KAZAKHSTAN: ALMATY NOTES, JANUARY 17-30

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TAGS: PGOV PHUM ECON ELAB KDEM KZ
SUBJECT: KAZAKHSTAN: ALMATY NOTES, JANUARY 17-30

REF: (A) ASTANA 0191
(B) ASTANA 0058
(C) 08 ASTANA 2383

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1. The "Almaty Notes" series from U.S. Office Almaty focuses on
developments in civil society, the media, and the opposition in
Kazakhstan's "southern capital."

OPPOSITION PARTIES: NO OPTION BUT TO BOYCOTT


2. National Social Democratic Party (NSDP) head Zharmakhan
Tuyakbay, Azat Party General Secretary Tulegen Zhukeyev, Communist
Party leader Serikbolsyn Abdildin, and Auyl (Village) Party leader
Gani Kaliyev told the "Zhas Alash" newspaper that if President
Nazarbayev signs the draft law on elections, "we will have no option
but to boycott the next elections to the Mazhilis (lower house of
Parliament)." Leaders of seven political parties previously stated
in December that they would boycott the elections if their proposals
were not included in the new election law.


3. On January 21, several political parties addressed an appeal to
Nazarbayev asking him to veto not only the election law, but also
new laws on political parties and the mass media, which were, in
their opinion "drafted by the government and hastily approved by
Parliament." The appeal stressed that "the cosmetic amendments do
not correspond to Kazakhstan's commitments and OSCE standards and
damage the reputation of the country." This appeal was signed by
Auyl, Alga, both of Kazakhstan's communist parties, and NSDP.
Similar appeals have been issued by Adilet and Ak Zhol.

OPPOSITION PARTIES SUPPORT YESERGEPOV


4. Two opposition parties, Azat and NSDP, issued separate
statements demanding that the criminal prosecution of "Alma-Ata
Info" newspaper editor-in-chief Ramazan Yesergepov be stopped and
Yesergepov released. (NOTE: As reported in reftels, Yesergepov has
been charged with publishing classified documents. END NOTE.) The
Azat party maintained that the case undermined the reputation of
Kazakhstan. The NSDP stressed that freedom of speech was "limited
in order to please a specific agency," meaning the Committee for
National Security (KNB). Several political party leaders, including
Serikbolyn Abdildin of the Communist Party, Vladimir Kosaryev of the
People's Communist Party, Lyudmila Zhulanova of the Ak Zhol Party,
and Gani Kaliev of the Auyl (Village) Party jointly called on the
authorities to stop prosecuting Yesergepov. They stressed that
officials who bear responsibility for the leakage of the information
should be brought to account, not Yesergepov.

"DOLSHIKI" GO ON A HUNGER STRIKE


5. On January 20, twelve activists from the "Leave the Houses to
the People" movement began a hunger strike to protest what they see
as the government's lack of action in dealing with bad mortgages.
The protesters, who were "dolshiki" (i.e., individuals who invested
in apartments that have not been completed or have not been built at
all),claimed the government is dragging its feet on adopting a
mechanism for buying up bad mortgages. Forty-eight people announced
their willingness to join the hunger strike if anyone has to suspend
his participation due to health problems. The chairman of the local
branch of the ruling Nur Otan party announced that a special
commission has been set up to solve problems of the "deceived
dolshiki." Almaty Deputy Akim (Mayor) Serik Seydumanov called the
hunger strike "irresponsible." He told "Vremya" newspaper that some
of the protesters are well-to-do real estate investors who want to
solve their problems at "the state's expense." "Leave the Houses to
the People" organized a separate action on January 27, with more
than a hundred activists participating in an impromptu conference at
the Eurasia Center.

CONSTRUCTION COMPANY MANAGEMENT CONVICTED OF EMBEZZLEMENT


6. On January 26, an Almaty court convicted the management of the
"Verniye.kz" construction company of embezzling over 1.5 billion
tenge ($12 million) from "dolshiki." Both the company's director,
Maya Abisheva, and her deputy, Lyazzat Yesenova, were sentenced to
nine years in jail. The company's bookkeeper was given a year's
probation. A lawyer for the "dolshiki," Yermek Koyshinov, said that

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the case would be a lesson and a warning for other construction
companies.

RETAILERS PROTEST HIGH RENTS


7. On January 20, several hundred retailers from the Alatau market
went on strike demanding lower rents. They demanded that the
market's management lower rents and other fees to reflect a
slow-down in sales resulting from the global economic crisis. On
January 22, retailers from the biggest market in Almaty, Altyn Orda,
blocked the Almaty-Bishkek highway, also demanding lower rents.
Altyn Orda's management agreed to reduce rents, but only for two
months. Altyn Orda's retailers said they were not satisfied with
the concessions and intend to continue their protests. "The crisis
will not end in two months," they argued.

ALMATY EMPLOYMENT RATE DROPS


8. Almaty authorities announced that the city's employment
contracted over the past three months, with 47,000 jobs lost. The
sectors hit the hardest were construction and real estate.

HOAGLAND