Massive $2.1 million embezzlement scheme uncovered in Kazakhstan's oil and gas sector

Law enforcement officials in the western Mangistau region have uncovered a staggering $2.1 million embezzlement scheme involving five oil and gas companies.

At the center of the scandal is Oil Transport Corporation LLP, a subsidiary of the state-owned oil and gas company KazMunayGas. Officials from this company allegedly accepted substandard buses from a supplier, with a total value exceeding $3.2 million. The investigation revealed that the cost of these vehicles was artificially inflated by $857,000.

Furthermore, the probe uncovered payments of $235,000 for services of non-functioning special equipment, raising questions about the company's internal controls and oversight mechanisms.

In a related case, West Oil Software, a contractor for Oil Transport Corporation, was found to have paid over $857,000 to individuals who were not actually employed by the company. This included unjustified salary payments to close relatives of the company's management.

As a result of the investigation, five criminal cases have been initiated under charges of misappropriation or embezzlement of entrusted property on a large scale. Four senior officials from the implicated organizations have been detained as part of the ongoing pre-trial investigation.