The friend is among the foes.

Kairat Zhumanov

The appointment of Serik Burkitbaev a president of KazMunaiGas baffled everyone.

Maybe, it was the most unexpected and scandalous event in the series of appointments of the presidents of KMG after the appointment of 28 year old Nurlan Kapparov in 1998. Judging from the Internet material to say the least, the person with quite ambiguous reputation has come to run the oil sector which is more or less free from control though the foes cannot be found “there”.
In whole, judging from the comments, we can single out several basic debatable lines around the figure of our hero.
1. Burkitbaev has come to KazMunaiGas after quite clear statements of Prime Minister Masimov about the probability of changing legal control of the oil sector not in benefit of foreign investors. The task was given to him to change the strategic positions of KazMunaiGas with a view to expansion of the government’s presence to all appearances. All these things are evident within the general trend of building the state capitalism.
2. The appointment was followed by the mass step-down of the top-managers, who were considered a creation of Timur Kulibaev. There were rumors that Timur Askarovich intended to give quite “weighed” interview about his activity as a president in the association KazEnergy. It is either postponed or not held at all to all appearances. It wouldn’t be so important, if the we talked about the quite evident publicity of the figure, heading almost the social oil organization in principle, but Mr. Kulibaev was always distinguished with striking and even excessive modesty.
3. Burkitbaev is the finding of Kazhegeldin which as a rule is already a serious omission of itself. At that, he is quite frequently mentioned as a person who has close ties with Subhanberdin and Kulibaev. At that, he managed to save his self-dependence, to come unscathed out of the series of juicy scandals and continues to be considered one of the most perspective top-managers of the country and one more probable successor of Masimov.

And now-disco!
The inauguration of new president of KMG itself passed quite dramatically to all appearances. After the standard procedure of the exchange with the words of courtesy and assurance in saving the succession from the side of the coming to the leaving manager, Karabalin, generously called the premier of the “oil-and-gas champion” not only in Kazakhstan, but also on the whole Eurasian territory considered necessary to add: “That today in telephone talk with the Head of State Nazarbaev “has also evaluated our work, which was done within these years. I want to share it with you, because it was achieved not by one person, but by the whole staff”.
http://posit.kz

As it turned out, “the anonymous public” has always treated the changes in the professional career of Serik Minavarovich in a quite anxious way. Here are the some comments, which appeared in the net after his resignation from the position of Minister of Transport and Communications.

The Westernizer: Is the person known by everyone returning? Probably, such parts of staff movements aren’t made in vain. The major thing is that we, free citizens, lived in comfort, safely with the reservation of all rights and liberties. The other things are the business of the capitalists.
In what matters will he be an advise?
The former prosecutor: It means that they decided to bury someone…probably the instigators of KazSat… or they will run down Kazakhtelecom or “Kazpochta” strongly…In any way it is the interesting reshuffle.
The gaper: Under Burkitbaev they did only dull things in the Ministry of Transport and Communications and KTZ, KTelekom, AIR K3 did what they wanted.
Poultry man: mmmmm-yesssss…….The bird-talker is again on the horizon…
http://www.megapolis.kz

