Crossroads Asia

Swindler or Scapegoat? Provisional Verdict Announced in Large-Scale Kazakh Embezzlement Case

Recent Features

Crossroads Asia | Politics | Central Asia

Swindler or Scapegoat? Provisional Verdict Announced in Large-Scale Kazakh Embezzlement Case

Kazakh charity founder Perizat Kairat sentenced to 10 years for embezzling millions in flood relief funds, raising questions about political ties and public trust in the nonprofit sector.

Swindler or Scapegoat? Provisional Verdict Announced in Large-Scale Kazakh Embezzlement Case
Credit: Pixabay

On July 25, a verdict was delivered in a high-profile embezzlement case in Kazakhstan, sentencing Perizat Kairat to 10 years in prison for fraud. Kairat was charged with laundering 3.5 billion tenge ($6.45 million) through her charity, Biz Birgemiz Qasaqstan (We Are Together Kazakhstan).

Alongside her mother, Gaini Alashabaeva, who was sentenced to seven years in prison, the authorities alleged that Kairat used the money to fund a lavish lifestyle, including purchases of real estate, vacations, and designer clothes. The luxuries seemingly come at the expense of Kazakh citizens who had donated to help compatriots affected by the devastating floods that hit Kazakhstan in 2024.

The case sparked public outrage and generated major media attention due to the scale of the stolen funds. At the same time, some have speculated that the case could damage trust in the charity sector altogether. While Kairat’s lawyer intends to appeal the verdict, maintaining her innocence throughout the trial, Kairat herself has blamed the embezzlement on Kazakhstan’s ruling party, Amanat (formerly Nur Otan).

Although Biz Birgemiz Qasaqstan was established in 2021, reportedly to aid victims of forest fires and, later, civilians in Gaza, it wasn’t until the spring of 2024 that the charity gained national attention. At that time, the country was hit by the most severe floods in 80 years, affecting large parts of Kazakhstan.

As 120,000 citizens were internally displaced, Kairat began raising money for those affected. Funds poured in from all sides, with several major Kazakh banks collectively donating more than $1.5 million. In addition to corporate donations, many ordinary citizens also contributed money to Biz Birgemiz Qasaqstan, raising funds for the distribution of humanitarian aid in the hardest-hit areas.

In total, Kairat’s team raised around $5 million. Of this amount, however, only $1.7 million ended up being used as actual humanitarian assistance. The rest was allegedly pocketed by Kairat and her mother, with court statements revealing that the remaining funds were used to sweeten their personal lives.

Most notably, this included the purchase of a $12,920 Rolex watch, $599,268 spent on apartments around Astana, and multiple cars costing $291,705. What many of these purchases had in common was that they were made in the wake of the spring floods, many even paid for in cash. In addition to the prison sentences, most of the assets seized during the investigation will be used to reimburse victims of the scheme.

Kairat wasn’t the sole founder of Biz Birgemiz Qasaqstan. In fact, there were nine co-founders, many of whom share one key trait: links to the political party Amanat, founded by former Kazakh President Nursultan Nazarbayev.

Although several names were mentioned, one individual stood out during the case: former Amanat Chairman Bauyrzhan Baibek. On July 14, Kairat herself requested that the court summon him for questioning:

“I would like the procedure to begin with the interrogation of the founder of the foundation… I am accused of having allegedly created it with my mother and forged signatures when it was created under the leadership of Baibek. And all the founders … except for me are former or current employees of the party,” Kairat stated in court.

But while Baibek was mentioned by both Kairat and several of the official co-founders who were questioned, he was never summoned.

Despite multiple connections between the Biz Birgemiz Qasaqstan fund and Amanat members, the party has denied any involvement. This was stated, among others, by the leader of the party faction in parliament, Elnur Beisenbaev, in 2024. “This fund has nothing to do with the party, it is a private fund. There are a number of people who are the founders of this fund. The media reported that they are members of the Amanat party. Yes, they are members of the Amanat party… but in 2021 they were activists, volunteers; they had the goal of creating a community where they would develop volunteer activities,” he said.

While the embezzlement case appears far from closed, it is difficult to say whether the appeals process will lead to a different outcome for Kairat, her mother, or anyone else involved. What can be said, however, is that the case has created a trust issue for the Kazakh charity sector.