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Friday prayer attacks kill 20, injure about 50
Uzbekistan closes about 100 businesses
Country continues fight against corruption
By Shakar Saadi
2011-05-09
TASHKENT – In the past six months, Uzbekistan has closed approximately 100 stores and factories, citing a crackdown on corruption.
“The fact that about 50 of these enterprises were (financed by) Turkish capital has drawn the public’s attention,” said independent economist Hafiz Yunusov.
President Islam Karimov at the end of 2010 said he would step up the fight against corruption in 2011.
“Most these operations violated basic norms,” Yunusov said. “Many of them avoided paying taxes.”
Authorities closed many of the companies because they were suspected of aiding the banned extremist Nurchular movement, an anonymous National Security Service source said.
Authorities filed charges solely in connection with criminal activity and had no intention of discrediting the Turkish people, Gulnoza Rahimova, the general prosecutor’s spokeswoman, said. “The auditing and closure of enterprises whose investments came from Turkish citizens are not anti-Turkish propaganda.”
Turkish businesses were not the only ones shut down, Rahimova said.
Closed businesses included the Turkish supermarket Turkuaz, whose doors shut March 2, Customs Committee spokesman Olikrom Jalolov said.
Customs, tax violations cited
“During the audit, we … put an end to several customs and tax violations … related to the smuggling and selling of foreign-produced consumer goods as well as the manufacturing of counterfeit products,” he said. “In all, we uncovered more than 40 violations, resulting in the seizure of more than $3m in various items.”
Authorities closed many of the companies because they were suspected of aiding the banned extremist Nurchular movement, an anonymous National Security Service source said. “The businesses that were closed were allegedly distributing religious books and aiding Nurchular,” he said.
Zulhumor Madiyeva was a cashier at Turkuaz. An investigator repeatedly called her in for questioning, saying that he was interested in her knowledge of Turkuaz management’s criminal activities and its involvement with Nurchular, she said. “I never heard about the activities of this or other banned groups in Turkuaz’s operations,” she said.
Bahtiyor Akunov was a security officer at Turkuaz. He guessed that the supermarket had violated the law.
“Many saleswomen in the grocery department took part in ‘harmless crimes’ such as changing the production date for foods. There were other violations too,” Akunov said.
The shuttered businesses were involved in tax evasion and corruption, Tashkent Department of Internal Affairs investigator Amir Talibov said.
The closure of those companies has not severely damaged bilateral relations, an anonymous Turkish Embassy source said. The countries have maintained a 30-day visa-free regime for each other’s citizens and 2010 bilateral trade amounted to $1 billion, almost the same as in 2009, the source said.
“If you judge the situation on the whole, then these enterprises had no impact on the country’s business,” Yunusov said. “This went to show only that this time the fight against corruption and lawbreaking has taken a serious turn.”







![Renovations proceed May 15 in the Khyber Pakhtunkhwa Provincial Assembly building ahead of the first session for the newly elected assembly. No date has been set for the opening session. [Syed Ansar Abbas]](/shared/images/2013/05/17/pakassemblyphoto-230_184.jpg?1368834606)
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Reader Comments
Why were they closed? Because they failed to share their profits. You think everything is simple and they play by the rules everywhere, while Turks have always been a pain in the ass, take for instance the 1989 Fergana event when Turks were targeted for reasons that everyone knows, and when all were slaughtered they played a farce called "peace." The proper order can be established only when control is exercised from the outside like during the USSR!!!
President Islam Karimov in late 2010 declared he would be tough on corruption in 2011. Blessed are those who believe in it.
I remember at the beginning of independence Islam Karimov said we would take the Turkish path. Now Turkey is ruled by the Islamic party, whose rise to power alarmed the military. Turkey has a visa-free regime with Russia, while Uzbeks will need a visa to travel there.
I think they are closing them down to make sure they work honestly because some stores still sell spoiled food, for instance sausages and canned food without the expiration date.
