Violations revealed at Issyk-Kul Region Development Fund

The Prosecutor General’s Office of Kyrgyzstan sent a submission to the Cabinet of Ministers on violation of the rule of law in the work of the Issyk-Kul Region Development Fund. 24.kg news agency received a copy of the official appeal of the main supervisory authority.

The document notes that the Prosecutor General’s Office checked the intended use of the fund’s money. It turned out that it was created in 2011 to finance (co-finance) priority initiatives of the local community aimed at creating favorable conditions for the social and economic development of the region and formation of budget-forming business projects.

At the same time, money was paid from the resources of the Issyk-Kul Region Development Fund to compensate for damage from the loss of pasture lands used by Kumtor Gold Company CJSC.

The Prosecutor General’s Office believes that this norm contradicts the purpose of creation of the fund and the norms of Kyrgyz legislation. Indeed, according to the law, the subsoil user must pay compensation for the use of pastures. In addition, the funds of the Issyk-Kul Region Development Fund were originally intended for creation of new business projects.

Therefore, the Prosecutor General’s Office appealed to the Cabinet of Ministers with a proposal to eliminate violations by August 10, 2021 and exclude the possibility of payment of compensation for Kumtor Gold Company from the fund’s charter.