FAMILY PHARMA BUSINESS

It is difficult to verify Kagazdiev's words in practice. However, we can say that one of his relatives' companies in April last year almost got the preferential right to supply medical and other goods to state institutions without tenders.

This measure to make the list was explained by the need to avoid bureaucratic mechanisms during the coronavirus pandemic, when medical and other institutions needed medicines and protective equipment, and by the decline in economic performance in several sectors.

In this case, Fameco company (formerly Kamelin Asia) was proposed to be allowed to supply medical masks, respirators, protective coveralls, shoe covers, medical gowns, medical caps, and special clothing without tenders.

However, the initiative was ultimately not adopted - a representative of the Department of Public Procurement said that the document "is just standing there now".

Prior to the consideration of this draft decree, one of the companies belonging to the official's relatives, Intermed LTD, had already actively participated in tenders to combat the coronavirus. For 2020, it ranked among the top five companies that utilized nearly 20 percent of the total COVID-19-related procurement budget, with contracts worth more than 900 000 USD (69 million Soms) to provide hospitals with protective equipment, medicines, consumables, and other medical supplies.

The Chamber of Accounts found out in 2017 that Fameco company ("Kamelin Asia") had supplied equipment at the price almost three times higher than the factory price, which was about 6 million Soms.

"In fact, according to the acts of acceptance and invoices Kamelin Asia Ltd. supplied the identical equipment with the same brand name to the NCMCW but now at the price of 14.5 million Soms", - the report says.

In the summer of 2022, in another complaint from Fameco's competitor - company "Amika" wrote that they do not understand how the company owned by Kagazdiev's relatives won the tender for 57 million Soms without complying with the requirements.

"[...] how is it that the company that meets the qualification requirements of the procuring organization became non-compliant, and the company that does not comply becomes compliant?" - "Amika's representative wrote.

Nuriya Toktogulova, a cousin of the official, confirms that companies registered to her and other relatives have won national center tenders. However, she does not consider this an imitation of competition.

One of the companies where Toktogulova is listed as a director, ElChi Pharm, was suspected of having family ties between its management and the former Director of the NCMCW, Kamchibek Uzakbaev. This company also periodically won tenders of the national center.

According to Toktogulova, she no longer works at ElChi Pharm, and she was not even acquainted with the founder of the company, Zarema Kamchybekova. Journalists could not find direct links between the owner and the former director of the national center, except that Kamchybekova and Uzakbaev's son are the founders of the same political party "El talaby".

However, Toktogulova admits that she knows Uzakbaev well, saying that this acquaintance helped her also to register the national center's pharmacy in her name.

Gulmira Abdyrazakova, Chairwoman of the Board of Forum on Transparency and Accountability in Public Procurement, thinks that there are more than enough reasons to investigate links between companies affiliated with Kagazdiev's relatives and NCMCW.

"Simply on all fronts, to examine and understand where the connections are. That is what anti-corruption measures are for. [...] For example, one medical institution both is involved in procurement and deals with pharmacies... and if a relative is also in charge there, then this issue definitely needs to be checked for corruption," Abdyrazakova said.

One of the lawyers interviewed believes that if the link is found between the supplier and the national center, which could indicate a direct conflict of interest, the former director or other official could be held liable.

"If the procuring agency is state-owned, then yes, it's a direct conflict of interest. Knowing that they are affiliated [...] they should have refused to participate in this tender," said one lawyer who insisted on anonymity.

Medical experts interviewed said that medical tenders are one of the investigated corruption schemes in the healthcare system and that, when they are discovered, tenders are most often revised.

"From my experience of working in the healthcare system for 25 years, I have seen complaints, proceedings related to such cases. If the public, civil activists paid attention to them, such tenders were revised," said Elena Bayalinova, an expert in Kyrgyz healthcare.

Bermet Baryktabasova, a former employee of the healthcare system, said that nepotism in Kyrgyz medicine is a common practice for officials holding positions in the healthcare system:

"There was a big commission set up at the Medicine Supply Department (MSD) and as a result of the investigation several criminal cases were opened against [the former] director. The officials were also found to have affiliations, relatives in the pharmaceutical business, and their own pharmaceutical companies."

According to her, many people know about the relationship of officials with companies, and such networks should be thoroughly checked

"It is necessary [...] to declare incomes, all family ties of medicine officials in the pharmaceutical business, during tender processes - who is distant relative to whom, through a wife or children... This should be kept under control of fiscal authorities", - concludes Baryktabasova.

Nurdin Kagazdiev noted that he is not holding on to power and is ready to leave the post of the Director of the Department at any time.