Tag Archives: government

Kyrgyz corruption report triggers protests

BISHKEK/NOV. 26 — Hundreds of people protested in Bishkek against corruption after a report published by activists accused senior customs officials of taking bribes worth hundreds of millions of dollars.

Chanting “power to the people”, demonstrators waved a cartoon of former customs service chief Raimbek Matraimov who, the authors of the report said, was at the head of the corruption scheme. The demonstrators want him prosecuted and the resignation of the heads of the National Security Committee and the anti-corruption service.

Street level politics and demonstrations are a real force in Kyrgyzstan where revolutions in 2005 and 2010 overthrew governments considered corrupt.

In response to the protests, Kyrgyz President Sooronbai Jeenbekov convened a meeting of the National Security Committee. His administration also put out a statement distancing him from any foul play.

But corruption is endemic in Kyrgyzstan, as the report, entitled: “Plunder and patronage in the heart of Central Asia”, described.

“Evidence tells the story of how a vast underground cargo empire run by the Abdukadyrs, a secretive Uyghur clan, systematically funnelled massive bribes to Kyrgyzstan’s customs service,” it said. “It also implicates Raimbek Matraimov, a former top customs official widely seen as so powerful that he is essentially untouchable.”

Central to the report was the evidence of Aierken Saimaiti, an ethnic Uyghur. He was shot dead on Nov. 10 in Istanbul. Before his murder, Saimaiti had told journalists that he had laundered $700m out of Kyrgyzstan.

On Nov. 29, security officials in Bishkek arrested Erkin Sopokov, the former Kyrgyz envoy in Istanbul. His car was found near where Saimaiti had been shot dead.

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— This story was first published in issue 430 of the weekly Bulletin.

Lydian says Armenian government still blocking its plans

NOV. 5 (The Bulletin) — Lydian International, the Colorado-based mining company, has complained that ministers in Armenia are trying to block it from exploiting the Amular mine in the south of the country once again. It said that a minister has thrown out plans it had put forward on just how much water it planned to take out of the Darb river. Work was stopped at the mine in June 2018 because of various environmental complaints but in October officials greenlighted the project.

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— This story was first published in issue 428 of the weekly Bulletin.

Kazakhstan criticises budget for Tengiz upgrade

NOV. 6 (The Bulletin) — Kazakh energy minister Kanat Bozumbayev said that the budget for expanding the Tengiz oil field was too high, a declaration that sets Kazakhstan’s government at odds with Tengiz’s Western investors. The Tengiz project, which is led by Chevron, is Kazakhstan’s biggest producing oil field. Reports have appeared which have said that it will cost $45.2b to expand Tengiz, up from an initial cost estimate of $36.8b.

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— This story was first published in issue 428 of the weekly Bulletin.

New video dispels Berdy death rumours

Aug. 5 (The Bulletin) — In a move designed to dispel rumours swirling around the internet that Turkmen president Kurbanguly Berdymukhamedov had died, Turkmenistan’s state TV published a video of him driving a rally car around a flaming crater in the desert. Mr Berdymukhamedov has cultivated something of an action-man reputation, releasing videos of himself leading gym workouts and firing range practice with the army.
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— This story was first published in issue 418 of the weekly Bulletin

Tajikistan says no to borrowing more cash to build Rogun dam

Aug. 2 (The Bulletin) — The Tajik government said that it setting up a special agency to raise money for its headline Rogun Dam project. In an interview with the Asia-Plus website, finance minister Faiziddin Kahhorzoda said that Tajikistan was looking for grants to pay for the rest of the $3.9b project rather than raising more debt. In 2017 it sold Eurobonds worth $500m to fund the dam.
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— This story was first published in issue 418 of the weekly Bulletin

Georgian parliament returns to Tbilisi

FEB. 5 (The Conway Bulletin) — The Georgian Parliament opened in Tbilisi for the first time in six years after moving back from Georgia’s ex-capital Kutaisi where the government of former President Mikheil Saakashvili had moved it. The modern glass parliament building in Kutaisi has now been turned into an interior ministry department.
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>This story was first published in issue 399 of The Conway Bulletin on Feb. 8 2019
Copyright The Conway Bulletin 2019

Kazakh government buys bankrupt Tsesnabank

ALMATY/Feb. 7 (The Conway Bulletin) — — An obscure brokerage ultimately controlled by the Kazakh government bought a 99.5% stake in Tsesnabank, part of a deal that saved Kazakhstan’s second-biggest bank from bankruptcy.

