Court hearings on the case of the ex-akim (ex-mayor) of the Atyrau region are continuing. At the trial, the questioning of the accused took place, where the former first deputy akim B. Daukenov refused to provide testimony providing during the investigation, citing the fact that he had given them under outside pressure.

No akim or his deputies had any right to interfere in the activities of law enforcement agencies, especially as they were not directly subordinated to them. The city administration is not tasked with the coordination and management of law enforcement officers. Based on vertical governance, they obey orders from Astana. After their release from their positions and the placement of law enforcement officers of the Atyrau region to other positions, none of them were charged. Today, all of them are working in other positions, which means that the secret witness is brazenly lying.

This points to the fact that no one pressured the court trial of  S.Nakpaev which is made obvious by the court’s decision. What kind of pressure can possibly be implied since Nakpaev was not convicted for his work in the Governor’s office (although there were many violations and illegal acts), but under the article of “arbitrariness” for 4 years.

(The court’s decision Nakpaev)

Similarly, as in the case of Nazmi Aliyev – the international fraudster, as repeatedly mentioned in the mass media. Because of his fraud, 15 local companies suffered undue financial losses, to which he owed about 4 billion tenge. These subcontractors, hired by Aliyev, amassed huge debts and were forced to go to court and the police. Aliyev grew huge debts, And as a result -Aliev Nazmi was convicted of fraud for 8 years. But for unknown reasons, he has not served his full sentence.

(The court’s decision Aliev)

As can be seen from all the above, the akimat of the region had nothing to do with Aliyev’s trial and subsequent sentencing.

The former mayor of the Makat district, Nurlan Dzhantokova, was released from his post in 2007. A criminal case was launched against him under an article of the Criminal Code titled “Abuse of power or official authority”. Subsequently, the charges were changed to “criminal negligence”, and then the case was stopped.

For these reasons, the testimony of the secret witness can be put under serious doubt.

Briefly about privatization.

In reference to CSE “Atyrau-akparat” , this building was built for 470 million tenge and in all that time no one calculated the wear and amortization of the property. It was sold for 206 million tenge, a very realistic price at the moment. I doubt that today that anyone will pay more for it.

The typographic equipment had an estimated value of 77 million tenge but after ten years had become outdated and worn out (but for some reason no one bother to take this into account). It was sold for 25 million tenge. This is a realistic price for this equipment.

Gas networks: If we take a look at the balance, we can see that a profit of 1 million. US dollars is unrealistic. For the maintenance of CHP “Obltransgaz”, an annual state budget of 400-500 million tenge was allocated. The networks were sold to LLP Zhaik Gas Distribution for 650 million tenge, with an  obligation to revive the old network, not to raise rates for the next two years and to invest heavily in the reconstruction of these gas networks. These obligations are outlined in the investment agreement. But no one takes this into account.

Look at what is happening today: criminal cases are being opened on this property, but after 3 months the same property is transferred to the company “Kaz Trans Gas Aimak”, another private company, which immediately raises the gas prices. Where is the logic? How can this whole thing not be fabricated and politicized?

Part of the cultural center “Atyrau” (aka – “appendix”), namely, a restaurant and part of its production, with the market price of 164 million tenge was sold to LLP “KaspiyStroyEkstra” for 17 million tenge. This is this is the competitive price of the property. The Akimat (regional government) should not be engaged in the restaurant business. This building was renovated in 2003 by the same fraudster N.Aliyev, but was completely worn out and required major repairs. Why is this fact not taken into account?

Water pipelines “Guriev-Makat.” There is not much to say here. This is an old water network, built 40 years ago from metal pipes, now completely rusted and badly worn out. The pipelines barely managed to deliver drinking water to the Makat district through leaky and holed pipes, and the loss of water was 60%. Therefore, a decision was made to build a new pipeline system. If this decision had not been made, then within 2 years, all of Makat would have remained without water. The maximum exploitation of the old water main was 15 years, and it operated for 40 years. There is absolutely no market price for this old pipeline, of which there is testimony from experts of the Governor’s office. Where did 373 million tenge come from? The company which bought it, had to utilize all the scrap metal using it’s own resources, and to rework the ground. The charges that the financial police is trying to tie to the accused are ridiculous.

