KAZAKHSTAN: ALMATY NOTES, MARCH 28 - APRIL 10

UNCLAS SECTION 01 OF 02 ASTANA 000654 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PHUM ECON SOCI KDEM KZ SUBJECT: KAZAKHSTAN: ALMATY NOTES, MARCH 28 - APRIL 10 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) The "Almaty Notes" series from U.S. Office Almaty focuses on developments in civil society, the media, and the political opposition in Kazakhstan's "southern capital." OPPOSITION LEADER ABILOV OWES TAX DEBT? ¶3. (U) Bulat Abilov, leader of the Azat opposition party, was taken by surprise when he found his name on a list of individuals who owe tax debts, which was published on March 30 by the Almaty Tax Committee. Abilov was on the list in his capacity as the former head of the Democracy and Rukhaniyat Education School, which allegedly owed 119 million tenge (approximately $80,000) in back corporate taxes. On March 31, Abilov issued a statement denying the Tax Committee's claims. According to the statement, the Democracy and Rukhaniyat Education School was established as a non-profit organization in 2002 by 21 individuals, and existing law does not permit imposing corporate taxes on non-profit organizations involved in educational activities. In 2004, the school received 180 million tenge (approximately $1.2 million) in donations, which were spent on book publishing and activities supporting the mass media. In July 2005, the school voluntarily initiated procedures to shut itself down. In 2006, the Almaty Tax Committee determined that the school was involved in commercial activities and levied corporate taxes against it. In his statement, Abilov described the Tax Committee's move in putting his name on the list as politically motivated, with the aim of opening up a new criminal case against him. He intends to challenge the Tax Committee in court. (NOTE: An ongoing corruption case against Abilov remains in limbo. The last court hearing in that case was in 2007. END NOTE.) ZHAKIYANOV'S PAROLE OVER ¶4. (U) The parole period for opposition leader Galymzhan Zhakiyanov expired on April 2. In August 2002, Zhakiyanov was sentenced to seven years in prison on charges of abuse of power during his tenure as akim (governor) of Pavlodar oblast. After serving three years in prison, he was released on parole in January 2006. He has recently been residing in China, where he is reportedly receiving medical treatment. ALGA CRITICIZES MASLIKHAT BY-ELECTIONS ¶5. (U) On March 31, the unregistered Alga opposition party issued a statement criticizing the recent by-elections for the Almaty maslikhat (city council) as not even approaching democratic standards. The party accused the authorities of manipulating the elections through falsification, bribing the electorate, and using administrative resources to benefit favored candidates. Alga said that dozens of candidates were disqualified for alleged inaccuracies in their financial declarations, including one barred from running for failing to disclose a bank account which had a balance of just 200 tenge (about $1.33). STUDENTS PROTEST AT KIMEP ¶6. (U) On March 31, about 500 students from the Kazakhstan Institute of Management, Economics, and Strategic Research (KIMEP) participated in a demonstration at the office of KIMEP President Chan Young Bang to protest high tuition and recent layoffs of professors. After two hours, KIMEP's vice president received the students and talked to them about KIMEP's difficult financial problems. The students were not satisfied, but dispersed. Representatives of the procurator's office participated in the meeting and called on the students to obey the law. SCHISM IN "LEAVE THE HOUSES TO THE PEOPLE" MOVEMENT ¶7. (U) Activists from the "Leave the Houses to the People" movement announced on April 7 their decision to suspend a hunger strike which they had begun on March 18 protesting the problems of "dolshiki" (i.e., people who invested money in apartments that have not been completed) and individuals who cannot afford to pay their mortgages. ASTANA 00000654 002 OF 002 They suspended the hunger strike because of resumed negotiations with the authorities, the activists said. A city administration commission studying these problems is restarting its work, and the Almaty branch of the ruling Nur Otan party is reportedly signing a memorandum with banks under which they would suspend foreclosure sales. ¶8. (U) Yelmira Iskakova, leader of "Leave the Houses to the People," and Nikolay Komarov, her deputy, held a press conference in Almaty on April 8 to brief journalists on their new approach. They have decided to suspend radical protest actions and defend their rights in other ways, such as by bringing legal cases in the courts. Iskakova and Komanov claimed that 90 percent of the 800 members of the "Leave the Houses to the People" have decided to join the organization "Nash Dom (Our Home) -- Kazakhstan." "Nash Dom" offered them large spaces for meetings and a staff of qualified lawyers, Iskakova said. "Nash Dom" was established recently by the Independent Association of Entrepreneurs. According to the head of "Nash Dom," Talgat Akuov, the entrepreneurs decided to unite people who have suffered from the economic crisis, including "dolshiki," individuals who cannot make their mortgage payments, and businessmen. Iskakova harshly criticized noted activist Aynur Kurmanov, the inspiration behind "Leave the Houses to the People," who, she claimed, was inciting people to radical protest actions. She maintained that Kurmanov was pursuing political aims, while members of "Leave the Houses to the People" want to resolve problems with their housing. ¶9. (SBU) In private comments to us on April 8, Kurmanov claimed that "Nash Dom -- Kazakhstan" was a project initiated by the authorities to split "Leave the Houses to the People" and other social movements, to prevent public protests. Contradicting Iskakov, he claimed that most of the members of "Leave the Houses to the People" refused to join "Nash Dom." According to Kurmanov, the members, in fact, decided to broaden their movement to the national level. AUTHORITIES PLAN TO LEGALIZE LAND HOLDINGS ¶10. (U) In the near future, Almaty authorities plan to legalize ownership rights for about 3,500 land plots illegally taken over by migrants in the Alatau district on the outskirts of Almaty, Bagdat Manzorov, the deputy head of the Alatau district administration, announced at a meeting with local residents on April 3. According to Manzorov, a working group has determined that 4,523 illegal-constructed houses have been built in the district. The administration has already legalized 149 land plots. About 1,000 families who illegally built on land plots in protected zones for gas mains will have to vacate their residences. The Almaty city administration plans to ask the Almaty oblast administration to give these families land plots outside the city limits. NAZARBAYEV ORDERS ACTION AGAINST CONSTRUCTION COMPANIES ¶11. (U) While visiting Almaty on April 9, President Nazarbayev called attention to the fact that for 2008-09, the government has allocated 56 billion tenge (about $371 million) to support residential construction in Almaty. He instructed the city administration to take to court construction companies that have failed to carry out their contracts. "Those builders who took money from people but built nothing drive Land Cruisers and own mansions and property abroad. Everything they own should be seized, regardless of who they are," the President ordered. HOAGLAND