Ex-manager jailed for embezzling millions via ghost employees at KAZhservice
A former branch manager of KAZhservice LLP has been convicted of embezzlement after hiring ghost employees and stealing company funds. The case, uncovered by an internal audit and anti-corruption investigators, has now concluded with a stricter sentence on appeal.
The manager was first found guilty of fraud after creating fake staff positions and paying salaries to non-existent workers. This scheme allowed the withdrawal of company money for personal gain. A court initially sentenced the individual to two years and nine months of restricted freedom.
An appeal later extended the punishment to three years and six months. The convicted manager was also ordered to repay 6.7 million tenge in damages, which the company confirmed had been fully recovered.
The case began after an internal audit by KAZhservice LLP raised suspicions. The Anti-Corruption Service then conducted its own investigation, leading to criminal proceedings. Despite the verdict, no public details have emerged about changes within the company to prevent similar incidents.
The company has reiterated its zero-tolerance stance on corruption and claims to be tightening internal controls. While the financial losses were recovered, the case highlights ongoing risks in oversight. No further structural reforms have been publicly announced.
