BACKGROUND: A recent International Crisis Group Report termed the March events in Kyrgyzstan as “less a revolution than a process of state collapse”. And this situation of lawlessness and anarchy creates perfect conditions for people to illegally seize property. The most advertised of such incidents was the capture of a coalmine in Kara-Keche, in the Naryn region of central Kyrgyzstan, by workers of the enterprise. The workers said this was an attempt to bring about justice. When the company was privatized 14 years ago, businessman (and now also member of parliament) Kamchybek Joldoshbayev, became its new owner. Joldoshbayev was close to Akayev. The workers of the coalmine seem to have grounds for complains, as they used to work in bad conditions for a scanty salary, and were not even immune from violence: they claim they were not seldom beaten at work. On June 6, workers at Kara-Keche under the leadership of a local politician, Nurlan Motuyev, seized the offices of the companies “Besh Sari”, “Akzhol” and “Shabdan”, who were handling coal extraction at this largest coalmine in the country. They demanded that Joldoshbayev’s ownership be cancelled and that instead a new company be formed from the old three. Of its shares, 49 % should then belong to the workers, and 51% to the state. And they demanded that 70 % of the new company’s profits would go to them, and only 30% to the state. The workers considered their demands to be well founded. They wanted to receive compensation for their pitiable life during the past 14 years. They had no choice but to work there without a legal contract and to be content with small and irregularly paid salaries, the workers say. It is very difficult to find a job in small towns and villages in Kyrgyzstan. But Kara-Keche wasn’t only occupied by its workers. Self-appointed “revolutionaries” from nearby villages arrived also at the site to help the employees (and perhaps to profit themselves from this redistribution of property). It was feared that disruptions of work there could lead to an increase of coal prices and an insufficient availability of coal for the winter period. Attempts to regulate the conflict were not successful. On 15 June, a parliamentary commission – including Joldoshbayev – was driven away by stones. (The workers say they were being shot at by thugs that Joldoshbayev brought with him). According to Joldoshbayev, the workers are ruled from Bishkek. Motuyev, for his part, was reported as saying that he had no connection to the initial seizing of the coalmine. He just agreed, on the worker’s request, to lead their action further. The incident at Kara-Keche doesn’t stand on its own. Everywhere, it seems, privatizations concluded during Akayev’s reign are now being questioned. Workers at the goldmine of Kumtor – that is now completely in Canadian hands – also demand the enterprise be returned to Kyrgyz ownership.

IMPLICATIONS: Whatever the reasons of locals might be when questioning privatizations – greed or a genuine strive to correct past injustices – one consequence of their actions is very clear. Foreign investors are afraid of the current situation in Kyrgyzstan where nobody seems to be in control and regard for the law is flimsy. They now prefer to wait with making further investments in the country. According to a June 2005 Investor Survey by the International Business Council – an organization representing Kyrgyz and foreign investors – no changes for the better are to be expected for the economy or investments. According to the survey, investor expectations about economic conditions and the investment climate severely worsened during the last six months. Apart from instability in the country, investors worry about government investigations into corruption during the reign of Akayev. Some believe the investigations haven’t always been independent or fair, targeting also “clean” businesses that had links with Akayev. (Yet during Akayev’s tenure it was all but impossible to do business without being on good terms with the president) Nevertheless, the authorities intend to investigate all claims about illegal property privatization during Akayev\'s presidency. With regard to the coalmine seizure at Kara-Keche, the government made a surprise decision. It appears to have agreed to appoint Nurlan Motuyev to the post of director of the new coalmine enterprise. The structure of the new company, and the divisions of its profits, will apparently be as the workers demanded. There are several possible explanations for this appointment. The first might be that the government lacks any power to fight against the seizure of the coalmine and had no wish to make the situation worse before the presidential elections of 10 July – and therefore accepted the workers’ terms. Another version is that Motuyev (who claims to have made “revolution” together with today’s rulers of the country) and his men were supported in their attempt to seize and redistribute the coalmine. Akayev’s old ally, Joldoshbayev, conveniently has been left empty-handed as a result. That businesses can apparently be taken from their lawful owners by force makes investors feel insecure. Many foreign businessmen prefer to wait with further investments until after the presidential elections. Then, they hope, it will be clearer what will follow in the country. How the situation at Kumtor develops will be especially important because here, foreign investors are concerned – not local ones as at Kara-Keche.

CONCLUSIONS: The Kara-Keche incident is another demonstration of the instability and lawlessness in Kyrgyzstan. Many people who have the chance seem to try to profit from the general chaos. Workers such as those as Kara-Keche seem to have good reasons to be dissatisfied. But local politicians, shady businessmen and would-be revolutionaries might easily make use of the chaotic situation. That possessions can be redistributed by force and not by law is a an ominous development. The new authorities might, in this way, hand property from old allies of Akayev to their own allies. Besides, such incidents damage the country\'s reputation and make foreign and local businessmen less willing to invest in Kyrgyzstan, which risks worsening the ongoing economic decline in Kyrgyzstan.

AUTHOR’S BIO: Zoya Pylenko is a Bishkek-based freelance writer, a contributor among other to ISN Security Watch.