Ministry of Economic Development and Trade of the Kyrgyz Republic

1. Ministry of Economic Development and Trade of the Kyrgyz Republic «…It is necessary to reduce the number of governmental bodies, that are involved in control of economic activity and restrict the number of entrepreneurs inspections…» Bakiev K. S. – President of the KRStatement on 01.09.2009 г.

2. On the implementation by State controlling bodies the Law “On audit” and the Presidential Decree "On measures to improve the inspection procedures of the business entities" Ministry of Economic Development and Trade of the Kyrgyz Republic Reform in the inspections procedure of the business enteties

3. For the implementation purposeof the Law “On audit” and the Presidential Decree "On measures to improve the inspections procedure…" • The necessary regulatory framework isapproved (station on the inspections procedure, instructions of 20 SCB, rules for assignment and registration of the appointment of business entities inspections) • Is worked out and implemented an automated program for inspections of business entities Counter-Pro (installed in 20 central apparatus of GKB, 53 territorial units of SCBin Bishkek and Osh) • In the course of three years is reduced the number of inspections (with a moratorium in 2007) for more than40% (SCB inspections, except SCTF)

4. Installation of Counter-Pro: pilot project (Bishkek, Osh) COUNTER-PRO 20central agencies of SC 17 territorial units of SCA in Bishkek 36 territorial units of SCA in Osh Data base consists> 8000 business entities

5. Proposed improvement on COUNTER-PRO activity 3 Inspections plan Inspections plan 2 MEDT SCA Inspections plan 1 on-line coordination MEDT web site on-line coordination

6. Frequency of inspections depend on risks level… Large enterprises3-4 times a year High Business entities small medium Small entities1 time in 5 year Medium enterprises 1 times a year

7. Structure of the state controlling agencies : acting and proposed to reduce (45%) State controlling agencies State Committee of Architecture and Building 1 State com on tax and fees State Tax Committee 2 State veterinary department 11 State antimonopoly 3 Precious metals department 12 Stateforestprotection 4 Labour inspection department 13 Financial supervision 5 State inspection on plant quarantine 14 6 State inspection on subsoil use 15 State inspection on energy and gas Department of sanitary supervision 7 16 Kyrgyz transport inspection 8 Statefire and rescue dep State department on regulation of fuel and energy complex 17 State inspection on supervision of industry secure and mountain supervision 9 National agency on communication 18 State alcohol inspection 19 10 Department of drug provision Social fund 20

8. Proposedinspections scheme Monitoring and coordination of Inspections MEDT Prosecutor General's Office SCTF Chamber of Accounts Financial police Law enforcement bodies SCA, according to the list (JK KR Decree) INTEGRATED ACCOUNTING OF BUSINESS ENTITIES INSPECTIONS

9. For successful continuation of the ongoing reforms in the inspections field the following problemsshould be immediately solved • Accelerating the work on revision of the list of controling bodies entitled to inspect, approved by Parliament of the Kyrgyz Republic. Exepting duplicate regulatory authorities and by adding tax and law enforcement agencies on the results of the analysis and take into account in the forthcoming public administration reform; • Accelerating the adoption of the law providing risk criterion and mandatory inspections registration in the prosecutor's office • Ensuring full realization of the law “on inspections by the regional units of controlling bodies”

10. Thank you very much!