The actual amount that Almaty-based First Heartland Securities paid for Tsesnabank has not been disclosed but it follows directly on from a 604b tenge ($1.6b) bailout agreed by the government this month. Tsesnabank had already been bailed out in September last year when the government’s bad debt fund bought $1.8b of debt linked to the agricultural sector.

First Heartland Securities is controlled by state-owned Nazarbayev University. This gives the government, and President Nursultan Nazarbayev and his family, total dominance over the Kazakh banking sector. His son-in-law, Timur Kulibayev, and daughter, Dinara Nazarbayeva, own Kazakhstan’s largest bank — Halyk Bank.

In a statement, First Heartland Securities said that under the terms of the deal it will inject 70b tenge ($185.8m) into Tsesnabank. Erke Nurkenov, First Heartland Securities’ chairman, said that Tsesnabank’s operations would not be impacted by the change in ownership.

“First Heartland Securities will continue to develop Tsesnabank and strengthen its position in the SME segment and work with individuals, primarily focusing on improving the quality and availability of service,” he said in a statement.

Pres. Nazarbayev’s ally Adilbek Zhaksybekov had owned Tsesnabank. He had been head of the Presidential Administration before resigning in September with a promise to sort out his ailing bank. He was replaced as Tsesnabank’s chairman by Shigeo Katsu, president of Nazarbayev University, and Bekzhan Pirmatov, formerly deputy CEO at First Heartland Bank, was appointed the Tsesnabank CEO.

Tsesnabank had been heavily exposed to the agriculture sector. Since a 2015 devaluation of the tenge, its debtors have struggled and the proportion of bad debt in its portfolio expanded rapidly.

Although analysts had warned of Tsesnabank’s collapse for months, it will still shake investor confidence.
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>This story was first published in issue 399 of The Conway Bulletin on Feb. 8 2019
Copyright The Conway Bulletin 2019

Kyrgyzstan extends Kumtor agreement with Centerra Gold

JAN. 29 (The Conway Bulletin) — Centerra Gold, the Toronto-listed company that owns the Kumtor mine in Kyrgyzstan, said that the Kyrgyz government had asked it to extend an agreement first hammered out in September 2017 by four months to the end of May 2019. The agreement essentially secures Centerra Gold’s ownership over the mine. Kumtor has been the focus of a long-running row between Centerra and Kyrgyzstan, which is a shareholder in Centerra. Last year, a rival AIM-listed British gold company also put forward a bid for Kumtor.
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>This story was first published in issue 398 of The Conway Bulletin on Jan. 31 2019
Copyright The Conway Bulletin 2019

Georgians think country is moving in wrong direction

JAN. 28 (The Conway Bulletin) — In a poll conducted in December 2018 for the US’ National Democratic Institute (NDI), 38% of Georgians said that the country was moving in the wrong direction, compared to 29% of Georgians who said it was moving in the right direction. These proportions have remained fairly consistent since June 2017.
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>This story was first published in issue 398 of The Conway Bulletin on Jan. 31 2019
Copyright The Conway Bulletin 2019

Kyrgyz parliament wants president to wear kalpak

JAN. 21 (The Conway Bulletin) — A parliamentary committee in Kyrgyzstan backed a proposal to force the country’s President to wear the traditional Kalpak hat on overseas trips. The Kalpak, a tall black and white felt hat, is a common sight in Kyrgyzstan where it is often worn by older men. It is considered a traditional sign of national pride.
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>This story was first published in issue 398 of The Conway Bulletin on Jan. 31 2019
Copyright The Conway Bulletin 2019