By Gulbanu ABENOVA
Almaty, Feb18 (THE GLOB)
�Our main achievement of the last year is the improvement of results of money collecting for the sold production which has increased 90%. Such figure was not reported anywhere else in Kazakstan. This is a unique result even throughout whole CIS� - said the president of the Almaty Power Consolidated Company on February 17.
According to Mark Zhosz, in spite of the unique collection and reliable electricity and heating supply of consumers in 1998 the Company lost 800 bln. Tenge. He said that about 70% of all the money collected last year, namely 13.3 bln. Tenge was spent on payment for fuel, taxes and salaries.
The management of APC believes that in order to cover its expenses tariffs need to be raised by 25-30% plus additional 10-15% in order to gain profits, which means the increase of tariffs for electricity by 40-45%.
The issue on the raise of tariffs will be up in the air up to March 10, when it is considered.
Currently, for settlement of some disputable issues regarding methods of determination of tariffs and taxes the government of the Republic of Kazakstan and APC have appointed an independent international expert.
According to APC�s management, an independent expert, Hagler Bai, has already presented a report in this sphere. The work of the expert was paid by the government of the Republic of Kazakstan and APC 50/50.
�APC has deliberately increased its losses� - said a representative of the Antimonopoly Committee on the same day after the press conference given by the APC�s management in the National Press Club. Kanat Zhangaskin, Chairman of the Committee of the Republic of Kazakstan on Control over Natural Monopolies and Protection of Competition in the City of Almaty believes that APC has recently increased the production of electricity and heating. Besides, according to him, the cost of Ekibazstuz coal used by the monopolist has been decreased twice. Coal transportation cost has also gone down.
�At present we have no serious reasons to raise tariffs�- stressed Mr. Zhangaskin. �They have deliberately increased losses on electricity supply from 14% to 33%, on heating from 16% to 28%� - said chairman.
Besides, according to him, APC has proprietorial rights not only for power production, but also for distribution networks of Almaty City, and will not let cheaper power of their competitors in the capital.
�We do not have really justified positions on which we could raise tariffs� - he says. At the same time he noticed that in principle the operation of APC is stable, houses and apartments are warm and essentially supplied with electricity.
Regarding the analysis of APC�s activities by the independent expert, Mr. Zhanaskin said: �Hagler Bai Company was recommended, APC paid. We are always holding by the opinion that he who pays the piper calls the tune.
Translated by INSEL Ltd. A.K.
Bakhytzhamal Bekturganova
President of the Association of Political and Social Scientists
Almaty
The second decade of February
Number of respondents - 676
Survey of people�s electoral preferences is one of basic components in election situation analysis.
The monitoring, carried out by the Association of Political and Social Scientists in the second decade of February in Almaty showed the following results:
1. Almaty citizens have quite �mosaic� portrait of a future parliament member. The low unit weight of identical answers demonstrates that voters are not prepared to the parliamentary elections. They are easier to fulfil their formal electoral functions that to determine the most deserving candidate.
2. Respondents expressed their readiness to vote for candidates nominated by POKOLENIYE group for pensioners� protection (the leading position in rating), FOR KAZAKSTAN�S FUTURE youth group (the second position), ATTAN anti-nuclear movement (the third position), the Communist party and OTAN united pro-president party block (the forth position).
3. Asked, which parties to be elected in the new parliament are most likely to continually protect interests of common voters, the respondents gave a variety of answers.
Even the leading parties and movements are unlikely to enjoy enough back of the electorate to account on the strong success in the parliamentary elections. Their leadership is unstable, as neither of political structures is able to collect necessary 25 % of potential votes.
Translation - INSEL
I continue to talk about Soviet traditions which have survived to the present day -specifically the practice of cheating customers in stores. One my politely call it a trade recession. I believe that you may know even more about it than I do. But I have my own editor�s column.
The simplest method of cheating - the third microphone please. - Yes, yes, I agree. These are elementary scales. I am sorry for the words� play, have a short measure: the scales show X kg., but the real weight is Y kg., where the formula Y<X is always constant (symbol �<� means �less�).
It is difficult to say what happens with the difference d = X - Y denominated either in Tenge or Dollars. The fifth mike please. Yes, yes, a part of what is stolen goes to �Bazarcom�1 . This is a sort of management at the market place. And what is next? The eighth mike please. Yes, yes, higher. How high? The thirteenth mike please. No, no. No indecent language in my newspaper!
