TURKMENISTAN: PRESIDENT APPOINTS NEW DEPUTY

UNCLAS SECTION 01 OF 03 ASHGABAT 000933 SENSITIVE SIPDIS STATE FOR SCA/CEN, EEB PLEASE PASS TO USTDA DAN STEIN ENERGY FOR EKIMOFF/THOMPSON COMMERCE FOR HUEPER TREASURY FOR BAKER/LANIER E.O. 12958: N/A TAGS: PGOV ECON EPET EAGR TX SUBJECT: TURKMENISTAN: PRESIDENT APPOINTS NEW DEPUTY PREMIER, REPRIMANDS OTHER LEADERS DURING JULY 21 CABINET MEETING ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: During a July 21 extended cabinet meeting, held to review the government's work over the last six months, President Berdimuhamedov said the country's economic indicators are good enough to increase wages and pensions by 10% effective January 1, 2009. However, he singled out a number of cabinet members for reprimands, including Deputy Premier for Oil and Gas Tagiyev (for lagging hydrocarbon production),Ministry of Agriculture officials, and Chairman of the State Committee for Sports and Tourism (for slow development of hotels in the Avaza tourist zone). Following reports by the Chairman of the Supreme Auditing Commission, the president also criticized Deputy Premier for Economy and Finance Geldimuradov (for banks' slow processing of loan applications) and the Minister of Railway Transport. In an apparent effort to turn around the troubled agricultural sector, Berdimuhamedov promoted the Minister of Water Management, Myratgeldi Akmammedov, to fill a new deputy premier position for agriculture and water management. More than anything, this session demonstrates the growing power of the Supreme Auditing Chamber, which seems to be taking its GAO-like mandate seriously. END SUMMARY. ¶3. (U) The president called the July 21 extended cabinet meeting to review the government's progress over the last six months. Berdimuhamedov said he was basically pleased with the financial and economic indicators, which will allow the government to increase wages and pensions by 10% on January 1, 2009. However, he singled out several deputy premiers and ministers for reprimands: -- Pointing out that hydrocarbon production is continuing to lag despite considerable investment, the president criticized Deputy Premier for Oil and Gas Tachberdi Tagiyev and ordered him to organize a meeting to evaluate nine months' work. This meeting, the president added, will be the forum for making a number of important decisions on hydrocarbon issues. -- Deputy Premier for Energy, Industry, Construction and Motor Transport Nazarguly Shagulyev was ordered to take immediate steps to eliminate grave shortcomings in the transport and construction sectors. The president also criticized Minister of Construction Shamuhammet Durdylyev for not enforcing a policy of equal wages for foreign and local workers. -- Without mentioning the poor wheat harvest, the president criticized the work of the Ministry of Agriculture in distributing seeds, fertilizer, irrigation water, machinery and spare parts. -- After the Chairman of the Supreme Auditing Chamber, Tuvakmammed Japarov, pointed out the unsatisfactory work of the banks in disbursing mortgage loans, the president reprimanded Deputy Premier for Economy and Finance Hojamurat Geldimuradov for the banks' unreasonably slow preparation of mortgage loan proposals. Only 395 of 2020 loan applications have been acted on, resulting in slower-than-hoped-for housing construction across the country. -- Railway Transportation Minister Deryaguly Muhammetgulyev received a strong reprimand after Japarov also reported that his Chamber's investigations had turned up evidence that the Ministry has sought to increase the proportion of (high-revenue) international traffic using Turkmenistan's railways at the expense of (cheap) domestic freight. The ASHGABAT 00000933 002 OF 003 Ministry was also not moving forward with needed equipment replacements and track renovations. The president ordered that the audit information be transferred to the Prosecutor's Office for further investigation. -- Pointing to the slow construction of hotels in the Avaza free tourism zone on Turkmenistan's Caspian coast, the president also criticized the Chairman of the State Committee for Sports and Tourism, Bashim Kerimov, and ordered that the Supreme Auditing Chamber carry out an investigation of construction in Avaza. ¶4. (U) Stressing the need for effective reform in the agricultural sector, the president underscored the need for highly trained agricultural specialists, and said that the new agricultural university being constructed in Dashoguz should help to fulfill this need. Demonstrating a new focus on the agricultural sector, the president also appointed the Minister of Water Management, Myratgeldi Akmammedov, to the position of Deputy Premier for Agriculture and Water Management -- a new position -- and Deputy Minister of Water Management Annageldy Yazmuradov as minister. ¶5. (SBU) COMMENT: More than anything, this Cabinet of Ministers' meeting demonstrates the growing power of the GAO-like Supreme Auditing Chamber, a body established just a year ago. Embassy increasingly has noted in meetings with high-level government officials a certain wariness about being put in positions where they can be held responsible for possible fiscal wrongdoing. Japarov, in a separate meeting with U.S. Department of Treasury officials on July 21, proudly acknowledged his Chamber's power -- and the way it is helping to change the way Turkmenistan's officials do business. END COMMENT. BIOGRAPHIC INFORMATION -- MYRATGELDI AKMAMMEDOV ¶6. (SBU) Akmammedov was born in 1951 in Rahat Village, located in Mary Province's Turkmengala District. After receiving a degree in construction engineering from Turkmen Polytechnic Institute in 1976, he worked for a year as an inspector in the Ashgabat Inspectorate of the Ministry of Melioration and Water Management. In 1977, he was assigned to work at the Ministry of Melioration and Water Management's Saryniyaz PMK-20 site, where over the next seven years he rose from the position of master to deputy head. In 1985, he was assigned (for five years) as Chief Engineer of Howuz-Han PMK-36 and Head of PMK-18 of the main Karakum (Canal) Construction Administration. After serving from 1990-1994 as deputy hakim of Mary Province's Oguzhan District, he became head of the construction management department under the Ministry of Motor Transportation. From 2003-2005, he served as head of the Department of Industry, Construction and Mechanization of the Ministry of Water Management and head of the Ministry's Western Water Management Association. In 2005, he was promoted to the position of Deputy Minister of Water Management and, on February 20, 2007, Minister of Water Management. An Embassy FSN who is very familiar with Akmammedov has described him as substantially more technically proficient and less ideological than Minister of Agriculture Orazgeldiyev -- probably the reason Akmammedov, rather than Orazgeldiyev, was raised to the deputy premier position. BIOGRAPHIC INFORMATION -- ANNAGELDI YAZMYRADOV ¶7. (SBU) Yazmyradov was born in 1965 in Zahmet Village, ASHGABAT 00000933 003 OF 003 Babadayhan District, Ahal Province. He received his degree in irrigation engineering from Turkmen Agricultural University in 1988. After graduation, Yazmyradov spent 17 years in a variety of positions, including: engineer in hydrotechnology; head of the Water Operations Department of Tejen City's Department of Management of Irrigation Systems; Head of Tejen City's Mobile Mechanical Unit of the "TurkmenPlodoOvoshStroy" (Construction Unit for Fruit and Vegetable Storage) Trust; Head of the Mobile Mechanical Unit #23 of the Ahal Province Village Construction Production Enterprise in Tejen City; and Head of Ahal Province's Water management Production Enterprise of the Minister of Water Management. He became Head of the Ministry of Water Management's "AbadanGurlushykOnumleri" Enterprise for construction, repair and production work in 2005, a position he held for two years. In 2007, he was appointed Deputy Minister of Water Management. CURRAN