English
RussianI get asked quite often how I met Nurgazy Nurgaziev.
Way back in 2008, a contact of mine introduced me to Mr. T. He was Nurgazy’s school mate. Mr. T mentioned that Nurgazy owned a bakery business and would be interested to discuss potential investment opportunities. I was curious to learn more about his business and a meeting was arranged. Few days later I met Nurgazy.
Later Nurgazy introduced me to his business partner Mr. A. Nurgazy and Mr. A owned Namali, a factory based in Novopokrovka. They established Namali in 2005. Namali produced baked goods. They started small, from humble beginnings, and gradually grew their business. Business was doing well when I met them. Sales and profits were increasing.
I explained that I represented an investment fund and we were looking into possible investment opportunities in Kyrgyzstan. Nurgazy mentioned that they were interested in buying a candy making machine for €50,000 and needed funding. He suggested investing in the machine together with them and sharing profits. I told him that we do not invest in equipment on a profit share basis. We invest in businesses and become a shareholder.
They had not thought of this option but were open to consider the possibility. I requested financial information, which they provided.
It is no secret that Kyrgyzstan has a large shadow economy. Not all businesses are in full legal compliance. They do not pay all the taxes. As I suspected, Namali was no different. This was a serious issue for us. We could not invest in businesses that are not in full legal compliance. It is a risk. Furthermore, our plan was to invest in businesses and then introduce the business to foreign partners and investors, to help them to grow further. We cannot introduce non-compliant businesses to foreign partners.
I brought this to Nurgazy’s attention and explained why it was an issue for us. He understood and said “I want to follow all laws and pay all taxes.” “I want to do everything officially.” “I want to work with the best auditors.”
Note: A criminal case is currently open. These are two most recent letters I received from the prosecutor.
Opening of Criminal Case March 2018
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