As it turned out, there are no “former prosecutors”. His forecast about burying Kazsat has come true. It is true that it happened in some unexpected interpretation. Burkitbaev has demonstrated his categoricity, which isn’t built into him at all, namely, on this issue: The country doesn’t need KazSat.
“It put me in a bad mood when I began thinking what he can give us not only in the political but also in the economic and technological view”.
I don’t know what information the government has got, but the friendly survey of all the largest TV and Communication operators show that it doesn’t fit them.
It seems that, one could go to such costs for the sake of solving the strategic task of creating your own field, entering the club of cosmic States, which have the appropriate technologies. But another economic question arises here. If you buy the luxurious car, then you should understand that you need a lot of means to keep this car in working condition. You should drive this car in appropriate clothes; it must stand near the appropriate house. We want to say that this game is very risky because of its possible consequences.
… We buy “Zaporozhets” for the price of “Mercedes”.
I think that it would be impossible to transfer the TV-Sat of direct broadcasting “Katelko” to this Satellite physically, because those thousands of private subscribers, who has antennas with diameter of 60 centimeter today, will have to put 2 meter antennas because of the available capacity. The systems used for providing the national security of the country cannot be moved to KazSat either…
Yes, the political effect is perfect today and we could say: blow the expense of 60 million dollars if the political effect were worked off, but Russia is too important strategic partner in any plan, to compromise these relations. There are beautiful public relations, in general, everybody responds positively until the Satellite is launched. But after speaking with the specialists for a day or two, I understood that the technical elite in the country, CIS and in the world really keep an eye on the processes. They just laugh at us… Nobody would say it openly, but I assure you that you will find no specialist who wouldn’t ask in private talks: “What are you doing?!”
Don’t we have any other projects in which Kazakhstan is strong and prospective under some definite factors? Do trust me, I watch the tendencies in economy quite closely and our Institute is engaged in evaluating the volume of oil and gas extraction. Thank goodness, we will have much money. But much as compared to what? Much as compared to what we had 5 years ago, when we were just coming out of a recession. This is the situation. Much as compared to what the Kazakhstan produced when it was the part of USSR? No. Or will we earn so much to develop space programs of such scale and become one of the Space States? We don’t have so much money and we wouldn’t have such amount. That is, we should understand clearly: that not everyone can handle with the space program of full value. My wife can buy the washing machine of the latest model too, but then her whole kitchen business would finish.
There haven’t so many comments to any article on the site “Megapolis” as to this one. The opinions are different. “Bravo, Serik Minavarovich! We should have done it earlier!”, “Our comrade just drivels. They are nearly scientific expressions hip to the pragmatic rationalism.” “It is urgent to test all the officials for knowledge of high education”, “If only we had so many specialists in the government as Serik Minavarovich. I had a luck to work under his administration several years ago-he is really good Director. He is competent, talented and energetic. Bravo, Serik!”. It is clear that taste and colour is a good reason for fighting. Here is the verdict of some Nesmeyan (the man who doesn’t laugh) like the graveside oration: “I want to cry. Some dull material has split the nation into two parts: one part is in for Satellite, others are against it. At that, we can count the specialists in the field of Space on one hand and citations from the books are not included. PEOPLE!!!ENOUGH!!! It is not article, but provocation. Don’t you understand?!”.
Indeed, one hand was enough to count the specialists. The author has shown only those comments, which came to the site from the IP-addresses of the companies and organizations working in the telecommunication sector; for instance, the following comments were taken from the Kazakshtan’s Int-Sat or the Russian Altegro SKY:
The astronaut: “Unfortunately, I must admit that “the ideas aloud” of Mr. Burkitbaev weren’t heard by those people for whom they were meant. I know that they gave the project of the first Kazakhstan’s Satellite to the firm of Hrunichev, the firm which had never created the telecommunication space tools, to save it’s almost bankruptcy. Knowing the most of the firm’s workers, I must state that these “first steps” cannot claim to the modern telecommunication decisions for the KA communications by any means. But we have money and desire to become Space State despite anything… we have begun quickly. We threw and continue throwing oodles of money into doubtful projects of Russians, which are supported by the people, who don’t even understand the problems of cosmonautics, but appointed by the government to keep the “purity” of the budget streams, flowing into their pockets.
The aerospace committee of the Ministry of Education and Science of RK has responded in absolutely predictable way. It disproved all the arguments of ex-president of Kazakhtelecom in details.
However the debates still continue
