Helicopters stumbling. Misfortunes of a foreign investor in Kyrgyzstan

In search of the truth, the representative of the foreign company named Al Amyal Aviation Services FZE appeals to the courts of Kyrgyzstan for the fifth time. Litigation has been lasting since 2014. An investor has not been able to obtain justice from the Kyrgyz Themis for five years.

Down and Out trouble started

Al Amyal Aviation Services FZE (head office in Sharjah, UAE) entered the Kyrgyz market in 2009. Its leader, a Russian citizen Viktor Bengard, decided to invest in the Kyrgyz Republic: he opened a joint venture in the FEZ “Bishkek” – a branch of the Novosibirsk helicopter repair plant. A foreign entrepreneur has invested hundreds of thousands of dollars in the construction of a base. Hangars were built at the SEZ, the necessary equipment and turntables were brought into the country.

The unstable situation in the country did not scare away the foreign investor, he did not turn aside the matter, as many did after April 7, 2010, and continued to invest in the construction of the only and unique repair air base in the Kyrgyz Republic.

In addition, during the tragic June events of 2010, Al Amyal Aviation provided three helicopters and two aircraft for the transfer of forces to the south of the country and the transportation of goods, including humanitarian aid. I persuaded my Canadian partners to hand over humanitarian aid in the form of medicines worth over US $ 500 thousand to the Ministry of Emergencies of Kyrgyzstan.

In 2011, Al Amyal Aviation received licenses from Russian Helicopters holding and the Moscow Mil Helicopter Plant Moscow Design Bureau (KB Mil). The Russia’s Ministry of Defense provided with a license. But in 2012, there was the beginning of trouble for a foreigner, his misadventures and litigation with Kyrgyz state authorities began.

Conflict history

In January 2011, Al Amyal Aviation leases a helicopter from the state-owned enterprise Aviation Enterprise under the Ministry of Emergencies of the Kyrgyz Republic. The helicopter was presented to the Kyrgyz rescue service by the Russian authorities as part of the provision of technical assistance in 2006. Two years later, they began to lease it.

The helicopter, along with the crew plus maintenance, is delivered to Al Amyal Aviation for a year. The state enterprise under the Ministry of Emergencies estimates services at $ 2 thousand every flight hour.

Under the contract, all repair work, as well as the salary of the crew members – employees of the Aviation Enterprise SE is covered by the rent.

The company regularly pays, of which all relevant documents are available, but the GP does not provide maintenance. As a result, one of the engines fails. Naturally, a helicopter cannot fly. But contractual obligations must be fulfilled.

In February 2011, the management of the Aviation Enterprise State Enterprise under the Ministry of Emergencies of the Kyrgyz Republic wrote a letter to Victor Bengard and asked him to provide an engine for rent. Al Amyal Aviation provided the TVZ-117 engine after overhaul and with a long calendar term and resource. Services were valued at US $ 400 for each flight hour.

Debt good turn deserves another

The Ministry of Emergencies refused to pay by offsetting, having drawn up an additional contract for the rental of the engine. It turned out that every month Al Amyal Aviation transferred to the Aviation Enterprise of the Ministry of Emergencies of the Kyrgyz Republic $ 2 thousand for each flight hour, which in turn had to transfer US $ 400 to the company’s account. However, while the foreigner regularly replenished the GP account, officials from the Ministry of Emergencies were in no hurry to pay for the rental of the engine.

And in November 2011, the deputies seized on the helicopter and ordered the Ministry of Emergency Situations to return the helicopter. The helicopter was taken away from Victor Bengard, and the debt to pay for the engine was not in a hurry.

The amount ran a decent – US $ 151 thousand. And this is without loss of profit, because the helicopter was returned to the lessor ahead of schedule. If we add all the calculations, then the figure will be fabulous. In addition, the engine has been arrested since 2015 and it remains with the Ministry of Emergencies. However, the head of Al Amyal Aviation does not insist on full compensation for the damage, he only asks to pay him for the rental of the engine and return it to its rightful owner. Repeated appeals to the management of the state-owned enterprise did not produce results. The directors in the state enterprise are changing, but the issue is still not being resolved. Requests to pay the debt in the department were ignored. I had to go to court.

In order to further cloud the matter, the Ministry of Emergencies filed a counterclaim against the company with absolutely absurd demands – to pay for the rental of the helicopter, including the time when it had already been returned to the department at the request of deputies of the Kyrgyz Parliament. And the court takes the side of the state agency, while making a decision not in favor of the investor.

Lifetime Litigation

In Kyrgyzstan, from high tribunes, it is constantly said that protecting the interests of foreign investors is a priority. In fact, the majority of representatives of foreign companies cannot achieve the truth in Kyrgyz courts.

So the courts of Viktor Bengard last for several years. Under various pretexts, red tape is created, meetings are postponed, the composition of judges is changed, and as a result, a decision is made not in favor of the foreigner.

Although all the documents confirming the correctness of the entrepreneur are. The court simply ignores them.

The company suggests that the country has established an unspoken rule: to make decisions in all cases against state-owned companies in their favor. Otherwise, how to explain the silence of the supervising government agencies to the numerous appeals of Victor Bengard? The foreign investor has remained unheard.

Moreover, by decision of the courts, four helicopters of Al Amyal Aviation were arrested, the cost of which is estimated from US $ 1.5 million to US $ 3.6 million. When both the amount of litigation and the amount of arrest are not comparable. The joint venture is virtually blocked. A unique enterprise that could pay hundreds of thousands of Kyrgyz som in taxes to the treasury is idle today due to litigation.

Victor Bengard is preparing a new lawsuit. