Pre-trial proceedings were registered in the ERPP under Articles 323 “Illegal enrichment” and 324 “Illegal participation of an official in business” of the Criminal Code of the Kyrgyz Republic. During the inspection, in September 2020, N. Aliyev, the senior investigator of the Investigative Directorate of the SSBEP under the PKR, ruled to terminate the pre-trial proceedings for lack of corpus delicti. But Syimyk Japykeev, the initiator of the charges against Zhumaliev, does not intend to give up so easily. As a result, prosecutor M. Abdyzhalalov canceled Aliyev’s decision and the investigation was resumed. Moreover, “Zhumaliev’s case” is transferred to no one else, but to the same investigator at the State Security Service Directorate of the State Security Service under the PKR.
Is justice canceled?
In his Resolution, Prosecutor M. Abdyzhalalov casts doubt on the findings of the audit of the property of Kubanychbek Zhumaliev, which was carried out by BDO Kyrgyzstan LLC on the instructions of the investigator.
“During the audit by BDO Kyrgyzstan LLC, the value of the acquired property was indicated, as reflected in the sale and purchase agreements, and the real value of the real estate of K. Zhumaliev and his close relatives at the time of acquisition was not established, which is necessary to make a legal decision,” the prosecutor writes …
This statement of the prosecutor’s office employee discouraged not only the senior investigator of the SSBEP SU under the PKR N. Aliyev and Kubanychbek Zhumaliev, but also the management of the audit company.
In their response, the auditors noted that “they do not agree with the conclusions of M. Abdyzhalalov that the expert assessment made by BDO Kyrgyzstan LLC is subject to doubt.” And they assured that “they provided the SU GSBEP under the PKR with all the factual findings, and detailed information and audit evidence to them are available in 11 volumes. They answered the whole range of questions posed in the Decree on the appointment of an audit dated August 14, 2020 ”.
Zhumaliev also stressed that he and his close relatives were presented to the auditors with the originals of the real estate purchase and sale agreements, indicating the real market value of real estate at the time of their acquisition and sale. He also stated that he was engaged in entrepreneurial activity from 2005 to 2015 and did not work in government positions at that time.
“The total amount of real estate purchased by me and my close relatives from 2005 to 2015 is 41 659 563 (forty one million six hundred fifty nine thousand five hundred sixty three) soms,” assures Zhumaliev. – And the total amount of proceeds from the sale of built objects is 80 420 725 (eighty million four hundred twenty thousand seven hundred twenty five) soms. The money received from the sale and loans from banks – 708,300 (seven hundred eight thousand three hundred) US dollars – were used to build houses for my children and objects for commercial sale. As a result, the amount of loans repaid was no less than 913,000 (nine hundred thirteen thousand) US dollars. Moreover, all due tax payments to the state were paid on time. Construction, purchase and sale of real estate was one of the areas of my business activity in the period from 2005 to 2015. Having become a deputy, as it should be, according to the law, I retired. And the business was run by my closest relatives, which is not prohibited by the legislation of our country.
According to Zhumaliev, in 2015, all financial obligations to the state were fulfilled, while there was enough money left to continue the business of relatives for the period from 2016 to 2020. Income tax from the sale of real estate was also paid to the budget of the republic on time.
Don’t wash like this
It should be noted that in the course of the audit procedures, the receipts and expenditures of funds from bank statements were also carefully studied.
As the auditors write in their conclusion, they disclosed in detail all the information on personal income and expenses of Zhumaliev K.M. and his close relatives, provided all data on accounts, finances and acquisitions, as well as real estate sales. At the same time, all income and expenses were recognized by auditors only on the basis of bank documents. Cash withdrawals from the current account are recognized by auditors as personal expenses. The transfer of funds by the Zhumaliev couple to Russia and Singapore, which were sent to these countries for the education of their children, is taken into account. There were no money transfers to other cities in the world. Also, there was not a single receipt from foreign countries addressed to Zhumaliev K. and his relatives.
But the investigators of the SSBEP SU under the PKR were not convinced by this conclusion and they sent inquiries to the countries of the CIS and Europe in order to find out the presence of property abroad. As a result, an answer was received that Zhumaliev K. and his close relatives do not have property in these countries.
I would like to draw your attention to one important circumstance, so in the Resolution of Prosecutor M. Abdyzhalalov “On the abolition of the Decree on the termination of pre-trial proceedings and the resumption of the investigation” dated October 08, 2020, it is indicated that the investigative measures of pre-trial proceedings No. 03-150-2020-000014 are not contain the implementation of the appointed forensic-construction-technical examination entrusted to the experts of the SSES under the PKR.
