Massive embezzlement uncovered at Andijan State University: Rector, chief accountant and other officials jailed

The accused include Alimjon Mahmudov, chief accountant since 1998; former rector Akrom Yuldoshev; several accountants; the chief auditor; a teacher; and others. The court ruling states that the 13 individuals formed an organized group, assigned roles among themselves, and engaged in systematic embezzlement of state funds.

The funds were misappropriated through various fraudulent schemes involving stipends, tuition fees, incentive payments, dormitory fees, and procurement processes. In many instances, student signatures and documents were forged.

The group misappropriated public funds in the following ways:

• Between 2019 and 2023, they fabricated student signatures in 8 separate incidents to falsely increase the number of scholarship recipients. Although records showed that stipends had been distributed in cash, the students never actually received the funds. This resulted in a loss of 32.094 billion UZS.
• From 2021 to 2023, they inflated the number of students eligible for incentive payments, forged signatures, and created duplicate fake payment slips. The funds were then deposited into university accounts for tuition, misappropriating 2.697 billion UZS.
• They also misused 14.408 billion UZS in tuition payments received in cash by entering false payment records into the UzASBO software system used for student financial histories.
• Additionally, between 2019 and 2023, they embezzled 2.663 billion UZS in dormitory rental fees that were falsely reported as received by the university but never officially deposited.
• A further 545 million UZS were misappropriated through irregularities related to public procurement.

Alimjon Mahmudov laundered proceeds from his criminal activity by registering seven different vehicles in the names of close relatives. Among these was a BMW X7, valued at 2.064 billion UZS, registered in his son’s name in 2023. In October of the same year, he transferred 6.621 billion UZS obtained through illegal activity to the bank card of an acquaintance of his son, making it appear as though it was a personal deposit.

The court documents also reveal that Mahmudov and the rector misappropriated employee incentive and bonus payments using forged documents.

During the court hearings, Mahmudov partially admitted guilt. Former rector Akrom Yuldoshev, however, denied the charges. He acknowledged certain administrative shortcomings during his tenure but rejected the accusation of establishing a criminal group or falsifying documents to violate budget regulations.

“I’m a biology teacher by profession. While serving as rector, I lacked sufficient understanding of accounting, which made it difficult to oversee the university's financial operations. My focus was on educational development, youth programs, and fulfilling local government directives. Since I’m not an economist, I trusted Chief Accountant Alimjon Mahmudov,” Yuldoshev said in his testimony.

“I did not benefit from the embezzled funds. The university had a vice-rector for finance, an internal audit department, and a financial planning office. I failed to properly supervise them. I consider my mistake to be a lack of oversight over subordinate staff who misappropriated such large sums.”

During the investigation, Yuldoshev voluntarily repaid over 1 billion UZS and claimed he was unaware of the fake entries in the UzASBO system that led to the misappropriation of 14.408 billion UZS in tuition payments between 2019 and 2023.

Twelve of the thirteen defendants were found guilty under the relevant articles of the Criminal Code and sentenced to various prison terms:

• Alimjon Mahmudov was sentenced to 6.5 years in prison and fined 310 times the base calculation amount (BCA). He was also banned for 3 years from holding any positions involving financial or official responsibility in state bodies or organizations with state participation.
• Former rector Akrom Yuldoshev received a 6-year prison sentence, a similar 3-year professional ban, and a fine equal to 310 BCAs.
• Azam Hamroqulov, a university lecturer, was sentenced to 3 years of corrective labor, with 20% of his salary withheld as state income, and was fined 300 times the BCA.

To compensate for the 53.698 billion UZS in damages to the university, the following payments were made into a special deposit account managed by the State Security Service (SSS) of Andijan Region:

• Alimjon Mahmudov (chief accountant): 31.078 billion UZS
• Iskandar Isroilov (accountant): 5.175 billion UZS
• Akrom Yuldoshev (rector): 1.168 billion UZS
• Nodir Roziboyev (head of administration): 500 million UZS
• Dilshod Abdimuminov (chief auditor): 442 million UZS
• Lutfullo Soliyev (head of finance and planning): 145 million UZS
• Shukhrat Mamajonov (treasurer): 120 million UZS

In addition, seven vehicles, one hotel, three residential properties, and gold jewelry have been confiscated and will be sold, with proceeds used to cover the losses.