Officials Convicted in Housing Fraud Scheme Targeting Resettled Citizens

In the Uspen District of Pavlodar Region, two employees of the state institution Career Center have been convicted of fraud related to the purchase of housing for internal migrants from southern Kazakhstan.

The officials inflated property prices in contracts to siphon off budget funds. The total damage to the state amounted to 144 million tenge, Orda.kz reports.

The court found that one of the Career Center employees misled the displaced persons. He claimed that under the government program 'Strong Regions – the Driver of the Country's Development,' they would receive four million tenge in assistance — but only if the housing documents reflected an inflated price of eight million tenge.

The relocatees were instructed to transfer the difference to him. This scheme was used to purchase 18 houses. He was sentenced to five years in a medium-security prison.

The defendant O. is found guilty of committing a criminal offense under paragraph 2 of Part 4 of Article 190 of the Criminal Code of the Republic of Kazakhstan and is sentenced to five years of imprisonment in a medium-security penal institution,announced the district court judge, Gulziya Khamitova. 

Another official from the same center was also implicated. He was involved in a single episode, helping a relative carry out a similar fraudulent transaction. He admitted guilt and was sentenced to three years of restricted freedom.

Prosecutors demanded full compensation of 144 million tenge.

However, the Labor Mobility Center stated that part of the amount would be recovered from those who left the district in violation of their settlement agreements. Lawyers, in turn, argue that the housing allocations were approved by a commission and involved not only management but also notaries and property sellers.

According to the regional prosecutor’s office, the fraudulent price inflation scheme was not limited to the Uspen District — it also operated in other areas. The total estimated loss across the region is around 600 million tenge. In some cases, homes were bought for as little as 500,000 tenge, while paperwork showed prices of eight million.

In 2023 alone, 46 families relocated to the Uspen District—but around 60% have already left. Since the program began, over 1,200 people have been resettled there, though only about half have remained.

The Labor Mobility Center stated that the relocation process is now managed electronically and that homes are pre-checked to prevent further violations.

Original Author: Alina Adilova