If you look at the forensic construction and technical expertise, it could not objectively answer the questions posed on the fact of illegal enrichment and illegal participation in Zhumaliev’s business activities during his tenure in public office, since this expert assessment is carried out only in the following cases:
– When it is required to determine the presence of defects and violations of the completed construction and installation work and the reason for their formation;
– it is required to determine the volume and cost of the completed construction and installation work;
– it is required to determine the technical condition of a construction object, its compliance with construction and town planning norms and rules;
– it is required to determine whether the construction site threatens the life and health of citizens, and so on.
Considering that the pre-trial proceedings pursued other goals, namely: to prove illegal enrichment or a significant excess of the value of the assets of the official – Zhumaliev over the amount of his legal income, this examination is absolutely meaningless.
Income equals expense
The specialists of the audit company, having comprehensively studied all the materials provided by the investigators of the prosecutor’s office, clearly and clearly wrote with their conclusion, an official document, which reflects an expert assessment of the reliability of financial documents. “All immovable property was purchased with funds from legal sources formed from savings collected from wages, loans from individuals, bank loans.”
Each property was carefully checked by auditors, all documents were examined for the legality of the acquisition of a particular building. Each transaction was carried out with due registration in the state registration authorities, for which there are relevant state acts, Resolutions and duly executed sales and purchase agreements. All transactions are legal, since not a single legal act of title has been challenged, not a single transaction has been declared null and void and not canceled. Real estate objects were purchased on the open market at market prices, many of them were built on their own by the entire family of the deputy over a long period of time as material opportunities appeared.
In addition, the report of the independent auditor on the actual findings and in separate reports for each legal entity lists violations of the requirements of the current legislation and other regulatory legal acts of the Kyrgyz Republic in the implementation of financial, economic, entrepreneurial, economic and other activities. But it should be noted that the responsibility for the activities and violations of the requirements of the law in the course of its activities is borne by the executive body, not the founder.
In the course of checking the activities of economic entities from the above list for affiliation with Zhumaliev K.M., which by its status could influence large transactions and sales, the audit found that material and / or other damage to the interests of the state, society and individual citizens does not have places, since these business entities did not carry out public procurement, did not receive grants and subsidies from the state. Concealment of taxes and damage on a particularly large scale was not revealed.
The activities of the companies were carried out by attracting foreign capital investments, commercial loans from banks and loans from founders.
These conclusions are confirmed by the auditors by the collected documents and with a new study of the repeated charges against Zhumaliev it is impossible, as they say, to “suck out of the finger” the facts necessary for the investigation. Moreover, in 2005, Zhumaliev’s activities, in the years when he was in the civil service, namely from 1993 to 2005, was checked by a specially created commission, consisting of representatives of law enforcement and fiscal authorities, which did not find any violation of laws. Also, inspections were carried out in 2012 and 2016, which also did not reveal any violations. It is difficult to understand the logic of law enforcement agencies in relation to the current deputy of the Parliament of the Kyrgyz Republic Kubanychbek Zhumaliev, who are trying in any way to accuse a person of abuses that he did not commit.
In response to accusations
Last week, the Pervomaisky District Court of Bishkek received a statement from the deputy of the Parliament of the Kyrgyz Republic Kubanychbek Zhumaliev against the chairman of the State Service for Combating Economic Crimes, Syimyk Japykeyev, for using his official position, as well as unlawful prosecution and unconfirmed accusations of crimes committed.
The deputy’s lawyer Baktybek Zhumashev explained that the head of the Financial Police disseminated false information, stating that the deputy of parliament Kubanychbek Zhumaliev offered him one million dollars through an intermediary and that he would be in prison.
– This is a complete lie. I don’t know where Syimyk Zhapykeev gets such information, – said Baktybek Zhumashev, adding that Syimyk Zhapykeev’s statement that Zhumaliyev will be imprisoned is illegal.
– With these words, Japykeev intervenes in investigative actions and puts pressure on the investigator. Why should Zhumaliev be imprisoned? An investigation has been going on since last summer, and to this day there is not a single proof of his illegal enrichment, the lawyer explained.
Now, apparently, the chairman of the State Service for Combating Economic Crimes, Syimyk Japykeev, will have to prove in court that the statements he made are true.
MK-Asia will continue to monitor developments in this case.