KAZAKHSTAN

KAZAKHSTAN-IN-BRIEF

JOURNALIST ARMIAL TASYMBEKOV RELEASED FROM PSYCHIATRIC CLINIC. Astana, journalist Armial Tasymbekov was released from Astana City�s Central Psychiatric Clinic yesterday. Doctor Dmitriy Degtiyarev told RFE/RL correspondents by phone that Armial Tasymbekov had received necessary treatment in the clinic and was �absolute sober and healthy.� Doctor Degtiyarev declined to give any detailed information about Mr. Tasymbekov�s diagnosis and process of his treatment, saying that it was confidential data, and according to the Kazakh laws he had no right to give that sort of information to anyone, except police or other official boards. According to Dr. Degtiyarev, Armial Tasymbekov �had a temporary mental disorder.� Mr. Tasymbekov himself told RFE/RL correspondent in the hospital on Monday that he had been surveyed by some unknown people before his being put to the clinic, adding that a Colonel of the Kazakh National Security Committee (formerly KGB) had tried to interrogate him at his work place (Lev Gumilev�s Eurasian University) asking some questions connected to appearances of anti-Nazarbayev and pro-Kazhegeldin graffiti on walls and fences of Astana earlier this year.

TWO US CITIZENS BEATEN AND ATTEMPTED TO BE ROBBED IN ALMATY. In the night between May 4 and May 5, a criminal group tried to rob an apartment of two U.S. ladies, representatives of some American Charity foundations working in Kazakhstan. Neighbors of the two American females, living in the same 9 leveled apartments block, heard a loud noise and women�s screaming in the night and called police. Policemen surrounded the building very fast and the criminals were arrested. Investigations are underway. The two ladies are hospitalized with serious injures. RFE/RL correspondents quote Almaty Police Department as saying that the criminals attempted to rob the apartment.

WORKERS MOVEMENT CALLS TO MARK THE VICTORY DAY. Leader of the Almaty City Workers Movement - Otegen Qabaziyev called all the veterans of WW2, as well as the members of the movement and those of the Communist Party to mark the Victory Day, May 9. Mr. Qabaziyev said at the press conference held yesterday that his movement had sent a request letter to the Almaty Mayor�s Office Asking for permission to hold the demonstration on May 9. He also told; journalists that special red flags and banners had been prepared for the participants of the demonstration-to-be.

LEADERS OF OTAN PARTY MET WITH VETERANS OF WW2. OTAN party leaders and activists held a special meeting with the veterans of the World War 2 yesterday. Special gifts, namely watches were reportedly distributed among the veterans, and a special concert was staged for them in Almaty City. RFE/RL correspondents report that the war veterans were asked to join the ranks of OTAN party. OTAN is a party led by pro-Nazarbayev politicians.

NUMBER OF HUNGER STRIKERS IN SHYMKENT INCREASING. Number of hunger strikers at Shymkent Phosphorus Producing Plant became 17 today. The strikers are demanding their salaries for the last three years to be paid off.

KAZAKH JOURNALISTS CRITICIZE DRAFT LAW ON MASS MEDIA. Journalists of the former capital, representatives of both independent and state periodicals, as well as international companies and organizations, marked the International Media Day at the National Press Club in Almaty on May 03. The Draft Law on Mass Media in Kazakhstan, published in the local newspapers last week was harshly criticized by the journalists yesterday. It was stated at the gathering that in case if the Draft Law was not modified drastically, the situation around speech and press freedom in Kazakhstan would be difficult. It turned out that nobody knew anything about the draft�s authors. It was also mentioned at the meeting that the Draft Law had never been distributed among the Kazakh Parliament members for discussion.

FORESTS FIRE REPORTED IN KAZAKHSTAN'S NORTH. RFE/RL correspondents quote local news agencies as reporting that unusual hot weather in the Northern part of Kazakhstan, namely North Kazakhstan, Qaraghandy and Aqmola Oblasts, caused forests fires. Hundreds of hectares of unique green massive are being terminated reportedly. Four children were killed by think smoke caused by the forest fire in Qaraghandy Oblast.

