Uzbekistan Reports Budget Fraud Case Worth 643.2 Billion Soums

Tashkent, Uzbekistan (UzDaily.com) — Authorities in Uzbekistan have uncovered alleged embezzlement of 643.2 billion soums in state budget funds following a preliminary investigation conducted by the Department under the Prosecutor General’s Office in cooperation with the Compliance and Anti-Corruption Department of the Tax Committee.

According to investigators, officials from the Tax Committee, the Tax Department of the Bukhara region, Uzbekneftegaz, as well as several commercial enterprises and joint ventures, are suspected of acting in collusion to organise a scheme involving the illegal appropriation of public funds.

The investigation found that, as part of a project to expand production capacities at the Shurtan Gas Chemical Complex, services worth 5.3 trillion soums were exempted from value-added tax. Despite this exemption, VAT amounts were still included in electronic invoices, which led to the formation of unjustified tax liabilities and subsequent reimbursement of funds from the state budget.

Authorities allege that the funds were transferred to the account of one enterprise and later used to settle the debts of another joint venture owed to the state.

A criminal case has been opened under Article 167 of the Criminal Code of the Republic of Uzbekistan, which provides liability for embezzlement through misappropriation or abuse of trust.

Investigative actions are ongoing to establish all circumstances of the case and identify all individuals involved.