Jusan: Shigeo Katsu Not a Shareholder. Then who?

The press service of Jusan Bank sent Orda’s editorial office an official comment. They reported that the current chairman of the bank’s Board of Directors and the former president of Nazarbayev University, Shigeo Katsu, is not a shareholder of the financial institution. The bank also gave a number of additional explanations. Orda's financial analytics department only has more questions as a result.

Same Salary

According to Jusan Bank’s 2020 financial statements, the top management’s remuneration amounted to nearly 15 billion tenge (to be more precise, 14.957 billion tenge). A number of Kazakhstani media reported on this, including Orda. The bank hadn’t released a clarifying comment on this until now:

"The actual monetary remuneration to the board in 2020 and 2021 amounted to: 652 million tenge and 754 million tenge, respectively." As for the rest of the remuneration, then, according to the accounting policy, quote: "This amount is mainly an accrued expense of the bank, associated with the formation of a reserve for subsequent long-term payment agreements based on shares."

Incidentally, in 2020, according to the press service, the Board of Directors received 1.7 billion tenge in remuneration, a total of 2.47 billion tenge for all top managers.

RMB: Statements of Jusan Bank for the 2020 fiscal year were released only in March 2022. In other words, a year-long delay. It caused quite a "furore" among professional communities when other companies had already published results for 2021.

In 2020, Jusan Bank budgeted future expenses for the implementation of motivational payments, i.e. bank shares, for top managers. But detailed information about this appeared only in their annual report for 2021 five months later, in August 2022.

It is unclear why the bank has not commented on the management compensation program with shares. This could have added fuel to the fire during New Kazakhstan’s construction.

Katsu Is Out of The Picture

In the annual statements of Jusan Bank for 2021, information was published on the share-based payment system. According to it, in April 2021, 1.16% of ordinary shares or 1.9 million shares were transferred to top managers in the amount of 4.3 billion tenge at the rate of 2,296.17 tenge per share, with the right to a corresponding share of dividends. 

At the same time, 3.141 million or 1.91% of common shares were reserved for the bank's management. More than 1.2 million or 0.75% of shares thereby remained in the bank's reserve for subsequent remuneration for management.

Orda’s Financial Analytics Department suggested that Shigeo Katsu could have also received a payout in the form of shares and become a Jusan Bank shareholder. The press service of the bank outright denied this.

"Mr. Shigeo Katsu has never been and is not a shareholder of the bank. He is not included in the list of minority shareholders who own 1.16% of the bank's common shares. He is the Chairman of the Board of Directors, the strategic governing body of the bank."

But then who owns the 1.16%? Jusan Bank admitted that currently less than half of the current board members from among the current managers have the bank’s common shares. Its ownership share is 0.35% of the total number of common shares. The bank did not give specific names and clarify how many there are, referring to the law and commercial confidentiality. Accordingly, another 0.81% belongs to a former manager. 

The former members of the Board: Aibek Kayyp, the former chairman of the Board of Jusan Bank and the grand-nephew of Daulet Ergozhin: the convicted ex-deputy of Karim Massimov for the National Security Committee, and Alimzhan Almambetov.

The press service of Jusan Bank also reported that remuneration in the form of shares for members of the Board of Directors, which includes Shigeo Katsu, was not previously distributed and does not apply now. The payment is made only in cash.

But the current management still has a chance to join the ranks of Jusan Bank shareholders. Indeed, more than 1.2 million or 0.75% of shares remain in the bank's reserve for subsequent remuneration. The current book value of the bank's shares is KZT 3,456.74, or KZT 4.28 billion for the remaining 0.75% of the shares.

The bank’s press service reported that it was decided not to pay remuneration via shares. It is not expected to provide payments in this form. But the bank did promise not to pay dividends in the amount of 172 billion tenge and then changed its mind. Meanwhile, Shigeo Katsu did not plan to resign from the post of president of Nazarbayev University. Everything and more is possible in New Kazakhstan.

Jusan, Show Your Face

The situation around public money being used in the rehabilitation of ATFBank and its subsequent sale to the Jusan group remains rather vague. Official state agencies remain silent, referring to the seal "For official use". 

Only former deputy Kanat Nurov displayed concern while in Parliament. But a replacement has yet to be found to continue his brave and thankless work in the new Majilis. According to Jusan Bank's statements for 2020, the bank acknowledged the income from the profitable acquisition of ATFBank - 170 billion tenge. After that, in 2021, they paid dividends to shareholders in the amount of 115 billion tenge.

We ask the bank to publish the subsidiary ATFBank’s audited statements on the results of operations for 2020, as well as for the first and second quarters of 2021: before the two banks’ assets were merged. 

The victims in this story do not seem to be the government of Kazakhstan, which provided assistance, but the common people.

Original Author: Orda

DISCLAIMER: This is a translated piece. The text has been modified, the content is the same. Please refer to the orginal piece in Russian for accuracy.