KYRGYZ AND UZBEK TRAIN TRANSITS THROUGH THE KAZAKH TERRITORY RESUME. Chiefs of Kazakh and Kyrgyz Railroad Communications Departments and Uzbek UZBEKISTON TEMIR YOLLARY Company held talks in Almaty yesterday, where the issue of the Kyrgyz and Uzbek Trains Transits through the Kazakh territory was discussed. RFE/RL correspondents report that it was decided that the Uzbek and Kyrgyz trains would be allowed to resume their transit transportation to Russia through Kazakhstan. All the Kyrgyz and Uzbek debts to the Kazakh Railroad Communications Department were agreed to be paid off by May 31 this year.

KAZAKH PRESIDENT DEFINES THE REPATRIATES QUOTA FOR THIS YEAR. Kazakh President Nursultan Nazarbayev signed Decree on Definition of Quota for the Kazakh Repatriates for 1999. According to RFE/RL correspondents report the Decree, signed yesterday by President Nazarbayev yesterday, will allow 500 families of ethnic Kazakhs to move to Kazakhstan from other countries for the permanent residence this year. Since Kazakhstan's having got independence in 1991, thousands of the Kazakh families immigrated to Kazakhstan from Afghanistan, China, Mongolia, Iran, Turkey, Russia and Uzbekistan.

(RFE/RL)


No emission is expected, � the Minister of Finance

Yekaterina KOSTINA

Alexandra SAMOILENKO

ALMATY, May 6

(THE GLOBE)

Rumours about a possible emission of money were refuted by the Minister of Finance in Astana on May 5.

Uraz Dzhandosov declared that the government would not do it. In his opinion, there is no necessity for the emission. The Minister called statements that the monetarization level may be increased by means of emission to be delusional. According to the experts, the monetarization level should be 15%, while by the end of 1998 it amounted to 8.5%.

At the same time, the Chairman of the national statistical agency had stated earlier that this measure was to be taken.

According to Zhaksibek Kulekeev, the free-floating tenge�s exchange rate is not sufficient to completely improve the situation in the economy (THE GLOBE dated 30.04.99). To increase the monetary mass may become a necessary measure. The monetary mass was reduced due to active interventions of the National Bank to support tenge�s rate at the end of the last year and in the beginning of this one.

As a result, the monetary mass in Kazakhstan fell by 30 billion tenge in the last year. The active operations of the commercial banks should promote its increase. However, the banks spend their free money to buy hard currency. Emission will provoke the rise of tenge�s devaluation and a reduction of purchasing capacity. According to Andrei Tsalyuk, the leading analyst of �KASE�, the Kazakhstan economy is not able to utilise emission money. To rise it requires another kind of management and a number of rigid administrative measures. If the industry is developed, money emission (within reasonable limits) is profitable for the economy. Due to such an emission, people receive money, producers get a stable domestic sales market and solvent demand for their products (THE GLOBE dated 04.05.99).

There was no default of securities, and the monetary mass available today is sufficient to cover the state liabilities. Subsequently, money emission is inadvisable in Kazakhstan. According to Mr. Dzhandosov, what is required the continuation of economic reforms. The first step should be the issuance of decrees to increase tax collection.


Kazakhturkmunai puts into operation new facilities

Michail SERGEEV

ALMATY, May 5

(THE GLOBE)

�The constructed facilities will guarantee the operation of the existing and new deposits prospected in this region,� the representative of KTM said to THE GLOBE in Aktau.

�Kazakhturkmunai� (KTM) has completed the construction of an oil preparation unit in Saztyube, the central point of Yelemes mining facilities and Oporny oil collection station, as well as the Saztyube-Yelemes-Oporny oil pipeline in the Mangistau region.