Patriot: Burkitbaev has long been on the wayside of the political life. Nobody admits and obeys him now. That’s why he is so furious. He is real zombie. He is ready to find fault with anything in the world including the great achievements of his country for the sake of good word. I wouldn’t be surprised, if the new figure, offended with the fact that he wasn’t given a good position, appears in the opposition in the near future. He needs to deserve it and not to talk nonsense.
Alga Kazakhstan! Long live Nursultan!
Paul Lich: Serik Burkitbaev didn’t obtain diplomas for money. Let me announce it to you with all responsibility. If only we had so many specialists in the government as Serik Minavarovich. I had a luck to work under his administration several years ago-he is really good Director. He is competent, talented and energetic. Bravo, Serik!
I remember that at that time there was an old belief among the people-that the longer president is on a holiday, the more guaranteed that the officials would lose their positions. The formal reason of the http://kazhegeldin.addr.com resignation of Minister of Transport and Communications Serik Burkitbaev was caused by the inspection of the road Almaty-Astana by Nursultan Abishevich. Now already former Chairman of the Board of National Bank Karim Masimov came to his place as a new Minister.
After the eulogies against Masimov the author changes his mind and reminds: “We should note that Mr. Masimov is related to so-called group of Timur Kulibaev and cooperates with Kazkommercbank quite closely. But Serik Burkitbaev is related to this group as well. The latter changed his scientific laboratory with the official’s uniform in the mid of 90s. With the help of deputy of the president’s administration, and then vice-premier Imangali Tasmagambetov, who controlled the Communication, Mr. Burkitbaev makes a career by leaps and bounds. The Communication system “Nursat” is launched with his initiative and active participation, and “Kazakhtelecom”, which is headed by him, becomes the strongest monopolist in republic. Serik Burkitbaev, who replaced Yerkin Kaliev (one of the representatives of “new Kazakhs”) in the position of Minister of Transport and Communications, pays great attention not to the key industries(aviation, rail and motor transport), but to the adoption of the modern informational systems. In general, it is understandable, since Mr. Burkitbaev is Doctor of physic-mathematical sciences and adoption of the new technologies makes up his sphere of scientific interests. However, the wicked tongues has begun rumoring that under pretext of the adoption of informational systems, Mr. Burkitbaev began poking his nose into affairs, the way to which has already been ordered. For instance, he poked his nose into oil and gas sector.(by the way, it is also indicated by observer of the newspaper “The new generation” Sergei Volkov in his comments about resignation of Serik Burkitbaev). Maybe, it is true. We would just try to say the version that he just stopped to satisfy those people who had nominated him, or the failures in the sector, which is under his control, are evident. In includes the crisis in aviation and bad highways (The highway Almaty-Astana, which is being built, can serve as an example) and many other things. At that, it is interesting that recently Kazakommercbank has brought in an action against National carrier “Air Kazakhstan” since the company doesn’t return credit taken from bank. The observers consider that the following interest stands behind this action: that is to bring to the bankruptcy and then privatize the company.
In august of 2000 “Navigator” published a series of quite detailed publications about “the violation of the State interests by ex-minister of Transport and Communications Serik Burkitbaev during his stay as a president of JSC “Kazakhtelecom”. At that, ex-premier of Kazakhstan’s government Mr. Kazhegeldin was called his “ideological inspirer”.
Mr. Tihonov, the retired colonel, stood up for Serik Munavarovich. He tried to shame the author and said that Burkitbaev is a victim of intrigues. As a result, the paper burst out with one more crushing article containing such particular details that its “non accidental” feature has become more evident. At that, perhaps such “awareness” is connected with the fact that investigation works by the city prosecutors’ office of Almaty on this issue were under way at this period.
Particularly, we can conclude the following from reply:
1. Nursat used uncertified foreign equipment while serving the governmental lines during the times of Burkitbaev which means that there was high probability of unauthorized access and crippling the electronic control systems. At that, it is emphasized that nobody asked question “Why?” when the agreement between KNB of RK and JSC “Kazinformtelecom (private company) about the joint activity was signed and later when JSC “Kazinformtelecom” and the line of other private and foreign companies established “Nursat”. Perhaps, the initiator and the administrator of these private companies was namely, Mr. Burkitbaev.
2.The general dynamics of the change of Kazakhtelecom’s financial condition was led to the following: During the period from 1996 to 1998 the incomes of the company fell and the expenses increased considerably.
“According to the budget of JSC “Kazakhtelecom” for 1998 made jointly with the specialists of DAEWOO, the deficit of the company’s assets has made up more than 9 billion tenges with the income of the whole company about 23 billion and expenses about 32 billion tenges. In a traditional deficiency of the 30-40% of income by the company, the deficit should have increased up to 15-18 billion tenges”. The attempts of “smoke curtain” in the form of Eurobonds and various credits weren’t successful and this version of budget was laid on the shelf.
