 Kazakh construction executives accused of theft Reuters, 16.02.2009  ALMATY, Feb 16 (Reuters) - Kazakhstan's financial police accused the top managers of the country's leading construction firm of large-scale theft on Monday, signalling that banks that financed the crisis-hit sector could face fresh losses.KUAT, a key player in Kazakhstan's long-booming presold apartments market, is a large borrower from Kazakhstan's top two banks BTA BTAS.KZ and Kazkommertsbank (KKGByq.L). A spokeswoman for the financial police said they had launched a criminal case against a number of KUAT executives, but declined to name them or provide any other details. KUAT declined to comment. A message on the company's website www.kuat.kz said the page had been shut down because of the company's failure to pay for hosting services. BTA and Kazkommertsbank also declined to comment. Like many other companies, KUAT had borrowed heavily to finance its residential and commercial construction projects before the financial crisis hit Central Asia's biggest economy. Prices have nearly halved since then in key cities, and demand for newly built property has dwindled, leaving the construction companies short of cash. (Reporting by Masha Gordeyeva; Writing by Olzhas Auyezov; Editing by Rupert Winchester) |
