The fate of the Financial Police is being decided in Kyrgyzstan

In Kyrgyzstan, the possibility of disbanding the State Service for Combating Economic Crimes is being discussed. It is not yet clear whether this will happen and to whom the functional responsibilities of the Department will eventually be transferred.

Recently, the media of Kyrgyzstan, citing their own sources in the security forces, published the news that the office of the new President of the republic, Sadyr Japarov, is preparing a document justifying the disbandment of the State Service for Combating Economic Crimes and the transfer of its functions to the Ministry of Internal Affairs.

This message was the reason for a small political duel on social networks. A day after its appearance, the current head of the State Service for Combating Economic Crimes, Syimyk Japykeev, published an emotional post on Facebook about the possible disbandment of the Department.

“The people support the Financial Police. The Financial Police works for the people. When Zhumaliev (author’s note: Kubanychbek Zhumaliev, a member of the Parliament, whom Japykeev accused of illegal enrichment before joining the State Service for Combating Economic Crimes and demanded to confiscate his property) proposed to give the government $ 1,176,000 (100 million KGS) and $ 800,000 of the investor’s dollars so that his guys (Zhumaliev’s sons) were released, we refused. And now, Pervomaisky court released them, and they didn’t pay a dime to the budget. Have we really been at a disadvantage? What should we do? Please, write your thoughts,” wrote Japykeev.

Syimyk Japykeev is one of those Kyrgyz politicians who got their position as a result of the events of October 2020. This publication can be considered a call to his supporters, since against the background of potential reshuffles in the government, the career of Japykeev is undecided. Therefore, he returned to the online format of criticizing the authorities, which he used before the so-called revolution, when he broadcasted live from his kitchen.

The newly elected President of the Kyrgyz Republic Sadyr Japarov reacted rather sharply to the publication of Japykeev on his Twitter and Facebook pages.

“We have made a revolution in order to improve our country, improve the system of state administration, stop theft from the treasury, and optimize unnecessary organs. Let’s not say “I made a revolution, therefore I must remain in this position for life, it cannot be abolished,” wrote the current head of the state.

The Council of veterans of the State Service for Combating Economic Crimes also reacted to the news of the disbandment of the Financial Police. It issued a statement against the liquidation of the service.

Former employees said that the Financial Police staff consists of 300 officers. And, although more than $ 1,529,000 (130 million KGS) are allocated annually for the maintenance of the Department, its activities are very profitable for the state.

Veterans called the accession of the State Service for Combating Economic Crimes to the Ministry of Internal Affairs a return to the system of the rod, which in turn will put a strain on business and lead to a colossal increase in corruption. In 2016, the reduction of the units for combating economic crimes under the Ministry of Internal Affairs was highly appreciated by business sector.

In addition, according to retired Financial Police officers, joining the Ministry of Finance or the Tax Service will lead to an inevitable conflict of interest, and as a result, to a sharp decrease in the indicators of compensation for damage and replenishment of the budget revenue.

They called for strengthening the Financial Police “to quickly respond to the needs of society”, as well as raising the status of the Department, reassigning it directly to the President and merging it with the Financial Intelligence Office.

The veterans are convinced that it will significantly increase the indicators of budget replenishment, the fight against money laundering, increase non-cash payments, strengthen the banking system and trust in it, ensure the transparency of all fiscal processes, bring the economy out of the shadow and comprehensive protection of investors, both from corruption, and from criminal elements.

Later, the newly elected Prime Minister Ulukbek Maripov, who identified optimization of state structures among his main tasks as head of government, denied information about the accession of the Financial Police to the Ministry of Internal Affairs.

“Now the society is actively discussing the reform of the government. There was a very big discussion about the checks of the Financial Police. If we want to raise the country’s economy, we need to weigh up everything: put all businessmen of the country on one side of the scales, and only one person and his checks on the other one. I think that the fate of the state is above all. The functional duties of the Financial Police will definitely not be transferred to the Ministry of Internal Affairs. It can be as a separate body. However, there are many questions about inspections,” Maripov said, speaking at the Parliament.

In an interview with ACCA, Director of the Association of Markets, Trade Enterprises and Services in the Kyrgyz Republic, Artur Tashibekov, said that the business community is embarrassed by attempts to strengthen the power bloc and transfer to the Ministry of Internal Affairs the functions which are unusual for this ministry.

“This will lead to additional pressure on business. For fifteen years, we have been trying to get away from the system, when ‘the ax is a cure for all diseases’, and now the idea suddenly appears to return economic crimes to the police. Everyone understands well that the Ministry of Internal Affairs has its own specifics. The policemen are working in a different direction, with a completely different contingent. Even if the functions of the Financial Police are transferred to the Ministry of Internal Affairs, then it’s necessary to retrain employees there,” says Tashibekov.

At the same time, according to the expert, if the state nevertheless decides to take such a step, then there will be a need to at least partially decriminalize economic crimes.

“Obtaining the functions of the State Service for Combating Economic Crimes by the policemen opens up wide opportunities for corruption. Security officials will be able to intimidate entrepreneurs with a preventive measure. The person will be told that he will be put in jail for a month under investigation, and he/she will do everything to avoid this, because completely different people will “contact” him/her in a closed institution,” he notes.

Artur Tashibekov also commented on the possibility of transferring the State Service for Combating Economic Crimes into direct subordination to the President.

“Perhaps raising the status of the service will work, but this is only if some kind of open platform is created that allows the business community to contact the head of the state, so that he can receive undistorted information,” summed up the Director of the Association of Markets, Trade Enterprises and Services in the Kyrgyz Republic.