But there are artistic methods of giving light weight. Here is an example from my practice. The eighteenth mike. Do you know this method? Wait a minute, I have not told anything yet. All the same? Disconnect the eighteenth mike.
Well, I bought 4 kg. of apples at the Green Bazaar. I took the bag in my hand. And� I did not feel 4 kg. in the bag. The eighteenth mike. Do I carry scales with me? No, I do not. What? The eighteenth mike went dead, we do not have this figure anymore.
I continue. We, the respectable salesman and I, are going to the control scales. Yes, there are scales of this sort at the market place. Do I believe them? I have no choice, these scales are the only ones. But the most interesting scene takes place near the scales. When I put my apples on the scales, a girl suddenly appears on the opposite side. She is at work. I mean to say she has apples in her hands. But she seems to feel uncomfortable, hurrying me to finish and get lost as quickly as possible, so that she can get back to what she was doing. At this time, the control scales show 4 kg. precisely. But taking the bag from the scales I feel that it still weighs less than 4 kg.
What, what are you shouting? All right, switch the eighteenth mike on. Oh, this is exactly what you meant? Great! You think that the girl and the salesman were in cahoots with each other? I think so too. But they looked very sympathetic. What? We have agreed not to use bad language. All right, but only outside the newspaper. I should say, these people at the market place - these conspirators - are rather artistic. They are smart. And I, in principle, can assume that they will not survive otherwise. They need to pay here, to grease a palm there, to pay off anywhere else. The twenty first. What? To democratically replace the Bazarcom? You think it will help? I am not sure, you know.
Oh, branch deserving of praise
But I have heard of a collective cahoot at a private company made with the purpose of cheating. That�s right, this is that very delicatessen store on the corner of Shevchenko and Kosmonavtov streets. I already wrote about Soviet scales there. Such cheap scales on the background of marble, foreign goods and local expensive delicates.
This time I am going to tell you about the branch of that LLC, Dastarkhan, located on Abai Av. On Monday, February 14, I bought some food there for the next day�s party. I paid 1,765 Tenge. Of course, I knew I was cheated. As I have already mentioned, the scales there are of a pointer-soviet-type. No electronic devices at all. I asked to weigh everything again. So, the real price turned out to be 1,446 Tenge. The difference is 319 Tenge or 22% of an additional �profit�.
There is one important thing. Please do not interrupt. The salesperson weighing food does not receive money. She puts the price tag on a plastic bag and then a customer pays at the nearby located cash-desk. This is the difference between the branch on Abai Av. and the parent store on Shevchenko street where a customer pays the salesperson who weighs food. This means that the salesperson in the branch - she has cheated me, which is a medical fact as Michael Raih used to say - needs to conspire with the cashier who receives money.
The seventh mike. What? Can I prove this fact? Well, I have witnesses. They left their business cards.
All right, the eighteenth mike. The cahoot of the salesperson with the cashier is an ABC of the Soviet Trade? I agree. But this is a private company.
Raimbek Batalov is the owner of the store? I have heard the same. You are asking whether it can be proved. Probably it is possible.
You want a summary? Something like change the scales and everything will be OK? Maybe, I am not sure. I do not know.
N. A.
1 �Bazarcom� - abbreviation for the Bazaar Committee (notice of translator).
As we previously reported, the OSCE Assessment Mission made a final conclusion on the presidential election in Kazakhstan, which actually coincides the one made on January 11,1999.
We would like to remind the readership that our last issue said about the timing of the election campaign and its legal base as well as about election commissions and availability of the media for the candidates.
(Continued from # 13(331))
III. Legal Framework
A. Amendments to the
Constitution
Nineteen amendments were made to the Constitution on 7 October 1998 which affected the election for the Presidency. These included changing the term of office for the President from five to seven years; deleting the age limit of 65 for the President; removing the requirement for a 50% turnout for a valid election; and establishing the line of succession in case of the early resignation, removal or death of a President.
An amendment to Article 94 allowed for extraordinary Presidential elections as follows:
By consent of the President of the Republic of Kazakstan the present term of the powers of the President of the Republic may be reduced by resolution of the Parliament of the Republic, adopted at the joint session of its Chambers by the majority of votes of the total number of deputies of each Chamber. In such case the Majilis of the Parliament within one month shall order elections of the President of the Republic of Kazakstan.
Under this Article of the Constitution, the joint session of the Chambers of Parliament reduced the term of the President�s office, and the Majilis ordered elections for the President of the Republic of Kazakstan for 10 January 1999.