3.The obtainment of the stakes from the lines of profitable joint ventures by Kazakhtelecom led to their artificial destruction for the benefit of “Nursat” and “Kazinformtelecom”. In such way, the relations with the largest international telecommunication companies “Deuthcetelecom” and “Telstroy” were spoiled. They were directed to obtain the joint ventures “Dekatel” (“Kazakhtelecom”-Deteline, Germany) fully.
4. The collapse of some joint ventures affected the growth of the traffic and the incomes of JSC “Nursat” accordingly. “Nursat” had and has got the direct access to the net of telecommunications of general usage (NTGU) of JSC “Kazakhtelecom” except the Satellite access for realizing the international traffic, which is the gross violation of “The regulation about connecting the operators to NTGU”. According to this regulation, no operator having access to the international traffic has right for the connection to NTGU. At the present time, “Nursat” has the privileged conditions of connection to NTGU in all characteristics as compared with other operators (including the financial conditions as well).
5.The Corporation DAEWOO, which obtained 40% of the voting shares of Kazakhtelecom and took the responsibility of investing $1bn, was seeking the chances of leaving “Kazakhtelecom” already in January of 1998. By that time DAEWOO has managed to deliver its equipment and cars to “Kazakhtelecom” for several million dollars which were overpriced and of doubtful quality. The Korean telephone exchanges installed in “Kazakhtelecom” haven’t certificates of quality to the moment of their installation. Besides, these telephone exchanges had difficulty (problem) with the attachment to the existing equipment since they weren’t adapted to our conditions. Most of these exchanges don’t work properly now. The costs, made for their purchase were included into the charge rates of “Kazakhtelecom” for the services of communication. The automobiles of DAEWOO Damas cost “Kazakhtelecom” 8000 US dollars each and total 1 100 000 US dollars. The Corporation DAEWOO made discounts in case of such wholesale purchase of cars (300 cars) naturally but it didn’t effect the shown prices in a strange way.
In august of 1997 the fettering for “Kazakhtelecom” agreement about maintenance services was concluded between “Kazakhtelecom” and DAEWOO. According to this agreement the workers of DAEWOO received 2 million dollars except their salaries that is 200-250 thousand US dollars for each foreign worker without considering the heavy expenses bore by Kazakhtelecom for their accommodation and business trips. At that, the money was paid for the absent workers as well. And what is even interesting here except everything is that it was indicated: “that DAEWOO would grant the necessary services including the political and practical activity…”
The Corporation DAEWOO sold its shares in February of 1998 without fulfillment of its investment obligations. In march, the president of Kazakhtelecom already had the formal company register of JSC “Kazakhtelecom” in which there wasn’t corporation DAEWOO, but two new shareholders S.Burkitbaev and N. Barelko appeared there (assistant to the president).
6. Since the production activity of “Kazakhtelecom” is controlled by JSC “Intel”, the basic data warehouse about the nets of communications and operator of their integration in the World’s net, the State holding of stock of JSC “Intel” was sold to “Tokom”, earlier not well-known company on the telecommunication market and headed by the relative of Mr. Burkitbaev according to rumors, for 60 million tenges in a quite inexplicable way because the actual price of the holding is four times expensive than this price.
7. It is somewhat shameful to remind of such small things as the payment for the banquet of birthday of Serik Minavarovich (when he was 40) at the expense of National Company on the background of such rollovers.
It is notable that the open letter where the activity of Mr. Burkitbaev is evaluated in the same interpretation, sent to the Chairman of Security Council Sarsenbaev A.S., the deputy of Chairman of KNB Aliev R.M., the first vice-premier Ahmetov D.K. and finally the Minister of Transport and Communications Masimov K.K. was ignored by all of them.
One of the special ominous episodes from this letter: “Most of the people remember the event that took place in 1994. Then foreign telecommunication equipment was installed in the Almaty residence of president. And immediately after the closed conference of Nursultan Abishevich, Boris Yeltshin has called him by asking the questions from non-public subject and asked why he tells the whole world about it? The situation was shocking. It turned out that there was a tapping device in the imported equipment. The device has been changed with the equipment of Russian production within days which had been proposed by ex-director of “Alteby” (“Almatytelecom”) Adebiat Satekov”. By the way, according to author, the scandal with MIGs has gone public namely because of the following reason-the possibilities of unauthorized access to State lines of Communication.
“There were times when Serik Minavarovich said that the age of professionals had passed and now it was the age of managers. Nursultan Abishevich considered necessary to correct him and others thinking in that way by saying that it is time for professionals”.
http://www.b-m.narod.ru

