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

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

The case centers on Pavel Bulayev, who from 2017 served simultaneously as the head of a communal state enterprise "Water Treatment and Drainage Structures" and as a deputy of the North Kazakhstan Regional Maslikhat. In March 2024, he was detained by the Anti-Corruption Service on suspicion of misappropriating budget funds.

The trial of the 53-year-old deputy began in December 2024. He faced charges including illegal participation in entrepreneurial activity by a person authorized to perform state functions, misappropriation or embezzlement of entrusted property on an especially large scale, and money laundering. Four other individuals stood trial with him: his deputy, as well as former supply managers and a lawyer from the enterprise.

According to the court's findings, between 2020 and 2022, Bulayev repeatedly used his official powers to conclude fictitious contracts for work and services with companies linked to his deputy. These companies lacked the necessary equipment and personnel to perform the declared work. Through these sham agreements, they created an illusion of activity while performing no real work, embezzling over 348 million tenge.

Similar schemes were replicated with other individuals close to Bulayev. Contracts were signed for house demolition, vehicle repair, equipment rental, network construction, and supply of building materials.

During this period, Bulayev acquired excavators, trucks, and other specialized machinery which he then leased out. Prosecutors also presented evidence that millions in tenge and hundreds of thousands of dollars appeared in accounts belonging to his ex-wife's name. From 2019 to 2022, six apartments in Petropavlovsk were registered under her name.

In court, she claimed the property was received from an acquaintance whose name she refused to disclose. However, prosecutors presented a note where Bulayev allegedly asked his ex-wife to "keep the property safe," stating 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 each with confiscation.

The court also granted the civil claim from the city administration's apparatus, ordering collective recovery of damages totaling 805 million 651 thousand 700 tenge. Property acquired through criminal means was ordered confiscated from Bulayev's ex-wife and two relatives—including six apartments, a shop, garages land plots vehicles (Toyota Land Cruiser BMW X6 Porsche Macan) excavators trucks and loaders.

An appellate instance later reduced all sentences to seven years lifted seizure from some property registered under Bulayev's ex-wife ordering its return but overturned part concerning civil compensation prompting new lawsuit

The city administration subsequently filed separate lawsuit demanding recovery same amount—805 million+ tenge. Defendants argued claimant failed prove actual damage causal link insisting all contracted works fully performed taxes paid thus no loss occurred

Court No2 Petropavlovsk rejected these arguments stating all sums confirmed expert examinations audit final verdict Consequently ruled recover full claimed amount proportionally among defendants according inflicted damage Decision not yet entered legal force