Dental Clinic Director Suspected of Fraud Involving Damumed System

The Department of the Agency for Financial Monitoring (AFM) for the Almaty region has concluded an investigation into a fraud case involving dental services provided under the state-guaranteed free medical assistance program.

The director of a chain of private clinics entered into contracts with the Social Health Insurance Fund (FSMS) totaling more than 450 million tenge, pledging to provide both emergency and elective dental care to the public.

Instead of providing actual treatment, the suspect organized the entry of false data into the Damumed information system. The database was populated with information regarding orthodontic services (such as bite correction and braces) that were never actually performed.

To give the scheme an appearance of legitimacy, the director illegally accessed:

• The digital accounts of medical staff (doctors).

• Personal data of underage patients who had visited the clinics in the past.

The investigation uncovered 4,597 instances of unconfirmed medical assistance. The total financial damage to the state is estimated at 66 million tenge.

As a result of the proceedings, the court has authorized the following:

• 23 million tenge seized from bank accounts.

• 29 million tenge worth of dental equipment placed under arrest.

The suspect has already voluntarily reimbursed 11 million tenge to the state and is currently under house arrest.

The Agency noted that, in accordance with Article 201 of the Criminal Procedure Code of the Republic of Kazakhstan, further details of the case cannot be disclosed at this time.