In general it is not the first time when the net is disturbed by the reshuffle “Burkitbaev-Masimov”. After the resignation of Burkitbaev from the position of Minister, it was filled with the forecasts and versions that “two daughters of Serik Minavarovich have already got the permanent residence in USA. …That divorce with his wife is fictitious and that she would join her daughters after her defense in Moscow…. That Serik Minavarovich himself is absorbed in thoughts: either to go to Rome to head the department or to go to Belgium or London to his sub worker, old friend Kazhegeldin, or not to care all the intrigues and join the family”.
“It can be thought that Mr. Kazhegeldin has managed to create almost the double-government by using Serik Minavarovich (let’s remember his global projects of the age about joining oil and gas pipeline to his field as well). He managed to create the double who controlled air, rail, motor, river, sea transports, roads, telecommunications, “Intel”, The post service, Internet, billing-center with special functions.. But Karim Masimov is a beginner in these fields…”.
And here is an almost pearl: “The power-is not only the soft chair but also the disease sitting on it. It is the disease which is incurable. People live for power, they struggle for obtaining its sweetness, and at least they share it. In general, they put it on the fire…
And nobody says: “I don’t have strength to be on the watch any more…”
Insertion http://www.zonakz.net

The defenders of Serik Burkitbaev are found
The chairs of the members and Directors of the government-are not school desks.
Not long ago, the deputy of Madjlis Serik Konakbaev enquired why Mr. Burkitbaev, being the president of the National Company “Kazakhtelecom” had received money reward for consultation of his own company in sum of several hundred thousand dollars. The deputy hasn’t got a clear reply yet. But the newspaper “The business observation of Republic???” decided to defend ex-minister of transport and communications Serik Burkitbaev. After resignation of Serik Minavarovich, a message passed saying that he was appointed an adviser to President, but he is going to USA on a business trip for giving the lectures. And now Serik Minavarovich has returned.(evidently, the enquiry of Serik Konakbaev is connected with this time factor). Dulat Musataev writes about the appointment of Burkitbaev because of some reason, but the interesting thing isn’t the inaccuracy but one passage, which can be brought as an example: “Perhaps, that unkind criticism against the Prim-Minister which Mr. Burkitbaev afforded to make before his departure to USA is not forgotten in Astana and will remind the new adviser to president of itself. The fact that criticism was hard is doubtless. At that time, ex-minister said right and surprisingly open reproaches against his colleagues”.
http://www.nomad.su

In general, he is Mefistofeles, not Serik Minavarovich. The only way of solution for the new director of Kazmunaigas with such “inherited reputation” would be maximum transparency. No, most probably it would be the-publicity. These are two different things. Probably, the key for understanding the situation is hidden in next citation: “I was tricked by Kazhegeldin together with Nazarbaev”. It was said when he was still in the position of Prime-Minister”.

“The news time” writes that” according to observers, the new president of the company has close ties with the present trustee of Nazarbaev Kayrat Kelimbetov who has been appointed a Head of the administration of the Head of State recently”. http://www.b-m.narod.ru
http://zonakz.net