Global Integrity Report HomeGlobal Integrity Home
2007 Assessment

Kyrgyz Republic: Integrity Indicators Scorecard

Kyrgyz Republic: Integrity Scorecard Report > Sub-Category: Privatization
Indicators   Score
50 Is the privatization process effective? 67
51 Can citizens access the terms and conditions of privatization bids? 70

Indicator and sub-Indicator Details

50 Is the privatization process effective?
 
  50a: In law, all businesses are eligible to compete for privatized state assets.
 
Score: YES  NO score
  Comments: Only state-owned organizations and corporations are not allowed to compete for privatized state property.

References: The Law on Privatization of State Property of 2 March, 2002, N 31, Article 12

  50b: In law, there are regulations addressing conflicts of interest for government officials involved in privatization.
 
Score: YES  NO score
  Comments: There is no a special regulation. But public officials involved in privatization are considered as being like any other civil servants.

References: The Law on Civil Service of 11 August, 2004, N 114, Article 11

  50c: In practice, conflicts of interest regulations for government officials involved in privatization are enforced.
 
Score: 100  75  50  25  0  score
  Comments: Conflict of interest of privatization officials is regulated only by the Law on Civil Service, which is a general framework that cannot be applied directly. There is no special mechanism or procedure to deal with a possible conflict of interest.

References: Confidential source (expert in civil service law)

51 Can citizens access the terms and conditions of privatization bids?
 
  51a: In law, citizens can access privatization regulations.
 
Score: YES  NO score
  Comments: The general public must be informed about the date, place and time and provided the contact phone numbers of privatization authorities. After completion of a bid, the final price of a privatized property has to be published. All of this information is to be announced in the local press.

At the same time, the Concept of Privatization approved by the Parliament and the Program of Privatization, which includes a list of state property for privatization in the next two to three years, in addition to general recommendations on how it should be implemented, are made available to the public. The most recent program is effective until 2007.

References: The Law on Privatization of State Property of 2 March, 2002, N 31, Article 21

  51b: In practice, privitizations are effectively advertised.
 
Score: 100  75  50  25  0  score
  Comments: Privatization of the most valuable businesses and properties in Kyrgyzstan usually have been made illegally through relatives of the former President Akaev and his wife.

References: The Report of Governmental Commission on Definition of Property of the Former President Akaev, www.akipress.kg

Peer Review Comments: Not only Akaev's family has been involved.

  51c: In law, the government is required to publicly announce the results of privatization decisions.
 
Score: YES  NO score
  Comments: Results of privatization bids (auctions) are to be announced in the local press within 30 days after completion.

References: The Law on Privatization of State Property of 2 March, 2002, N 31, Article 21

  51d: In practice, citizens can access privatization regulations within a reasonable time period.
 
Score: 100  75  50  25  0  score
  Comments: Politically sensitive information, such as the names of owners, may be hidden, as it was in case of Akaev's property.

References: The Report of Governmental Commission on Definition of Property of the Former President Akaev, www.akipress.kg

  51e: In practice, citizens can access privatization regulations at a reasonable cost.
 
Score: 100  75  50  25  0  score
  Comments: An ordinary citizen needs to make a lot of effort to get this information, for example, by going to a local office of the State Property Fund.

References: Interview with privatization expert (confidential source)

Global Integrity uses a Creative Commons licence, unless noted here: Terms of Use.
1029 Vermont Ave NW, Suite 600, Washington, DC 20005 USA
Phone: 1.202.449.4100   -   Fax: 1.866.681.8047   -   info@globalintegrity.org