On the occasion of the inauguration of these facilities, the group of Ministers, senators and heads of many departments and organizations arrived to Mangistau region. From Aktau the party left by two helicopters for the official inauguration ceremony.

In the evening of the same day, according to the representative, the group arrived to the capital of Mangistau, the town of Aktau, where the solemn party devoted to the commission the facility was held.

The cost of reconstruction of these deposits and construction of the oil pipeline was US$ 25 million. The projecting documentation was prepared by the institute �Caspymunaigas�, which is situated in Atyrau.


Anticipating KITEL�99

Sergei MATYUSHENKO

ALMATY, May 4 (THE GLOBE)

KITEL�99 will be held from June 1 to 4 in the Atakent exhibition complex. The sixth annual conference will be the largest international exhibition devoted to the latest communication technologies, computer, banking, office technologies and security systems to be organized in Kazakhstan this year.

The event is organized by �Iteca� company, the exclusive partner of the British ITE Group in Central Asia.

Despite unstable economic situation �the number of sponsors this year has increased by more than 43% in comparison with 1998 and the number of participants has increased by 31% -totaling 180 companies-participators,� according to the director of the KITEL project.

The official Russian Web-server of KITEL�99 (www.kitel.iteca.kz) will be opened for the first time. All the main events of the exhibition will be presented on-line.

Companies dealing in the computer business and informational technologies will be exhibited in pavilion No. 8 (KITEL�99). Telecommunication, telebroadcasting, radio broadcasting, and Internet companies will be shown in pavilion No.9 (KITELcomm�99).

Pavilion No.6 will be devoted to education. According to the organizers, this year�s event is the first time in CIS in which an educational pavilion has been technically supported by the leading companies.

�This action is timed directly to the International Day of Children�s security and invites students and pupils from all Kazakhstan to visit its computer classes,� the director of the project emphasized.

According to the director, free seminars devoted to specific themes and discussion are planned to be conducted at the conference. An Internet-cafe and multimedia booth will both operate on the exhibition territory.

Companies dealing with the production and design of security systems (KIPS�99) will be presented in the pavilion No. 7. This exhibition was accredited and supported by the Ministry of Internal Affairs of Kazakhstan for the first time. This year the same pavilion will host the world�s leaders in the production and design of banking and office technologies (BankOfficeTech�99).

�Iteca� company will organize a seminar on �The Year 2000� problem, which according to Yelena Peredelskaya, will allow the participators and visitors a unique opportunity to discuss potential solutions. It is noteworthy that �Kazakhtelecom� company, one of the sponsors of the exhibition will ensure that all the computers at the exhibition will be connected to Internet free of charge.

As was announced by the organizers of the exhibition, this year�s KITEL�99 will offer a lot of pleasant surprises both for the participators and for its visitors. Every day a free lottery with special prizes, such as cellular telephones, office techniques, and software products will be conducted. The conditions of the lottery will be announced later.

The project director added that �Iteca� company is also sponsoring the first international table tennis competition among the participants of the exhibition KITEL�99. It is hoped that this event should give exhibition participants an opportunity to know each other in an informal way and impart a healthy spirit of competition. Most importantly, as the event will be simultaneously telecast around the conference, it will demonstrate new technological possibilities used to illuminate the competition. Technical support for this event will be rendered by �Actis systems� company.

Then the organizers thanked the Ministry of transport, communications and tourism of Kazakhstan, the Mail and Telecommunication Department of RK and the JSC �Kazakhtelecom� for active support of the coming big event.


Let�s set a tax trap or Russian experience to Kazakhstan tax organizations

Sergei MATYUSHENKO

ALMATY, May 6

(THE GLOBE)

The problem of tax collection is the main problem in many CIS countries. In President Nursultan Nazarbaev�s last appeal to Parliamentarians this problem along with corruption was determined as the priority. It is difficult to overestimate the importance of the replenishment of the budget with tax collections. Recently the Minister of State Revenues Zeinulla Kakimzhanov presented the new program on the improvement of the activity of the fiscal organizations, which is believed to replenish the state treasury.

