Probe into legality of privatisation of 48 VIP-cottages launched

19.12.2017
Probe into legality of privatisation of 48 VIP-cottages launched

A probe into the legality of the privatisation of 48 VIP-cottages outside Bishkek is being launched, the Prosecutor General's Office said in a statement on Monday.

As revealed in September, the State Property Management Fund of Kyrgyzstan sold 48 mansions of the Ideal House LLC near the Ala-Archa state residence for 142 million som or approximately $2,074,000. The selling birthed questions if the transaction was legal after journalists suspected corruption as the price for once owned by state cottages was underestimated from 242,362,800 som to 130,000,000. 

The objects were first put up at auction on October 5, 2015 with the starting price of 242,362,800 som, however zero application was received, the Fund said. Later, the State Property Management Fund put the mansions at an auction again with 46% discount: starting price was 130,000,000. Thus, according to Tazabek calculation, the sale price for 1 mansion was 2,958,300 som or $43,200.

The VIP-cottages were sold to VostokTekhKomplekt LLC out of only two participants of the bidding.

48 objects of unfinished construction were nationalized in 2010 in accordance with the government resolution.

"The guilt or innocence of the leadership and other officials of the State Property Management Fund in privatization of the objects will be established by investigation," the Prosecutor General statement said. 

Reported by AKIpress (Kyrgygzstan).