Scandal with Liglass Trading. US secondary market and marijuana pushers

The story with the Czech company Liglass Trading is getting more and more details from day to day. And they can not be called positive. Kyrgyz officials prefer not to comment on media reports. Their answers to journalists’ questions are limited to short sentences with suggestions to wait until the end of September.

Followers of DiCaprio

Civil activist Edil Baisalov conducted his own investigation, trying to understand why Liglass Trading is so stubbornly clinging to a scandalous contract. His investigation led to unusual conclusions: the Czech company earns on news about a large contract in our country.

In June 2017, a few weeks before the official signing of the contract with Kyrgyzstan, Czech businessmen Michael Smelik, Jiří Wojciechowski and Juraj Pavel registered in their name the offshore company China Intelligence Information Systems Inc. in Nevada (USA). The company’s shares are traded on the over-the-counter markets. Their peculiarity is that in the case of such trade, strict reporting and auditing requirements are not imposed on the company.

Some Wayne Hayes helps in the operations with Liglass Trading shares. The search on the Internet gives information that in 1993 he was sentenced to 20 years for fraud, scams with shares and financial pyramid scheme.

«Our officials entrusted the construction to rascals-bankrupts from the Czech Republic. And those, in their turn, hired fraudsters-swindlers to stir up excitement around the concluded contract and earn on this financial scheme. This is pure fraud. This is an episode from the movie The Wolf of Wall Street, where they sell penny stocks to unsuspecting small investors. But the honest name and investment reputation of Kyrgyzstan suffers from this scam,» Edil Baisalov commented on the situation to 24.kg news agency.

Marijuana pushers

There is one more interesting detail. The financial intermediary of Liglass Trading is Kaloca Company. The company posted an announcement about the search for financing for Liglass Trading on its Facebook page on August 3.

It should be noted that Kaloca started looking for investors as far back as in July, when it first reported that it was looking for companies from Canada and Europe to implement hydropower projects in the Czech Republic. Later, it specified that any offshore broker or agent in Canada, Asia or Europe is needed to help their client in the Czech Republic. At the same time, it was emphasized that the Czech company is looking for accredited non-US investors. But at the same time, Liglass Trading is ready to report on all financial results of its work.

The funniest thing is that the past of the financial advisor itself is not entirely ideal. The company is active on Twitter and Facebook. So, analysis of Kaloca’s Twitter profile gives amazing results. It turns out that only a year ago Kaloca was trading ... marijuana.

It should be noted that ex-prime minister of Kyrgyzstan Temir Sariev expressed harsh criticism against the scandalous project. He demanded that law enforcement bodies to investigate and punish those responsible. But the authorities still offer to wait until September 18.

When is the deadline?

Not everything is clear with the date too. When the parties only signed the agreement, it was publicly announced that Liglass Trading would transfer $ 37 million within 30 days to buy 50 percent of the shares in Upper Naryn CJSC. This is exactly the amount that Kyrgyzstan should return to the Russian company RusHydro, which is already preparing to file a suit to international arbitration against us.

However, recently, the Ministry of Justice posted on its website a government decree on the contract with Liglass Trading. There is also an investment agreement in it. This document states that 25 percent of the total contract amount is a free-of-charge contribution of Liglass Trading to the construction project of the Upper Naryn cascade of HPPs. At the same time, the first $ 37 millions of this amount are to be transferred within 30 banking days after the signing of the agreement. And the Czech company is to transfer the rest of the sum after the approval of the transaction on transfer of 50 percent of the shares of Upper Naryn HPP CJSC to Liglass Trading.

However, the authorities held their ground. The term of payment for RusHydro expires on September 18, 2017. Deputy Prime Minister Duishenbek Zilaliev told journalists about it. Then a new date appeared. According to the State Committee for Industry, Energy and Subsoil Use, Liglass Trading can contribute $ 37 million until September 19 inclusive.

It will be impossible to drag on longer. It will become clear on September 20, 2017 whether the Czech company is really such a reliable and responsible investor or Kyrgyzstan has got into another not funny story. We should not forget that we will have to return $ 37 million to RusHydro in any case. But for this we have to urgently search for a new investor for the project, as Kyrgyzstan does not have such a large amount of money.