Kyrgyzstan stops controls

The government in Kyrgyzstan wants to ease the burden on companies for the time being - and is taking an unusual step: a moratorium on state inspections is intended to improve the business climate until the end of the year. At the same time, a corruption scandal surrounding the state-owned energy company Kyrgyzneftegaz is shaking the country. Moratorium as an economic signal The proposal provides for the authorities' audits to be largely suspended - with exceptions for tax inspections, criminal proceedings or specific cases of suspicion, for example. The measure is seen as an attempt to stabilize the economy and boost investment. However, the timing raises questions. Just a few days earlier, the tax authorities had made serious accusations against former security chief Kamchybek Tashiyev. He and his entourage are accused of causing the state oil and gas company millions in losses. Corruption and power struggle The affair is politically explosive. President Sadyr Japarov had previously dismissed Tashiyev and has since stepped up his crackdown on his network. Observers also see this as a power struggle within the political elite. The fact that the accusations are only now becoming public is causing criticism. Journalists had already investigated similar cases years ago. The tax authorities, on the other hand, point to previous power structures that prevented investigations. The government is therefore facing a balancing act: on the one hand, the moratorium is intended to ease the burden on companies, while on the other hand, there is growing pressure to consistently investigate corruption. The post Kyrgyzstan stops controls appeared first on ostwirtschaft.de.