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Kyrgyz Report: July 31, 1999


31 July 1999

PRESIDENT AKAYEV ON ECONOMIC CRIMES.
President Askar Akayev held a special meeting of leaders of the law enforcement bodies in Bishkek on 19 July. The president praised their activity saying it is getting more professional. According to Akayev, about 70 percent of the damage to the state budget from economic crimes is compensated by the activities of law enforcement bodies. However, the damage is about 600 million soms a year (about $15 million), 5,650 cases of economic crimes were registered in Kyrgyzstan in the last 18 months, and about 1,700 officials have been accused of corruption. Akayev said that the shadow economy is about 10-12 percent (or according to some estimates, 26 percent) of the gross domestic product.

President Akayev decorated a large group of officials with Glory and Valor Orders, marking their contribution to the fight against economic crime.

GOVERNMENTAL MEETING ON ECONOMIC SITUATION.
Prime Minister Amangeldi MurAliyev held a special meeting devoted to current socio-economical situation in the country, which was alattended by Finance Minister Sultan Mederov, Minister of Agriculture Emil Uzakbaev, Minister of Labor and Social Affairs Imankadyr Rysaliev, Chairwoman of the Social Fund Roza Aknazarova.

It was announced at the meeting that the 10-percent increase of the agricultural output planned for 1999 would not be reached. The government now owes the citizens 808 million soms (about $20 million) for salaries; 265 million soms (about $6.6 million) for pensions, and 167 million soms (about $4 million) for social allowances.

STATE BUDGET DRAFT FOR 2000.
The Finance Ministry announced in Bishkek on 29 July that it has worked out the draft of the state budget for 2000. According to the draft, state revenues would be about 10,230 million soms (about $255 million) and expenditures about 10,436 million soms (about $260) in 2000. According to the draft, 2,000 million soms of revenues would be formed from foreign loans. Also, Kyrgyzstan will have to pay $79 million of in foreign debts next year, including 38-million-dollar in interest. The draft will be discussed at the governmental meeting to be held by President Askar Akayev on 30 July.

SIEMENS BUYS CEMENT PLANT IN KYRGYZSTAN.
The State Property Fund announced in Bishkek on 29 July the results of the international investment tender on selling the cement plant in the town of Kant. The tender was announced on 25 February 1999.

According to the Fund, the tender was won by a SIEMENS branch enterprise in Luxembourg. It will pay for the plant $5.1 million. Also, SIEMENS will make investments of $16.3 million for reconstruction and modernization of the plant in 4 years and will donate an additional $1.5 million into the infra structures of Kant town.

FIRST RESULTS OF HARVEST.
The Ministry of Agriculture announced in Bishkek on 29 July that grain crops from 151,000 hectares have already been collected, representing 22 percent of the sown area. 382,000 metric tons of corn has been collected. Average productivity is 25 metric centners per hectare.

THREE MORE GENERALS IN THE COUNTRY.
The presidential press service announced that President Askar Akayev signed a decree on 29 July giving three persons the rank of major-general. They are: Abdylda Suranchiev, head of the Bishkek city police; Bolotbek Nogoibaev, head of the Osh regional police; and Avtandil Sydykov, head of the Bishkek city tax police.

According to the same decree, salaries to employees of the Defense and Interior ministries will be increased by 20 percent beginning 1 September.

NEW POLITICAL PARTY.
Member of Parliament Dooronbek Sadyrbaev announced in Bishkek on 29 July that the founding conference of his Kairan El party would be held in Bishkek on the following day. Sadyrbaev is a prominent film-maker and poet. His five-serial film "Kairan El", about the uprising against Russian authority in 1916, was a significant political event in Kyrgyzstan during perestroika.

PARTIES TRY TO FORM A JOINT BODY.
Representatives of five political parties held a meeting in Bishkek on 28 July and announced that they would form a joint political council. One representative from each party will be included in the council. Leaders of the Erkin Kyrgyzstan (ErK), Communist, My Country, People's and Republican parties took part in the.

They announced at the meeting that they are against President Askar Akayev's proposal to amend the Election Code, passed in the parliament earlier this year. According to the Code, only those parties registered with the Ministry of Justice not later than one year before the elections could take part in the elections. Akayev proposed last June to shorten the period to 6 months.

The founding conference of the party Adilet, which has been organized to support President Akayev, will be held in Bishkek on 30 August. The next parliamentary elections are expected to be held in February 2000.

AGREEMENT WITH GERMANY ON STANDARDIZATION.
The state agency on standardization announced in Bishkek on 28 July that an agreement with the German center on standardization had been signed in Germany recently. The Kyrgyz agency will try to introduce and use German industrial standards in Kyrgyzstan.

SMALL FILLING STATIONS WILL BE ABOLISHED.
The Bishkek city administration announced in Bishkek on 28 July that all small filling stations in the city will be abolished by 1 October 1999. According to the administration, the filling stations are not organized properly and they ill-equipped. The administration will hold negotiations with their owners.

