city of Almaty and BTA Bank, finding Ilyas Khrapunov guilty of contempt of court. New Verdict in Ongoing Legal Battle Federal Judge John G. Koeltl ruled that Khrapunov had violated a prior court order requiring him to report regularly on his assets. He had previously been ordered to pay $221,285.31 in sanctions. “After an independent review, the Court adopts the Magistrate Judge’s findings, which are well-founded and support a finding of civil contempt,” the judge’s statement reads. “Although Khrapunov has demonstrated an inability to pay the $221,285.31 judgment against him at this time, Khrapunov has failed to comply with the clear and unambiguous court order to submit quarterly declarations regarding his financial status.” The latest ruling reaffirms Khrapunov's obligation to fully disclose assets and make efforts to satisfy court judgments. It also includes provisions for further financial penalties in the event of non-compliance. Additionally, Khrapunov has been ordered to reimburse Almaty and BTA Bank for legal costs arising from his misconduct. A Central Figure in Corruption Scandals Ilyas Khrapunov is the son of former Almaty mayor Viktor Khrapunov and the son-in-law of fugitive banker Mukhtar Ablyazov, figures long entangled in corruption investigations. The Kazakh authorities have accused members of both families of large-scale embezzlement and money laundering. Viktor Khrapunov fled Kazakhstan in 2008 and has resided in Switzerland ever since. He was sentenced in absentia in 2018 to 17 years in prison for corruption-related offenses, a judgment he disputes. Ilyas Khrapunov also left Kazakhstan shortly beforehand. Almaty and BTA Bank continue to pursue legal action in U.S. and European courts, alleging that Ablyazov and his associates siphoned billions of dollars through offshore entities. Investigators assert that Khrapunov Jr. played a direct role in the schemes. Pattern of Legal Violations In December 2022, the Southern District Court in New York ruled against Ablyazov and his associates in the amount of $218 million. In June 2024, the U.S. District Court for the Southern District of New York awarded over $32 million in damages to BTA Bank and the City of Almaty, following a jury verdict against Khrapunov and Ablyazov’s associates, Felix Sater, Bayrock Group Inc., Global Habitat Solutions, and MeM Energy Partners LLC. The jury found the defendants liable for misappropriation of property, unjust enrichment, and money had and received, affirming fraud and money laundering schemes impacting Kazakh institutions. The plaintiffs estimated the total damage caused by Viktor Khrapunov and his wife, Leila, at over $300 million, including stalled development of city land and the "alienation of properties." In a related case, in September 2018, a UK court fined Ilyas Khrapunov $500 million for violating an asset freeze order in connection with Ablyazov’s fraudulent activities.

Corruption

Tackling Corruption in Kazakhstan: The Latest Trends

As previously reported by The Times of Central Asia, anti-corruption efforts are a cornerstone of President Kassym-Jomart Tokayev’s agenda. Court-ordered funds confiscated from corrupt officials have been used to finance public infrastructure: over the past three years, 150 billion tenge have been allocated to build 89 schools. On June 30, Tokayev signed a decree dissolving the country’s standalone Anti-Corruption Agency and transferring its functions to the National Security Committee (NSC), in what officials described as a move to modernize and streamline public administration. A recent analysis by Ranking.kz sheds light on the latest trends, identifying the institutions most often entangled in scandals and criminal investigations. Corruption Reaches Across All Levels Between January and May 2025, the Kazakh authorities charged 640 individuals with corruption-related offenses, representing a 3% decrease compared to the same period in 2024. However, the number of identified offenders rose to 464, up 4.3% from 445 last year. During the same period, 405 individuals were referred to the courts, an increase of 9.2% year-on-year. The largest number of defendants were employees of Akimats and their subordinate departments, totaling 66 individuals, though this figure is one-third lower than in 2024. In addition, 49 police officers, 16 employees from the Ministry of Finance, 11 from the Ministry of Agriculture, and 7 from the Criminal Executive Committee under the Ministry of Internal Affairs were brought to court. Notably, three regional akims were among those referred to court this year, compared to just one in the same period last year. One judge was also prosecuted. In total, 57 individuals from 12 different ministries faced judicial proceedings, up slightly from 54 last year. However, the data does not encompass all divisions; for instance, the figures for the Ministry of Internal Affairs include only selected departments. Bribery Remains the Most Common Offense Bribery continues to be the most prevalent form of corruption, with 167 recorded cases in the first five months of 2025, a 27.5% increase from the previous year. Internal affairs personnel were the most frequently detained for bribery (22 cases), followed by local government officials (13 cases) and employees of the Ministry of Finance (9 cases). In terms of the number of individuals involved, bribery accounted for 99 people. Corruption-related fraud followed, with 71 cases documented, rounding out the top three categories of offenses. Kazakhstan in Global Perspective Kazakhstan ranked 88th out of 180 countries in the 2024 Corruption Perceptions Index published by Transparency International, scoring 40 out of 100. This position is shared with North Macedonia, Suriname, and Vietnam. The index, based on assessments from organizations such as the World Bank and the World Economic Forum, ranks countries from 0 (most corrupt) to 100 (least corrupt). According to the same report, 17% of Kazakhstani citizens who accessed public services in the previous year admitted to paying bribes. By way of comparison, in Denmark and Finland, the top-ranked countries, only 1% of citizens reported such experiences. Within the Commonwealth of Independent States (CIS), Kazakhstan ranks third, behind Armenia (63rd) and Moldova (77th)....