If you want to, you can find problems with the law in 99% of businesses. But there are limits to illegal activities that are allowed. But the problem is different in this situation. Because of the lack of information about these closing businesses, many entrepreneurs are afraid to work and many have adopted a wait-and-see approach. The same situation is with the demolition of retail outlets. Take, for example, the Navoi shopping arcades that were demolished and high-rise apartment blocs with parking lots were built in that place, so all people benefited (except for those who rented out the demolished stores), no traffic jams, but I think a good newspaper article or a television report would dispel anxiety as people are waiting for something bad to happen.
2011 has been declared a year of small businesses in Uzbekistan. Funny, but they cut the businesses' throats open. Few new enterprises have been built and there are no factories. The introduction of plastic cards was intended to fool people. And our daddy rubs shoulders with evil spirits, the Turks, the Americans, he must have been influenced by his daughter. Corruption is so huge that it makes no sense to talk about it and better reconcile with it. Workers and teachers get ridiculous pay. I am sorry for my Motherland.
In Uzbekistan, there is no free conversion! What trade are you talking about? So people are trying to find loopholes.
A couple of years ago, Turkey's prime minister told a Russian national TV network that Turkey funded opposition organizations in Uzbekistan - and you still wonder why our security services close down Turkish companies based on the territory of the republic.
I think that Uzbekistan has chosen the right path of economic and state development.
Heh ... I was a little amused, okay I will not rejoice. They closed it and did the right thing (strictly my opinion). I remember a conversation 7-8 years ago with one friend, "How are you?" - "Good." - "Where are you? How are you?" - "Yes, everything is ok. I found a job at a famous Turkish fast food restaurant in the city center, an intern job, but I was promised a good pay, so I will work hard for free for a month." A month later she was fired for some nonsense. You'll laugh for a long time, but two more girls I know found themselves in the same situation and in the same place. Was it done deliberately or was it a coincidence? Regarding customs, taxes, etc. Dear foreign businesses, would you please at least respect the laws of the country in which you work and you will be happy.
If the media have been publishing articles on the reasons for retail outlet closures (at the Alai, Parkent and other markets), there would be no speculations on the "unlawful" action. Is it all so well at the markets? Prices are not determined by the market (all the same as if someone from the top sets them) as it was before. There were kolkhoz markets where farmers sold their produce, rather than profiteers who had nothing to do with production. It is necessary to establish order everywhere. As they say, "You should trust, but check." Only certified farmers have the right to sell produce, not profiteers. We must call things by their proper names. Then the prices will be normal and competitive. Why is there no sanitary and weight control? And if you open a store, you must have a license to sell certain goods that should be displayed. It should specify the name of the person who owns the shop and telephone numbers of consumer protection services. More support should be offered to producers, and they should not be intimidated by various inspections (tax officers, firefighters, sanitary services). With regard to extremist organizations, there must be more to talk about it in the press and on television. More openness will rule out various kinds of rumors used by the same criminal forces.
And how can an import company work honestly without having an opportunity to convert currency? Any such firm can be closed even without inspecting books.
These are all people who can’t stand to see Uzbekistan develop. They look just like chameleons – they say one thing today and another tomorrow. They need to be reminded of one thing: this is only the beginning now. Only twenty years have passed. After twenty more, the ones bragging will not be able to come back to Uzbekistan even if they sell all their possessions. That is when we will have something to talk about. The Uzbeks have set the bar high.
I think we need to revise Uzbekistan's business strategy. I am analyzing and I have come to the conclusion that we do not have a free market, taxes are high and it is impossible to run a business in our country and respect the law... I think that's the result... Our government itself is forcing people to avoid taxes... I would like to wish them patience.
This revives memories of the years 1998 and 1999 when all Turkish firms were closed within one day and they were ordered out of the country without even being allowed to take their stuff with them.
Why do not you have any opinion of the owner of these companies shutting down by Uzbek government. When you give chance to them express their situation and offence, your web site can proove that you are indepence from any centre.
Many, if not all, firms and stores in Uzbekistan offend against the law. Everybody understands that you will not survive otherwise in Uzbekistan. I myself worked for a Turkish firm that kept two accounting systems. It paid us under the table. And the practice is widespread.
I am glad that our Government is implementing the right policies. The head of our government, Islam Karimov, is doing the big job of boosting Uzbekistan’s economy.