KYRGYZ PRESIDENT CRITICIZES MINISTERS OVER PRICE

C O N F I D E N T I A L BISHKEK 000773 SIPDIS DEPT FOR SCA/CEN E.O. 12958: DECL: 07/30/2018 TAGS: PGOV PREL PINR KG SUBJECT: KYRGYZ PRESIDENT CRITICIZES MINISTERS OVER PRICE RISES, LACK OF PREPARATIONS FOR COMING WINTER REF: A. BISHKEK 680 ¶B. BISHKEK 593 Classified By: Classified by: Charge d'Affaires, a.i. Lee Litzenberger for Reasons 1.4 (b) and (d) ¶1. (SBU) During a July 24 government meeting, President Bakiyev berated cabinet ministers and government officials for poor performance in dealing with price increases and the lack of preparations for the coming winter. Bakiyev complained that too much time was spent "studying problems" rather than acting on them. He reprimanded Prime Minister Chudinov for "poor management" of the cabinet and encouraged him to provide a list of any officials who should be sacked. Numerous media outlets were invited to cover the meeting, and the session was broadcast by state television later in the day. ¶2. (SBU) Bakiyev criticized several ministers and heads of state agencies directly. Bakiyev attacked Minister of Economic Development and Trade Akilbek Japarov for inadequate analyses and forecasts about rising food costs and overall inflation. The president scolded Jumasarlik Nurjanov, the head of the State Agency for Antimonopoly Policy and Competition Development, for only recently regulating the profits of Gazprom Neft Asia, which has a monopoly on fuel supply to the country. Bakiyev was critical of the Minister of Industry, Energy, and Fuel Resources, Saparbek Balkibekov, who, he claimed, has insufficiently prepared the nation for the upcoming winter and inevitable energy shortages. ¶3. (SBU) Bakiyev noted the critically low level of the Toktogul Reservoir, and he warned that if the water level dropped much further, the hydroelectric power station would shut down. He said that this would cause a chain reaction of additional, smaller power stations down river also to cease operating. Bakiyev suggested that those "well-off people" inQrge houses could afford to switch from electricity to coal-burning heating systems. Bakiyev ordered the energy minister to cut two of three phases of electricity to privately owned two- and three-storey houses around Bishkek, as well as to public saunas and bathhouses. This, Bakiyev claimed, would allow for "main sections of the population" to be supplied with electricity this winter. ¶4. (C) Comment: The government meeting received wide coverage in the local press, both pro-government and opposition. While some reported the event as an attempt by the President to show that he is in charge and taking action, others saw this as an attempt to deflect blame for the current poor state of preparations on food and energy security (See Refs A and B). By publicly criticizing individual ministers and officials, Bakiyev seemed to be setting Q stage for a cabinet shake-up. While there have been no personnel changes as of a week after the meeting, we anticipate that some heads may roll if economic conditions worsen. Shortly after the President's speech, Bishkek city officials began cutting phases at private houses, including at two Embassy-leased residences, which are now on back-up generators. LITZENBERGER