Kazakhstan’s ministry of defense fights corruption

The agency has changed the top management of Askeri Kurylys, a company run by the defense ministry

According to the press service of the Ministry of Defense, the agency changed top executives of the company. Moreover, it has initiated the opening of a criminal case to investigate funds embezzlement in the company.

“As the only shareholder of Askeri Kurylys (the company is a parent entity for Askeri Kurylys Astana), the Ministry of Defense has decided to discharge top managers of the company and to hire a new team,” the press service reported.

As the ministry noted, the defense officials had several meetings with the company’s representatives. Military officials wanted the company to pay off its debts; they were even ready to discuss how this problem may be solved but the company failed to show its willingness to find the problem’s solution.

“The obligations to Askeri Kurylys Astana were carried out by the defense ministry in full; the ministry made payments for rendered services right on time,” the press service said.

In February 2021, the Ministry of Defense reported that Askeri Kurylys Astana (a subsidiary of Askeri Kurylys) which won bidding on construction and repairmen services for the ministry in 2020 has a bunch of debts to its subcontractors. Even though the defense ministry takes no responsibility for companies and can’t intervene in their business activities, the agency has played an active role in this process due to the public resonance of the case.

For instance, the ministry initiated an audit of the company in order to estimate the level of its efficiency as well as to find out how the company meets its obligation to third parties.

Askeri Kurylys joint-stock company was established in 2011. It specializes in the development of design estimation documents; major construction and maintenance of military objects in Kazakhstan. According to the ministry, the anti-corruption agency is responsible for the investigation into embezzlement in Askeri Kurylys.

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