50 buses were privatized legally. Annual depreciation of the buses is set at 15%, that is, four years is 60%. 30 million tenge – that is the residual value of the property. In comparison, in the cities of Almaty, Astana and other regional centers support the public transportation network by buying hundreds of units, and transfer them for rent, without any additional charges, which is consistent with the budget legislation.

In spring 2012 the prosecutor’s office had conducted a check for which the city’s administration gave concrete answers to account for all properties which were privatized, – said the defendant Daukenov.

Meetings were held concerning these properties in the offices of the supervising deputies, where all questions concerning the privatization of these properties were discussed and all committee members unanimously signed a document of approval. It’s interesting that today all the signatories of the akimat, who worked for many years in the public service, say they do not know what it is they signed, and many had not even read the document. How can this be believed? If the financial police claim the privatization was illegal, why not call in all the committee members, each of whom is responsible for their work. If they do not, but selectively choose those who are responsible then that of course, leads to some interesting thoughts!!!

Based on the above, the version of the investigation that the properties were sold at undervalued prices, is untrue. All the rules of privatization were observed and the matter was conducted in the frameworks of the law. Unfortunately, Mr. Daukenov forgot many facts legal aspects/arguments or was greatly intimidated, or as he declared in court, he was threatened. Of course, in this type of situation certain things can be forgotten.

The former senior official did not recognize any of these charges. “I did not even read the documents concerning this criminal case. I’m not interested, “- he said.

Daukenov explained that all the facilities were unprofitable, and had a negative impact on the budget and ” if not today, then tomorrow, they still would have had to be passed into a  competitive environment.” At the same time the defendant also reminded those present in court, that the Head of State repeatedly talked about the need for these kind of steps.

And now the question of the transfer of the daughters” and “grandsons” of national companies, including” Samruk-Kazyna”.  As far as I know, to date, 80 companies which had “clung on” to this holding company, were transferred into a competitive environment – gave an example Daukenov and continued, – I agree that there could be violations, but, look, what happened? Instead of “Real Batis SIM” there appeared “Ace Trans Holding”, for which, again, at the expense of the state buses were purchased. Gas networks are now in private hands – in the hands of JSC “KazTransGas Aimak”, whose first action was to raise gas prices.

The former official has repeatedly stressed the fact that the decision on privatization was made by Bergey Ryskaliyev, and he personally agreed with it. Daukenov (in the past – an employee of the prosecutor’s office) also noted that all the decisions made by the akimat were immediately checked for legality by the prosecutor’s office – such is the rule set down by the General Prosecutor’s Office of Kazakhstan. And should this rule be nulled or changed, an employee of the prosecutor’s office would know. Consequently, where did the latter look?

Agreements and acts of privatization were headed by Daukenov acting as the first deputy of the mayor, and occasionally as active akim.

“Everything was run by the akim. He told me – “sign it” – and I signed. He could either be on vacation or on a business trip, “- he stated.

“Why did you not ask the mayor to sign these important documents?” – Asked the prosecutor.

Daukenov was surprised: “Dear Mr. Prosecutor, the decision has been made and cannot be negotiated!”

Mr. Daukenov forgot the most important thing: that after the President issued a decree on privatization, the government obliged all the regional akimat to enter such properties into a competitive environment, except those strategically important. Therefore, the decisions were not made by B.Ryskaliev, but that the akimat was executing the acts of government.

- Resolution of the Government of the Republic of Kazakhstan dated May 6, 1996

№ 562 On Approval on the valuation of properties for privatization

- Resolution of the Government of the Republic of Kazakhstan dated June 26, 2000 – №942 Approval of rules of sale of properties for privatization

- Resolution of the Government of the Republic of Kazakhstan dated August 9, 2011

№ 920 Approval of rules of the sale of properties for privatization

Today, all properties that were privatized have been returned into state ownership and the companies that had bought have not yet received any financial compensation. What kind of damages to the state could there possibly be?

In response to a lawyer’s question, Nurlan Zholbolova – whether he admits his participation in an organized crime group – the defendant declared emotionally: “All this is politically motivated! Cancelling the acts of privatization and returning the properties to the state – could have all been done within the frameworks of the law. ”

B.Daukenov, a former employee of the prosecutor’s office, gave specific answers to specific questions.

It is clear that this is politics and the court system is a tool used to victimize it’s opponents.

To be continued ….