Corruption scheme embezzling 643.2 billion soums from state budget exposed in Uzbekistan

A major corruption scheme involving the embezzlement of 643.2 billion soums from Uzbekistan’s state budget has been exposed. The Department for Combating Economic Crimes under the Prosecutor General’s Office reported the case.

According to the department, responsible officials from the Tax Committee, the Bukhara regional tax department, Uzbekneftegaz JSC and several local and joint ventures allegedly conspired to commit violations.

According to pre-investigation materials, although services worth 5.3 trillion soums provided for the expansion of the production capacity of the Shurtan Gas Chemical Complex were exempt from value-added tax, VAT amounts were illegally included in electronic invoices.

As a result, VAT funds were unjustifiably formed in the state budget. Part of these funds was allegedly returned to the bank account of A. LLC, while another part was used to offset S.E. LLC’s VAT liabilities to the state.

Preliminary calculations show that 643.2 billion soums in budget funds were embezzled through misappropriation and embezzlement under the scheme.

A criminal case has been opened under Article 167 of the Criminal Code, which covers misappropriation or embezzlement. Investigative actions are underway.

For reference, Enter Engineering is the general contractor for the Shurtan Gas Chemical Complex expansion project.

Earlier, it was reported that a group of people in Andijan region had been exposed for allegedly embezzling 35.1 billion soums in cashback payments through the Soliq Mobile application.