It should be mentioned that as it is proven by experience, a special role in the effective work is played by informational and technical technologies. In connection with this, the positive innovations of Russian tax services seem to be interesting.

According to information of some Russian mass media, a global information system to shadow the taxpayers has been introduced in Russia. From this time onwards, the Russian tax organizations will be able to get information about infringes from any place in the country.

Some days ago the installation of the first part of the project ISYTPOL (information system of tax police) was completed. A tax information network covering federal, regional and district levels has been created. Now information about a taxpayer that has infringed the tax legislation at least once will be available for the tax organizations all over the country.

Even FBI technologies, tax policemen said proudly, could be hardly compared with the new shadowing system.

This system was created in the framework of the intergovernmental French-Russian credit agreement concluded in 1994. The French side allotted 250 million francs (about US$ 50 million) to design this program. To complete the second phase of the project, the authorities will require another 336 million francs (about US$ 60 million).

In his interview to Russian mass media, the deputy director of the Tax Police Federal Service Yury Chichelov said, that the incurred expenses had been already covered 1.5 times and the first part of the credit had been reimbursed. For the two years after introduction of the project, more than 60 million roubles were returned to the new system. It should be noted that Kazakhstan�s fiscal organizations also often introduce up-to-date technologies and know-how. For example, Customs and other important facilities are equipped with modern technology.

It seems that Russian successes are worthy of the most intent attention. Moreover, Kazakhstan has already similar conditions required for systematization. According to the recognized experts, serious designing companies able to create similar automatic shadowing systems are already working in Kazakhstan.

Against the background of the work being conducted to strengthen tax discipline in Kazakhstan, the possibility of the installation of such systems continues to rise.

We remind you, that in the next two weeks the program of improving the activity of the fiscal organizations will be expanded.


POWER

In May the government will pay Kazakhstan�s pensioners

On May 5, Kazakhstan�s Deputy Prime Ministerand Minister of Finance, Uraz Dzhandosov held a press conference at the National press-club by the TV-bridge Astana-Almaty. Mr. Dzhandosov did not respond to journalists� requests to explain why he had been reprimanded by the President. In the Minister�s opinion, the time of the introduction of the free tenge�s rate was predetermined by a number of factors. One of them is slowness of the Parliament. Mr. Dzhandosov touched upon the situation with debts towards salary and in the social sphere. As of January 1999, the debt of the local budgets towards salary was 1 billion 398 tenge. The Minister of Finance assured that by the end of May the government would pay off the debts to the Kazakhstan pensioners. Though Dzhandosov did not clarify from what sources they are supposed to be paid. At the same time the Minister mentioned the second credit line of the World Bank in the amount of about US$ 100 million. Dzhandosov expressed the expectations of the government to receive loans from the World and Asian Banks. It is known that as of today, the state�s external debt totals almost US$ 3.5 billion, while the gold and hard currency reserves of the republic are more than US$ 1.5 billion.

As far as money emission is concerned, Dzhandosov declared that the government would not do it. The government is going to bring the economy out of the crisis with the help of the tax laws, which finally are to increase tax revenues to the budget. But for the first three months of 1999 the amount of the collected taxes was 18% less than in the same period of the last year. However, the head of the Finance Ministry made an optimistic prognosis for the future: �In June there will be no tax arrears.� By the end of the year the government expects growth in the manufacturing sector, despite the fact that the manufacturing volumes has decreased by 3.5% in the first three months of the year. The Finance Ministry escaped from any comments on the scandal regarding the helicopter accident, from which the ex-vice-Minister of Finance Orazaly Yerzhanov hunted in the beginning of the year. Neither did Mr. Dzhandosov comment upon the circumstances of the new appointment of Mr. Yerzhanov.

This press conference was timed for the opening of the National press-club in Astana.

