Court Orders Former Deputy and Accomplices to Return 805 Million Tenge to State

A court in Petropavlovsk has ruled in favor of the city administration, ordering former deputy of the regional maslikhat Pavel Bulayev and his accomplices to return over 805 million tenge to the state budget. This sum represents the damage caused by their fraudulent schemes involving fictitious contracts.

Pavel Bulayev, who from 2017 headed the communal state enterprise "Treatment, Water Passage and Drainage Structures" while simultaneously serving as a deputy in the North Kazakhstan Regional Maslikhat, was detained by the Anti-Corruption Service in March 2024 on suspicion of embezzling budget funds. His trial began in December 2024 alongside four other defendants: his deputy, a former supply manager, and a lawyer from the enterprise.

Bulayev faced charges of illegal participation in entrepreneurial activity as a person authorized to perform state functions, misappropriation or embezzlement of entrusted property on an especially large scale, and money laundering. His accomplices were tried solely for misappropriation of property on an especially large scale.

The court found that between 2020 and 2022, Bulayev used his official powers and administrative resources to repeatedly conclude fictitious contracts for work and services with his deputy. The individual entrepreneur (IE) and limited liability partnership (LLP) registered to the deputy lacked the necessary equipment and workers to perform the declared tasks. These contracts created an illusion of active work while no real services were rendered, leading to the theft of 348 million 221 thousand 60 tenge.

Similar schemes involved other close associates. The director of the state enterprise signed contracts with their IEs and LLPs for house demolition, vehicle repair, special equipment rental, network construction, and supply of building materials—all deemed fictitious.

During this period, Bulayev acquired an excavator-loader, a truck, and other special machinery which he then leased out. Millions of tenge and hundreds of thousands of dollars also appeared in accounts belonging to his ex-wife. From 2019 to 2022, six apartments in Petropavlovsk were registered in her name and subsequently rented out.

In court, she claimed she received the property not from her ex-husband but from an acquaintance whose name she refused to disclose. Prosecutors presented evidence contradicting this: a note where Bulayev asked his ex-wife to "keep safe" the property while he would "serve his sentence." All defendants pleaded not guilty.

On June 2, 2025, Petropavlovsk City Court sentenced Bulayev to eight years in prison with a lifelong ban on holding public office and confiscation of property. His accomplices received sentences of seven-and-a-half years with confiscation. The court also granted the claim from the Petropavlovsk akimat apparatus for damages totaling over 805 million tenge.

The verdict ordered confiscation of criminally acquired assets held by Bulayev's ex-wife and two relatives: six apartments; a shop; a garage; land plots; a workshop; vehicles including Toyota Land Cruiser, BMW X6, Porsche Macan; plus excavators; trucks; loaders.

An appellate instance later reduced each defendant's sentence to seven years imprisonment lifted seizure from some property registered under Bulayev's ex-wife ordering its return owners overturned lower court ruling regarding civil claim payment material damages

The Petropavlovsk akimat subsequently filed separate lawsuit seeking recovery material damages same amount—805 million651 thousand700 tenge—arguing unlawful actions caused loss must compensated local budget Defendants asked court dismiss claim arguing plaintiff failed prove actual size real damage causal link their actions They insisted part funds went taxes all contractually stipulated works fully performed thus no damage state

Petropavlovsk Court No2 rejected these arguments stating all sums confirmed expert examinations audit final verdict Consequently defendants ordered repay entire claimed amount different shares according inflicted damage This decision has not yet entered legal force