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Lack of data on final beneficiaries hinders mining industry in Kyrgyzstan

«If we want to defeat corruption and bring order to the mining industry, it is necessary to adopt a law that forces all companies to open information about final beneficiaries — shareholders,» an expert Sheradil Baktygulov said at a round table discussion in 24.kg news agency.

He noted that a similar rule was in force in America and Canada.

«According to the legislation of Kyrgyzstan, such information is closed. It turns out that each peak of Kumtor issue coincides with the growth in the number of minority shareholders of Centerra, which is developing the mine. We need to look at how shares are received, at what price, and other points,» Sheradil Baktygulov said.

He added that profits, income derived from securities, are not taxed in the republic.

«Adoption of such a law will stop politicization of the issue, old tactics of redistribution of property, when a problem is first created and then resolved for getting a share. This is raiding. There is economic blackmailing, political one. Corruption in this system will decrease, and revenues to the budget will increase if taxes are paid on income from shares, plus, ensuring transparency of the activities of mining enterprises,» the expert said.

Ata Meken parliamentary faction developed a draft law on the exclusion from the Water Code of the norm, allowing industrial use of Davydov and Lysyi glaciers located in Kumtor working zone.