Corruption in Central Asia
The Organized Crime and Corruption Reporting Project (OCCRP) has taken up the cudgels against organized corruption and corrupt practices. The Central Asian Republic of Kyrgyzstan figures prominently in the OCCRP investigations.
Kyrgyzstan was foremost in launching anti graft campaigns and ensuring transparency in procurement and award of contracts where states resources are involved and initially was the only Central Asian country to bring information filed by officials in their asset declaration forms into the public eye. The tax department remains restricted to examining the summary of the declaration . Gradually the availability of information of public servants and public representatives ,accessible by the general public, has been compressed and is a question mark on the accountability drive and seen as an impediment to establish transparency in public transactions.Public officials and state employees were required by decree to submit their asset declarations disclosing their incomes and assets as well as those of their nuclear family and this binding regulation to declare incomes and assets had been in vogue since the year 2005. Glaring discrepancy exist that only a summary of the declaration is made available to the public on an electronic portal . To deflect forensic analysis there is no distinction in various sources of income so much so that the unit size of a declared property is at the sweet will of the declarant official or public representative.
Courtesy Mining.Com
Courtesy RadioFreeEurope RadioLiberty
Gold Mine Scandal and Canadian Mining Company
The Kumtor gold mine is located almost 4000 meters above sea level and its permafrost or glaciers had to be removed to extract the ore. Despite the avowed objectives of deregulation and a liberal and open market regime for investors the gold mine is highly regulated to serve the self seeking designs of the elite.The Kyrgvz authorities nationalised the gold mine and was sued in a US court by a Canadian company which sought daily penalties of $ 1 million , however the case was thrown out of court.As a counter move the London Bullion Market Association , which is the global trading hub of gold , suspended Kyrgystan’s membership effectively denying Kyrgystan to sell gold bars from it Kumtor gold mine . For the first time after its licensing in 1992 and executing of 14 agreements the Kumtor gold mine is now owned by the Kyrgvz state. Negotiations between the Kyrgvz company and Centerra Gold Inc. resulted in an out of court settlement .The gold mines history is replete with environmental damage and toxic spills contaminating water reservoirs. In another case the Prosecutor General’s Office of Kyrgyzstan initiated criminal proceedings against the executives of the power distribution company Severelectro on account of illegally and in connivance with consumers of writing off receivables .
Courtesy RadioFreeEurope
Vague Declaration Impedes Anti Graft Campaign
The anti graft campaign is politically tinged at times which damages its credibility and reeks of a witch hunt and political persecution of opponents. A former Kyrgyz Prosecutor-General faces corruption charge of collaborating in the early release of a legislator convicted of serious financial crimes . Instances of ludicrous declarations abound wherein it is difficult to ascertain and trace and track the origin of liquid assets or expenditures of members of parliament. One instance is of a public representative declaring a colossal amount of $ 390,000 as expenditure incurred against an annual declared income of $ 20,000. In another case which became highlighted a member of the Kyrgyz parliament conveniently omitted to declare 45 companies in which his spouse was a shareholder. A public representative member of parliament conveniently ” forgot ” to mention his mansion with sprawling lawns and a luxurious swimming pool and characterised the mansion as an apartment.
Courtesy ADB OECD
Livestock Shield
Innovative ways to conceal illegitimately acquired wealth in Kyrgyzstan involve manipulating assets such as livestock.Oblivious to public opinion some members of parliament declared millions of US dollars worth of livestock. This declaration was perhaps motivated by the ambiguity involved in determining the cost of livestock and its market value which fluctuates and the more perplexing aspect is that many of these public office holders have no propriety rights over country side manors or any swathes of agricultural estate.For the time being curbing and eliminating corruption seems an uphill struggle and warrants determined and sustainable action by all stakeholders involved.
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