The State Committee for National Security uncovered schemes for reselling social coal at inflated prices

The State Committee for National Security has uncovered a number of schemes involving the illegal export and resale of coal intended for social fuel bases to commercial outlets at significantly inflated prices.

According to the SCNS, the actions of those involved lead to an artificial shortage of coal at social bases, which, in turn, provokes an increase in demand, higher fuel costs and discontent among the population during the heating season.

SCNS specialists have identified two main mechanisms of fraud:

Collusion between transporters and owners of social bases.

Owners of private heavy-duty vehicles, receiving powers of attorney from individual entrepreneurs — operators of social fuel bases — are given priority for loading coal at the Kara-Keche open-pit mine. However, upon arrival in Bishkek, they do not deliver the fuel to its destination, but unload it at commercial outlets, where coal is sold at inflated prices. As a result, social bases are formally operating, but the actual volumes of supplies to them remain minimal and irregular.

Resale of coal by social base owners.

Some entrepreneurs who receive coal at a preferential price for the population take part of the supplies to their own commercial sites. There, they sell the fuel at a higher price or sort and package high-quality coal for retail sale with the maximum mark-up.

The GKNB reports that operational and investigative measures are continuing to crack down on such schemes and identify all persons involved in the illegal resale of social coal.