B. Amendments to the Decree
on Elections
On 8 May 1998, an amendment to the Decree on Elections barred any person from being registered as a candidate in any level of elections who:
1) has been called to disciplinary account for committing a corruption offense during a year before registration;
2) has been imposed an administrative sanction in a court procedure for intentional offense during a year before registration;
3) has conviction which has not been cancelled or annulled by the time of registration in order, stipulated by law [Article 4 (4)].
This amendment was purportedly to keep corrupt persons from running as candidates. It became a controversial amendment in the lead-up to the election for President. The requirements for registration to be a candidate were also amended to include a medical certificate of the state of the candidate�s mental health.
Amendments were made to the Decree on Elections on 6 November 1998 to bring the articles into concurrence with the constitutional amendments, such as excluding references to the 50% turnout requirement for the validity of the election. At the same time, an amendment to Article 42 (2) changed the marking of the ballot paper from a negative vote (i.e. a line drawn through the candidates not wanted) to a positive vote (i.e. a mark made for the one candidate chosen). The ballot paper also had a choice added to vote against all candidates.
C. Appointment of
Election Commissions
The Decree on Elections specifies how the election commissions at each level are appointed. The members of the Central Election Commission are elected by the Majilis of the Parliament upon the nomination of the President of the Republic [Art. 11]. The territorial, district and precinct commissions are formed by decisions of the corresponding akims (heads of local administration) [Art. 13].
Akims at the territorial level are appointed to office by the President of the Republic on the recommendation of the Prime Minister. Akims at other levels are appointed or elected to office as determined by the President of the Republic [Art. 87 (4) of the Constitution]. Currently these akims are appointed and the President of the Republic has the right to release them from office. As a result, all appointments of election commissions come under the aegis of the President. The President also appoints judges and procurators, who decide the legality of elections.
The election commissions at various levels do not appear to enjoy the trust of the voters. They are not perceived as independent, representative or neutral. In many cases, the members of the precinct commissions are members of the faculty at higher learning institutes or senior staff at work places. Their positions of power can lead to intimidation of students and workers. The regional commissions are often made up of employees of the akimat (local administration) and the office of the commission is in the akimat building. Often the political affiliation of the members of the commission is well known, which does not give the appearance of impartiality to these bodies. An impartial environment is needed to build the trust of the public.
The appointment process for the commissions needs to be reviewed to give them a more independent structure. The voters are quite cynical about the commissions and their ability to ensure a fair election. Unless each commission�s integrity and neutrality is assured, the voters will not believe that an electoral change is possible. The membership of the election commissions also needs to be more representative of the community at large because there are such large numbers of appointments involved (see Appendix A).
The role of the commissions needs to be better understood by voters. A public information program would assist but only when the appointments are more independent and representative.
IV. Pre-Election Activities
A. Registration of Candidates
The Decree on Elections specifies the requirements for the registration of Presidential candidates. The candidate must collect signatures of two per cent of eligible voters in at least two-thirds of the administrative units of the country (the oblasts and cities of Almaty and Astana) [Art. 56]. For this election, the required number of signatures was 170,000. A candidate for the Presidency also has to pay a fee (set at equal to one thousand minimum monthly wages, approximately US$ 30,000) and present a medical certificate as to her/his mental health [Art. 59].
A candidate also has to pass a Kazak language test. The parameters of the test are not clearly set by law, leading to public mistrust of the testing procedure. For example, it was speculated that one of the registered candidates only passed the language test due to kind grading.
In all, eight candidates began the registration procedures for the 10 January 1999 Presidential election after the election was called. Two of those withdrew voluntarily during the pre-election period: Mr. Kharishal Asanov, a former dissident, and Mr. Zhakysbai Bazilbaev. The latter withdrew in favour of candidate Nazarbaev.
The 8 May 1998 amendments to the Decree on Elections banned the registration of any individuals who received an administrative sanction for an �intentional offence� in a court procedure during the year prior to registration. These amendments were used to disqualify two potential candidates from entering the Presidential race. In the case of Mr. Amantai-Kazhi Asylbek, the amendments were used retroactively. Mr. Asylbek was sentenced to three days of detention in early 1998 for organising an unregistered public prayer. This administrative sanction was used to deny Mr. Asylbek his registration as a Presidential candidate.
The former Prime Minister of Kazakstan, Mr. Akezhan Kazhegeldin, was denied registration due to a court sanction he received for attending a 5 October 1998 meeting of an unregistered NGO called For Honest Elections. Only selected participants in this meeting were arrested and charged. This case highlighted the issues of freedom of association and the lack of judicial remedies available to individual citizens of Kazakstan on constitutional matters.