There are about 50 small filling stations in Bishkek now, founded by small firms and individuals. Petrol prices have been increased by 5 percent in Bishkek in the last 2 weeks.

CITY ADMINISTRATION REORGANIZED.
Newly appointed spokesman for the Bishkek city administration, Kairat Birimkulov, announced on 28 July that the reorganization of the administration has been completed. There are 5 vice mayors, a manager and 5 departments in the administration now. The new Mayor of Bishkek, Medetbek Kerimkulov, was appointed on 12 July replacing Felix Kulov, who resigned last April accusing President Askar Akayev of undemocratic rule.

RATE OF THE SOM.
Exchange offices in Bishkek sold one US dollar for 41 soms on 28 July. The rate of the som has been 38-40 soms to the $1 in the last two weeks. According to the National Bank, the rate of the som was 39.97 soms to the dollar at the inter-bank market in Bishkek on 28 July, and $170,000 were sold there.

REORGANIZATIONS IN GOVERNMENT AND ITS BODIES.
The presidential press service announced in Bishkek on 27 July that President Askar Akayev had signed a decree on transforming the Kyrgyzaltyn state gold concern into the Kyrgyzaltyn joint-stock company. According to the decree, a corporate management should be introduced in the company.

President Akayev fired the president of Kyrgyzslatyn, MP Dastan Sarygulov, on 23 July and appointed his deputy Almazbek Jakypov as acting president. According to local experts, Sarygulov had been against the corporate management.

Deputy head of the government administration Bolot Kudaibergenov announced in Bishkek today that reorganization of the government had been completed. PM Amangeldi Muraliev, appointed last April, has formed 4 directorates with 18 sections instead of the previous 9 departments in the government. 30 percent of the staff has been changed. However, total number of staff members remains the same - 117 people.

NATIONAL PROGRAMS OF THE GOVERNMENT.
According to the governmental press service, Prime Minister Amangeldi MurAliyev held a meeting in Bishkek on 27 July on implementation of the national program on introducing corporate management at the Kyrgyz enterprises. The Asian Development Bank allotted for the program $40 million in 1997. Presentation of the national program on food security of Kyrgzystan was held in Bishkek the same day. According to the governmental press service, the program has been worked out with the help from the European Commission.

KYRGYZSTAN OWES THE UN $1 MILLION.
Zamira Eshmambetova, Kyrgyz representative to the UN, announced in Bishkek on 27 July that Kyrgyzstan owes the United Nations more than $1 million for membership fees. If the government cannot pay at least half of the sum by September session of the UN General Assembly, Kyrgyzstan could be deprived of the right to vote at the session. According to Eshmambetova, the government has no money to pay the debt.

PROTEST ACTION BEING PREPARED.
The People's Party announced in Bishkek on 27 July it is preparing a public protest action. Some of its leaders were persecuted in the Issyk-Kul and Naryn regions in recent weeks. Local authorities prevented them from meeting with local residents. District court in the town of Kochkor has sentenced MPs Daniyar Usenov and Bakyt Beshimov to pay fine for holding an unsanctioned meeting.

According to the Kyrgyz Committee for Human Rights (KCHR), there are conflicting reports on MP Bakyt Beshimov. The Asia Plus radio station reports today that Beshimov has been arrested. MP Adaham Madumarov, the other leader of the People's Party, told the KCHR, that Beshimov is in Germany now.

GENERAL MEETING OF THE BAKAI COMPANY.
The leadership of the Bakai joint-stock company announced in Kara-Balta on 27 July that a general meeting of its shareholders will be held early in August. Foreign shareholders have already arrived in Kyrgyzstan. According to reports from the Bakai headquarters, more than 50 percent of the shares of the company are in hands of the foreigners.

The Director General of the company, Mukambet Ibragimov, was arrested on 15 July on charges of tax evasion. The company sued the State Tax Inspection and lost the case in the Bishkek city Arbitration Court on 6 July, being sentenced to pay 300,160,000-som (about $70,000) fine. According to the court, Bakai did not pay about 160-million-som taxes in the last two years exporting alcohol products to Kazakhstan and Uzbekstan. Bakai said it acted under the special inter-governmental treaties, but it had appeared that Kazakhstan has not ratified them. Bakai had appealed to the Arbitration Court of Kyrgyzstan.

NEW GOVERNMENT APPOINTMENTS.
The presidential press service announced in Bishkek on 27 July that President Askar Akayev has appointed Vice Prime Minister Esengul OmurAliyev Kyrgyz representative at the Economical Council of the CIS. Also, the Kyrgyz representative to the international organizations based in Geneva, Omar Sultanov, has been appointed Kyrgyz ambassador to Switzerland.

