KAZAKHSTAN: ALMATY NOTES, MARCH 2-13

UNCLAS SECTION 01 OF 02 ASTANA 000480

SIPDIS

STATE FOR SCA/CEN, DRL

E.O. 12958: N/A
TAGS: PGOV PHUM ECON EFIN ELAB SOCI KDEM KZ
SUBJECT: KAZAKHSTAN: ALMATY NOTES, MARCH 2-13


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."

ALMATY MASLIKHAT ELECTIONS


2. Bi-elections for the Almaty maslikhat (local legislature) will
take place on March 29. According to the city's electoral
commission, 28 candidates will be competing for three seats. Only
one of the candidates is officially representing a political party
-- in this case, the small, pro-government Adilet party -- with the
rest having registered themselves as "independents." The key
opposition parties are boycotting the bi-elections, claiming that
the electoral system is inherently unfair.

OPPOSITION PARTIES MULLING OVER STABILITY MEMORANDUM


3. The opposition Azat party, National Social Democratic Party
(NSDP),and Communist Party are still mulling over whether to sign a
"memorandum on stability" initiated by the ruling Nur Otan party.
The memorandum includes a promise to refrain from protest actions
until the economic situation improves. On March 13, several
pro-government parties -- Rukhaniyat (Spirituality),Adilet
(Justice),the People's Communist Party, and the Party of the
Patriots -- signed the memorandum. Alikhan Baimenov's Ak Zhol
party, sometimes considered to be the government's "pocket
opposition," is expected to sign soon. Nur Otan party secretary
Yerlan Karin criticized Azat, OSDP, and the Communist Party for
being dilatory in signing the memorandum, saying they must be too
busy "coordinating their positions." OSDP deputy head Amirzhan
Kosanov told "Novaya Gazeta" newspaper that the three parties are
"no simpletons" who would blindly sign on to a document put together
unilaterally by Nur Otan.

DIRE STRAITS FOR SMALL- AND MEDIUM-SIZED BUSINESS


4. The Independent Association of Entrepreneurs issued an appeal to
President Nazarbayev to take urgent action to improve the economic
situation. Small- and medium-sized enterprises are in dire straits,
said the statement, and if the situation does not improve, the
Association will organize a protest rally on March 22. In their
appeal, these entrepreneurs asked for assistance in refinancing
loans, postponing debt payments, and allowing them to pay back
dollar-denominated loans in tenge.

NUR OTAN, AZAT PARTIES DISCUSS HOUSING ISSUES


5. The opposition Azat party and the ruling Nur Otan party
discussed Almaty housing issues during a meeting of the Almaty city
administration's Council on Social Conflicts. Both parties are
represented on the Council. The issues discussed included illegally
constructed houses in the Bakai district and "dolshiki" (i.e.,
individuals who invested money into apartments that were never
completed). Over 350 families in the Bakai area are seeking to
legalize the houses they built without proper land ownership rights,
but the local administration said it does not have the authority to
do this. The Council recommended that every case be considered
individually and decided to set up a working group on the problems
of the "dolshiki." The Council also decided to ask the Procurator
General to file a criminal case against Oleg Nam, a member of the
Almaty maskikhat and owner of the KUAT construction company. He has
been accused of failing to pay KUAT employees for more than one
year. The Council will also appeal to the masklikhat to unseat Nam
as a maslikhat member.

"DOLSHIKI" PICKET DISTRESSED ASSET FUND


6. On March 11, "dolshiki" from the "Leave the Houses to People"
movement picketed the office of the government's Distressed Assets
Fund in Almaty. The activists wanted to meet with the head of the
fund, but were told that he was out. The protesters threatened an
escalation of protest actions if the Distressed Assets Fund does not
immediately buy out their bad mortgages. The activists delivered a
petition and then dispersed.

ASTANA 00000480 002 OF 002



INSPECTION REVEALS LABOR VIOLATIONS


7. A procurator from Almaty's Bostandyk district inspected 22 large
companies in Almaty and discovered numerous violations of labor law.
The most frequent violation is a failure to pay employees their
salaries. As a result of the inspections, almost 2,000 employees
received their wage arrears. At some companies, management paid to
local workers salaries two to three times lower than those paid to
expatriate employees. Their licenses to hire foreign employees have
been revoked by a court.

HOAGLAND