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At whose expense has Issyk-Kul luxuriated?

Under the new agreement on Kumtor, Centerra is ready to transfer $ 50 million to the Nature Development Fund to finance environmental protection measures. The annual environmental payment was also increased from $ 310,000 to $ 3 million. As a result, the Issyk-Kul Development Fund will receive much more money. But will it be spent on the intended purpose?

Goldmine of the Development Fund

Experts unanimously repeat: there is no confidence in the authorities. To remove suspicions, officials should report what the allocated money was spent on. «It is profitable to sue neither for us nor for Kumtor. To avoid any talks, the government must submit a plan for money spending. Centerra has made its step, now the ball is on the government’s field. It should tell how it will use finances,» expert Zhumakadyr Akeneev said.

As the office of the Plenipotentiary Representative of the Government in the region informed 24.kg news agency, for 19 years, Kumtor has transferred almost 3 billion soms to the Development Fund of Issyk-Kul Region.

The fund was established in 1997, at the same time, annual deductions of 2 percent of profits began. In 2009, they were reduced to 1 percent.

Most of all funds were transferred to the Development Fund in 2011 — 463 million soms. In 2000, 2007 and 2008, the funds were not transferred.

Money from the fund should be used for the construction of schools, kindergartens, medical and obstetric stations, sports, cultural facilities, solution of social and economic problems of the region.

Over the past seven years, the fund spent most of the money on construction, repairing of roads and water supply (1 billion soms), education (932 million) — 31 schools have been built. And the least of all money was allocated for culture (103 million soms) and profitable projects (60.1 million).

How an official can do without a car?

The main goal of the Directorate for Fund Management is extrabudgetary financing of economic development programs of Issyk-Kul region for development of priority sectors of the economy, rational and efficient use of funds, support and protection of investors and investments, implementation of state policy in the field of urban development, ensuring maximum efficiency of public procurement.

As for the public procurement, virtually all purchases carried out at the expense of the Development Fund of Issyk-Kul Region are made by direct contract with the supplier.

The management needed two cars — Mercedes-Benz S350 produced in 2005 and Lexus LS460 no older than 2007 to «strengthen the material and technical base of the residence of the Plenipotentiary Representative of the Government in Issyk-Kul region.» 1.5 million soms were allocated for the purchase.

Officials necessarily need a car with leather interior, tinted, heating and memory of all seats, steering, air conditioning, otherwise they will not reach the destination.

At the same time, the Accounts Chamber revealed a shortage of service Moskvitch car with a book value of 69,000 soms assigned to the driver of the directorate.

Feasts is our everything

In 2016, Kumtor has transferred 450 million soms to Issyk-Kul Development Fund. Head of the region Uzarbek Zhylkybaev admitted that money from the fund was spent on the feasts.

Auditors of the Accounting Chamber noted that the money can not be used for expenses related to organizational activities. In violation of this norm, the management has spent 980,000 soms only in 2015.

In addition, 208,000 soms were written off for payment of hotel rooms for the guests of the international economic forum of Issyk-Kul region without supporting documents.

What the fund’s money were spent on

After analyzing the purchases of the Directorate of the Issyk-Kul Development Fund, one can conclude: the officials lived large. They bought new computers, furniture, cars, installed sliding gates in a guest house in Karakol town, refueled the patrol cars...

The Auditors of the Accounting Chamber believe that the provisions on the Development Fund of Issyk-Kul Region do not clearly outline the directions for using money, which has led to the distribution of funds without linking them to the goals of social and economic development programs of the territories, their use for current needs.

Heads of district state administrations, mayors of towns often included in the applications new objects without taking into account the presence of unfinished objects in the region, which has led to the growth of long term construction facilities, the dispersion of funds into small objects.

The audit detected financial irregularities of 3.9 million soms.

So, equipment for 391,900 soms was not delivered in the kindergarten in Sary-Kamysh village, Issyk-Kul district, while the money was transferred in December 2014. A contractor who carried out repairs of drinking water supply system in Tyup district did not pay taxes.

Local officials are so impudent that they even prefer to dig irrigation ditches at the expense of the fund’s money. At the same time, they do not hesitate to overestimate the amount of work done. Thus, the Issyk-Kul Fund employees have appropriated 2 million soms.

The heating system was repaired at the secondary school No. 4 in Karakol town in 2012.

According to the Ministry of Internal Affairs, the contract was concluded with a private company for 9 million soms. The independent expertise found that the amount of materials used does not correspond to the number specified in the document.

This year, the head of the fund was replaced. Rustambek Sadyraliev has extensive experience in the financial and economic sphere. Let’s see how his skills will influence the spending.