The speaker met the ambassadors of Iran and France

Kazakhstan is interested in the transportation of oil through the Iranian route, which is the shortest and the most effective one. In their own turn, the Iranian businessmen are ready to buy grain and other goods in Kazakhstan. The mutual relations will be enlivened by N. Nazarbaev�s visit to Iran in the next summer. According to the representative of the Parliament press-service, the trip was recently announced in Almaty by the chairman of Mazhilis Marat Ospanov at the meeting with the Iranian Ambassador to Kazakhstan Mr. Hasan Kashkavi. The possibility of Kazakhstan�s participation in the meeting of the heads of the Parliaments was discussed. The meeting is supposed to be held in Teheran, where the delegations from countries-members of the Organization Islamic Conference will arrive. M. Ospanov thanked the Ambassador for the invitation to the meeting and gave assurances that Kazakhstan�s Parliamentarians would take an active part in it.

According to the same source, the Chairman of the Mazhilis discussed with the French Ambassador Mr. Serge Smesov the issues concerning the interrelations of authorities and opposition. The Ambassador wondered about the democratic changes and supplementation made by the deputies to the election legislation. According to M. Ospanov, the country has made a significant step towards further democratisation of the elections. Now while calculating the votes, proxies of the candidates, journalists and foreign observers may present at the election centres.

Visa regime is possible at the Kazakh-Uzbek border

According to Rahat-TV, the akim of the Southern Kazakhstan region (SKR) Kalyk Abdullaev announced, �situation at the border of the region and Uzbekistan is at present abnormal.� On April 27 the akim of SKR met the Prime-minister of Uzbekistan Utkir Sultanov, having notified him about the expected session of the court against the terrorists concerned in a number of February blows in Tashkent. After the court completes this case, the situation at the frontier �will be somehow normalised.� He announced, that probably, the visa regime would be introduced, having emphasised, that is the right of sovereign Uzbekistan. Uzbekistan hopes the situation will change after the visit of the Prime Minister N. Balgimbaev appointed for the end of May.

CRIMINAL

�Kazakhstan temir zholy� conducts a revision

The big losses and embezzlements in the railway transport were revealed by the service of financial-economic control of the Republican State Enterprise (RSE) �Kazakhstan temir zholy�, the source from RSE announced. Only for the first three months of this year in the result of 380 revisions it revealed the loss, damage and ungrounded money expenses in the amount of about 320 million tenge. Out of that amount 68 million tenge was stolen by the materially responsible persons and functionaries. In the result 610 heads of all the ranks were made answerable for administrative infringements. 16 cases regarding losses, embezzlements and misappropriations of the functionaries for the total amount of 57 million tenge, were submitted to the transport departments of internal affairs, tax police and Committee of National Security (CNS).

To execute the further struggle against corruption in the railway transport the administration of �Kazakhstan temir zholy� along with the officers of CNS, Ministry of Internal Affairs and tax service held the meeting where they took a decision to co-operate.

Subsidiary of Centrcredit bank was robbed

According to the representative of the subsidiary of Centrcredit bank situated in the micro-district Aksai-1, recently four strangers rushed into the calculation-cash department of the bank. The robbers threatening with a knife and pistol, seized the bag with money in the amount of about 1 million 600 thousand tenge, having beaten the guard before. The event happen a few minutes prior to the arrival of the collector car. There was more money in the cash, but it was in the different safes, and perhaps, the criminals did not know that. Then they escaped in the car waiting for them near the entrance. To find the robbers the operative-investigation group from the experienced officers of the city and Auezov Department of Internal Affairs was organised

