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Criminal case initiated against Kyrgyztelekom management over Internet tariffs

A criminal case was initiated against Kyrgyztelekom JSC management over illegal signing of contracts for the purchase of Internet access channel. Information department of the Prosecutor General's Office reported.

According to it, the case was filed under Article 221 (abuse of power by officials of commercial and other organizations) of the Criminal Code of the Kyrgyz Republic.

It has been found out that the Chairman of the Board of Kyrgyztelecom JSC Emil Eshenaliev concluded obviously unprofitable contracts on the basis of unilateral demands by foreign companies to increase the cost of Internet access services.

On July 29, there were signed contracts with K.T.K. JSC and on August 1- with G.K.SG- for the provision of Internet access services at the speed of 7 Gbit / s with a monthly subscription fee to each company in the amount of $ 210,000 ($30 per 1 Mbit / s). Agreements were concluded for a year.

Whereas, under the terms of the previous contract, G.K.S.G. company  provided access to the Internet services at speed of 13 Gbit / s with a monthly payment of $ 180 million ($ 13.84 per Mbit / s). The parties could not unilaterally change the prices and tariffs for services up to December 31, 2016. 

According to the State Anti-Monopoly Regulation Agency, in September and October other companies have provided Internet access services in the price range of $ 15-30 per Mbit / s in Kyrgyzstan.

These contracts were concluded in violation of the law On public procurement, without competition and price monitoring.

As a result of the contracts, G.K.S.G. and K.T.K. companies were unduly paid more than $ 275,000.

The criminal case was sent to the State Service for Combating Economic Crimes for investigation.