Government to include in parliament draft law on financial statement, providing criminal responsibility of financial institutes` chiefs

/INTERFAX-KAZAKHSTAN, Astana, June 28, 08/ - On Saturday, Kazakhstan government examined the bill on financial statement and decided to include this document in parliament on meeting in Astana, correspondent of Interfax- Kazakhstan agency informed. "The main objectives of the document are improvement of mechanism of preventive risks revelation of financial system, introducing criminal responsibility of major participants of financial organizations, and expanding competence of authorized body in case of default on demands on improvement of financial condition by shareholders of financial organizations" - Elena Bahmutova, the head of AFS said, presenting the bill. According to Bahmutova, introducing of criminal responsibility is provided in relation of "major participants of financial organizations, first chief (major participant or person, who permanently, temporary either on special authorities substituting managing body) for deliberate act or failure lead to insolvency and carried to force liquidation of insurance organization, accumulated pension fund or bank". For this malefaction, E. Bahmutova noted, the bill provides "penalty in amount from 3 to 6 th. MCI or in amount of salary or other income of condemned for the period from 6 months to 1 year, either arrest from 3 to 6 months term, either imprisonment from 1 to 3 years term with penalty". MCI - monthly calculated indicator, 1 MCI in Kazakhstan makes KZT1168 (current - 120.75/$1). Besides, according to the head of AFS, in the draft law is fixed the right of government "to decide on purchasing declared bank's shares by national managing company in amount of not less than 10% from total amount in case of worsening conditions of financial organization, revealed in violation of prudent norms and other liabilities of abidance by limit rules". The thing is about violation of capital adequacy and liquidity indicator and also double violation of other norms" - E. Bahmutova explained. "This mechanism is implemented for prevention of system crisis worsening. (...) There are situations, when bank's condition is worsening, but current shareholders cant or don't want to do something. In this case, flowing in of new capital is demanded for bank's overcoming crisis situation and retaining trust to system and investors defending" - she added. [2008-06-30]