ECONOMY

The Ministry of State Revenues: electron monitoring of the enterprises� activity

By the middle of June, about one hundred enterprises-taxpayers will possible be attracted to the monitoring by the Ministry of State Revenues (MSR) of Kazakhstan. The MSR will start the introduction of the electron monitoring of the financial-economic activity of the enterprises from May, the source from Astana informed. The Minister MSR Zeinolla Kakimzhanov speaking on April 28 before the financial directors of the biggest taxpayers grounded the necessity to submit the weekly reports and the importance of the electron control for the enterprises� operations by the MSR. That is impelled, in particular, by absolutely unsatisfactory indices of the tax collections for the first quarter of 1999. These indices are almost four times less than the ones of the last year. The electron control will allow to follow such moment of the financial-economic activity of the enterprises, as appropriateness of the buying and selling prices, debit-credit liability; export-import; utilisation of loans and investments, etc. According to the preliminary data, a number of the enterprises-big taxpayers controlled by the system of the electron monitoring is supposed to increase.

Aksu ferroalloys plant and �Kazchrome� raise social sphere

127 million tenge were allotted by �Kazakhstan Mineral Resources� in 1998 to maintain and develop the social-cultural objects in Aksu ferroalloys plant, Express K announced. It is known, that TWG company, the previous owner of the enterprise has led the social basis to collapse. Now the health centre, hotel, hostel will work again. The harmful factors influencing people�s health will be paid attention to as well. Reduction of the content of dust and harmful substances in the atmosphere is achieved by usage of the new technique. Prophylactic treatment and timely diagnosing are the priority factors. In 1998 the JSC �TNK �Kazchrome� allotted 46 885 000 tenge to the medical centre, and for the first quarter of 1999 it allotted 11934000 tenge. Medical help to the workers is rendered by the eight doctors of different specialisation. Hence, in 1998 the total morbidity level reduced by 20.4%. Profitability for the enterprise is obvious: according to the data of the economic service of the enterprise, a worker�s one day on sick leave costs for the plant 507 tenge, annually this amount comes to tens of millions tenge.

New personnel reductions in oil companies

The merge of the two biggest oil companies in Atyrau region, JSC �Embamunaigas� and �Tengizmunaigas�, into a single enterprise �Kazakhoil-Emba� is planned to be completed by the beginning of autumn, Rahat TV announced. 3922 persons worked in �Embamunaigas�, which exploited twenty three oil deposits. It was planned to execute prospecting drilling in Kondybai and Uas structures to widen the mineral-raw material basis. In the result of the merge, the reduction of manpower is being expected. A significant part of the oil workers has been notified about future dismissals. Unprofitable plants in the oil departments �Zhaikneft�, �Dossorneft�, �Makatneft� will be liquidated. It is planned to mine annually 2236 tons of oil at 2004 wells, and to realise the products for the amount of 7621.3 million tenge. �Kazakhoil-Emba� will consist of thirteen subsidiaries. The main office of the joint-stock company is located in the building of the ex-JSC �Embamunaigas�. Beside that, the House of Culture �Neftyannik� which was recently in the balance of the JSC �Embamunaigas�, will be transferred to the local executive authorities. The �Neftyannik� hostel will be independent, the brick shop of �Zhaikneft� will be sold at the auction.

Akims settle the financial problems of the regions

Thanks to a guarantee of the akim of Almaty region Zamanbek Nurkadilov, it was decided to allot the credit in the amount of 250 million tenge to rural producers. According to the representative of the press-service of the government of Kazakhstan, in connection with the critical situation in agriculture, the akim of Almaty region Z. Nurkadilov supported by the government of the Republic of Kazakhstan, was a guarantor before the second-level banks. Today the rural producers do not have any liquid pawn required to receive a loan. Money will be spent to sowing campaign, as well as to development of the processing industry.

In the akimat of the Southern Kazakhstan region the volumes of usage of communicational services and number of personal cars have been reconsidered. Owing to reduction of the number of cars it is planned to decrease the corresponding expenses by 3.5 million tenge. A number of the users of the mini telephone station reduced by one third, will save three million tenge more. The administration of the region has completely given up the expensive cellular communication. Moreover, two police posts were cancelled, i.e. 2.9 million tenge more of the budget money was saved.


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