SHANGHAI AGREEMENT SUMMIT IN BISHKEK.
Foreign Minister Muratbek ImanAliyev announced in Bishkek on 26 July that a summit of presidents of the states which signed the border security agreements in Shanghai in 1996, will be held in Bishkek on 25 August. According to Imanaliev, leaders of China, Kazakhstan and Tajikistan have agreed to come to Bishkek and Russian Foreign Minister Igor Ivanov has confirmed in Singapore that the summit would be held in Bishkek.

RESHUFFLE IN THE GOVERNMENT.
Prime Minister Amangeldi MurAliyev presented newly appointed ministers to the ministries' staffs on 26 July. Several ministers and some other high official were sacked by the President last Thursday and Friday. Sultan Mederov, former director of the State Property Fund, has been appointed finance minister. Tursunbek Bekbolotov, former rector of the Jalal-Abad university, has been appointed minister of education, science and culture. Imankadyr Rysaliev, former department head in the presidential administration, has been appointed minister of labor and social affairs. Tashkul Kereksizov, former director of the customs inspection, has been appointed director of the state property fund.

The governmental press service announced on 26 July that sacked minister of labor and social affairs Mira Jangaracheva has been appointed by the prime minister as deputy governor of the Chu region. Sacked minister of education, science and culture Sovetbek Toktomyshev was appointed coordinator of an international telecommunication project on 24 July.

Also, Umutkan Tynalieva has been appointed by the prime minister as deputy minister of education, science and culture. Jamilya Alymbekova has been appointed deputy minister of labor and social affairs. DuishenAliyev and Zakirov have been appointed deputies to the chairman of the State Property Fund.

According to an anonymous official of the government, head of the Bishek city tax police Murat Saralinov will be appointed chairman of the Tax Inspection soon. Member of Parliament Jolbors Jorobekov is expected to be appointed chairman of the Governmental Commission on Religious Affairs, replacing Emilbek Kaptagaev. Kaptagaev will be appointed deputy governor of the Issyk-Kul region. Deputy director of the Tax Inspection Anarbek Satybaldiev will become soon director of the State Treasury.

EU HELPS KYRGYZSTAN.
Chairman of the State Commission of Foreign Investments Urkalyi Isaev announced in Bishkek on 26 July that the EU promised to give Kyrgyzstan financial support at the meeting of the Council on cooperation between EU and Kyrgyzstan, held in Brussels on 20 July. According to Isaev, the EU will give Kyrgyzstan a 21-million-euro help in 1999 and 8.5 million euro of it will be used to support state budget of Kyrgyzstan. Kyrgyz governmental delegation, led by Prime Minister Amangeldi Muraliev, took part in the meeting.

ANTHRAX IN THE SOUTH.
The Ministry of Health Care announced in Bishkek on 26 July that six people have been registered with anthrax in the Kara-Suu district of Osh region. They have eaten infected beef. Also, ten people with anthrax have been hospitalized in the Bazar-Korgon district of neigboring Jalal-Abad region - 6 people last week and 2 persons yesterday.

NEW "POWER PARTY" IS BEING FORMED.
The founding conference of the regional branch of the new Adilet party was held in the town of Jalal-Abad on 24 July. The governor of the Jalal-Abad region, former prime minister Kubanychbek JumAliyev was elected head of the regional branch of the party at the meeting. It was announced at the conference that the Adilet party is being formed to support President Askar Akayev. Founding conference of the party will be held in Bishkek on 31 August.

PRESIDENT FIRES GOVERNMENT OFFICIALS.
President Askar Akayev fired several high state officials on 23 July.

Finance Minister Marat Sultanov, Minister of Education, Science and Culture Sovetbek Toktomyshev, Minister of Labor and Social Affairs Mira Jangaracheva has been sacked. Also, President of the Kyrgyzaltyn state gold company has been fired, according to Presidential press secretary Kanybek Imanaliev. According to Imanaliev, Sultanov has resigned voluntarily. Jangaracheva and Toktomyshev will be appointed to other posts.

According to the same decree, new persons have been appointed instead of the sacked officials. Sultan Mederov, Director of the State Property Fund, is appointed Finance Minister. Tursunbek Bekbolotov, rector of the university in the town of Jalal-Abad, has been appointed Minister of Education, Science and Culture. Imankadyr Rysaliev, department head in the presidential administration, has been appointed Minister of Labor and Social Affairs. Tashkul Kereksizov, Director of the Customs Inspection, has been appointed Director of the State Property Fund.

According to Imanaliev, President Akayev signed another decree on 22 July, sacking General Bakirdin Subanbekov, Director General of the Munai state oil company. The company was formed by the presidential decree earlier this year to monopolize oil import to the country. On 5 July, President Akayev deprived the Munai of the right to issue licenses to other companies to import oil. Nikolai Yefremov, deputy to Subanbekov, has been appointed acting director general.

The presidential press service announced in Bishkek on 24 July that President Askar Akayev had appointed Sovetbek Toktomyshev national coordinator of an international telecommunication project. Toktomyshev was sacked from the post of minister of education, science and culture on 23 July.

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