KAZAKHSTAN: ALMATY NOTES, MARCH 28 - APRIL 10

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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.

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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