How The Yermegiyayev Family Privatized A Concrete Plant For Almost Nothing — And What Tasmagambetov Has To Do With It

A listing for a precast concrete plant, previously owned by the father of convicted former official Talgat Yermegiyayev, has appeared on the state property auction website. Orda.kz explains how this large asset, worth more than eight billion tenge, ended up in the hands of the family of the chief curator of EXPO-2017.

The plant is now owned by Problem Loans Fund JSC. Financial documents show that for many years before that, it belonged to Sert JSC, whose founder is Amangeldy Yermegiyayev — an honored figure of Kazakhstan, businessman, former party functionary, associate of former President Nazarbayev, and father of the infamous Talgat Yermegiyayev.

From 1991 to 1993, Yermegiyayev Sr. was president of the Almatystroy concern.

In 1993, he became president of the Almatykurylys holding company. From 2002 to 2004, he served as acting chair of the Otan Republican Political Party. Starting March 12, 2004, he served as deputy chair of the Otan party under Nursultan Nazarbayev.

A Good Deal

The appraisal report states that the production facility covers 40,000 square meters in Almaty. The property includes buildings, structures, utility rooms, and railway tracks. There is no point in listing all the assets, but their market value was estimated at 8.2 billion tenge.

Given that Sert JSC was once a successful developer, the plant manufactured reinforced concrete structures for the company’s projects.

However, the plant was built back in 1985, meaning Amangeldy Yermegiyayev successfully privatized it at the time and later completed construction.

In 2000, Sert JSC leased this land from the Akimat for just 1.8 million tenge per year. The agreement lasted until September 2003, after which Yermegiyayev bought the production base.

Notably, the contract was signed by Imangali Tasmagambetov, then Akim of Almaty.

History Of The Fall

Sert was once a major player in Almaty’s construction sector, especially in shared-equity housing projects such as the Zhayly residential complex. But serious problems began to emerge in the late 2000s: the developer failed to install utilities, constantly delayed completion dates, and equity holders complained about living without water and other basic amenities.

By 2009, people were already publicly stating that the money they had paid had been “misused.” The company was buying land and building stores and hotels, but was not completing apartments for the equity holders.

The investors themselves did everything they could to draw attention to their problem: they set up tent camps near the construction sites, moved into unfinished buildings, chained themselves to construction beams, and even tried to move into the Rakhat Palace Hotel, which, according to them, belonged to the owner of the holding company, whose subsidiary was Sert JSC.

In 2010–2011, Sert JSC accumulated significant debt on loans and taxes and became mired in lawsuits with equity holders, contractors, and its own employees.

The company attempted to resist: tax authorities filed bankruptcy petitions, but the courts initially rejected the claims, siding with the developer. Bankruptcy was denied, but the situation continued to worsen: construction work was halted, and the company’s assets were seized.

According to current data, Sert JSC owes 1.6 billion tenge in taxes and another 5.1 billion tenge under enforcement proceedings.

Corruption At EXPO-2017

Talgat Yermegiyayev was born in Almaty in 1969 and rose through the ranks of senior government positions. He served as Kazakhstan’s Minister of Tourism and Sports, later headed the Agency for Sports and Physical Culture, and in 2013 became head of the national company Astana EXPO-2017.

In 2015, a criminal case was opened against Yermegiyayev. Investigators alleged that during preparations for the exhibition, he and his subordinates took part in the embezzlement of public funds and accepted large-scale bribes.

The total damage to the state was estimated at about 10 billion tenge.

In June 2016, the court sentenced him to 14 years in a maximum-security prison colony. The court also ordered the confiscation of property acquired illegally, and Yermegiyayev was banned from holding leadership positions in government or private organizations. The verdict was upheld on appeal.

Initially, he was under house arrest, and that time was counted as “two days for one” toward his sentence.

However, Yermegiyayev is currently serving most of his term in the LA-155/12 penal colony in the Almaty region. In recent years, he has made several attempts to be released on parole, but the court has denied each request.

His lawyers continue to argue that the case was fabricated and are seeking a retrial.

Original Author: Ilya Astakhov