The Institute of Business Ombudsman published a statement on the situation in the business and investment environment in Kyrgyzstan.
Based on complaints and other appeals from business entities, information in the media, the Institute of Business Ombudsman expresses concern about the ongoing pressure on entrepreneurs and investors by state bodies. In December 2020, the business advocate already spoke out on this issue.
«Despite the decrees adopted by the President Sadyr Japarov in early 2021 on protecting property and supporting entrepreneurs and investors, establishing the inadmissibility of unreasonable interference by law enforcement, fiscal and regulatory authorities in the activities of business entities, these negative facts still take place. Pressure, including unlawful pressure, on business continues,» the Business Ombudsman said.
This may adversely affect the attractiveness of the business environment and the investment climate in the country, especially in the current crisis period.
The issue of monitoring the implementation of presidential decrees is more relevant than ever.
In a previous statement made in 2020, one of the main factors in the current situation was the desire of state bodies to replenish the state budget. Earlier, the Business Ombudsman noted that efforts to attract additional funds to the budget from business entities carry real risks of leading them to bankruptcy or forced shutdown. Actions that challenge the rule of law and due process will hinder economic recovery and be of increasing concern to businesses, current and potential investors.
«Among the problems in the interaction between business and the state found by the Business Ombudsman’s Institute in the course of its work we should note the adoption of regulatory legal acts that adversely affect entrepreneurs, the misinterpretation and application of the legislation of Kyrgyzstan by state bodies. Separately, it is worth noting situations where the legislation contains gaps, conflicts or ambiguities. Despite the fact that in such cases the relevant regulatory legal acts prescribe the application of legislation in favor of entrepreneurs, everything is different in practice,» the statement says.
In the course of its work, the Institute of Business Ombudsman encountered the fact that it is very difficult, and in some cases practically impossible, to obtain an official interpretation or clarification of the legislation from the authorized state bodies. In cases where such an interpretation and/or clarification was received, the information provided was incorrect or did not contribute to the resolution of the problem.
The Business Ombudsman’s Institute called on government agencies to take steps to eliminate cases of adoption of changes in legislation with procedural violations, biased or unreasonable interpretation or application of laws.
«We believe it is important to follow the agenda set by the country’s leadership and pay special attention to the quality of the implementation of economic reforms,» the organization stressed.
In order to support and develop business, attract investments, it is necessary to interact more effectively with entrepreneurs and refrain from changes in legislation that may adversely affect business.
Officials are advised to actively involve stakeholders in the discussion of legislative initiatives, take measures to improve the mechanism for providing clarifications and interpretations, and resolve disputes in favor of entrepreneurs, as it is established by the country’s legislation.
