Kazakhstan investigates $400 million pension fraud linked to dental clinics

Kazakh authorities are investigating a large-scale financial scheme involving the illegal withdrawal of pension savings, allegedly linked to dozens of dental clinics, with losses exceeding 200 billion tenge (about $400 million).

The Financial Monitoring Agency (AFM) said 42 dental clinics were involved in the scheme, through which more than 200 billion tenge was siphoned off, Kazakhstani media reports.

Investigators say the suspected proceeds were used to buy luxury movable and immovable property and to open new dental clinics registered in the names of third parties to conceal ownership.

Eleven suspects have been remanded in custody for two months, while three others have been placed under house arrest, according to the agency.

The AFM also alleges that doctors issued fraudulent medical commission certificates in exchange for systematic illegal payments. The total amount of bribes received is estimated at 30 million tenge (around $60,000).

Relatives of some of those detained have criticised the investigation and the preventive measures imposed. At least two protests have been held in recent days, with participants claiming the arrests were unlawful.

Family members say they have not been clearly informed who has been recognised as a victim, what damage was caused, or to whom. They also complain that homes have been seized and placed under arrest during the investigation, including properties they say were bought with their own funds, raising further concerns among the families of the suspects.