On 30 November 1998, the deadline for registration of candidates, the CEC formally registered four candidates: Mr. Nursultan Nazarbaev (58 years), the incumbent President; Mr. Engels Gabassov (61), a member of the Senate; Mr. Serikbolsyn Abdildin (61), the chairman of the Communist Party of Kazakstan; and Mr. Gani Kasymov (48), a chairman of Kazakstan�s customs committee. These four were able to present the required number of signatures in support of their candidacy, to pay a registration fee of US$ 30,000 and to pass a test in the Kazak language.
B. Freedom of Association
The Constitution of Kazakstan guarantees freedom of association. However, during the election period, the authorities restricted this freedom in some cases. The Law on Public Associations allows for only one founding meeting of a public association before the association is registered with the Ministry of Justice [Art. 10]. Other meetings are not allowed and carry an administrative sanction.
Some human rights and other NGOs in Kazakstan have faced problems with registration in the past and the authorities appear to have the ability to delay registration. No explanation is required if the registration is denied. Some members of these groups have reported harassment by the police for their involvement.
(To be continued)
Gulbanu ABENOVA
ALMATY, February 18,
(The Globe according to the EBRD materials)
The main targets of the reforms:
Pressure on the budget connected with the decling prices of oil and increased cost of borrowings made the high-grade enterprises� privatization even more urgent.
Striving for effective inner accumulations and the capital markets development, large-scaled pension reform measures have encountered grave difficulties in practice.
The resolution of the legal status of the Caspian sea created an opportunity for laying new pipelines that might impact the further direct investment influx from abroad.
Liberalization
Consumer prices have been freed since 1995, except controlled tariffs for public utilities (gas, electricity and water supply), rent, transportation and telephone communication. Existing tariffs were gradually adjusted towards the reimbursement of expenses. Lower tariffs for the population have been covered by the establishment of higher ones for commercial structures and state enterprises.
Kazakhstan�s liberal trade regime has allowed for considerable progress in negotiations concerning membership in the World Trade Organization. At the same time participation in the Customs Union with Belarus, Kyrgyzstan, Russia and Tajikistan can slow down the further cut of trade tariffs, since there should be a single tariff structure within the union. The group decided to co-ordinate its members in entering the WTO.
Privatization
Small businesses had been officially privatized in 1997. More that 13 000 ones were sold for privatization vouchers at money auctions. The process began to be implemented using vouchers. Now large businesses are being easily privatized through money auctions. By the middle of 1998, 1600 corporate bodies were set out for tenders. Another 400 enterprises will be sold the same way. Piece-sale of strategic projects draws significant foreign participation, especially in the energy and the public utilities sector. In 1997 strategic foreign investors acquired two oil companies, copper-smelting plant, manganese plant and also 40% Kaztelecom shares. On account of unfavorable world -wide economic conditions trading plans for 7 of 13 first-rate companies previously excluded from the privatization program were postponed.
According to official data more than 70% of all enterprises assets were privatized. Just 30% of control share holding belong to individuals. The state, however, still keeps large share blocks of the privatized businesses. Besides this 330 quite solid enterprises, to the lot of which falls 35% of GDP (according to evaluation), remain a complete state property.
Enterprises� reforming
Kazakhstan has tried a whole range of methods to sustain restructuring of unprofitable productions. Kazakhstan rejected originally used contracts for management designed in favor of state reorganization under the leadership of the Committee for management of the state property and Rehabilitation Bank (RB). The latter was basically engaged in financial restructuring at insolvent enterprises.
In 1997, 46 enterprises were transferred to the RB. By the middle of 1998, 26 ones had been either liquidated or displayed for sale - the rest remain in RP portfolio. In the beginning of 1998 amendments to the Law on bankruptcy let it be applied in agriculture. Growing overdue indebtedness is evidence of how soft budget limitations are. Disadvantageous businesses still have debts to suppliers, employees and the public budget in spite governmental efforts to eliminated off-sets, when tax liabilities are accounted against indebtedness from the budget part.
The influx of direct investments into Kazakstan is one of the largest in the CIS. If we are calculate them per capita they would exceed $300 for the period of 1989-1998, giving way only to Azerbaijani indices. About 80% investments were distributed to the unrecoverable resources sector, in particular into oil/gas industry. In 1998, the establishment of Consultative Council on Foreign Investments was announced to be established.
(To be continued)
Translation - �Insel� C.V.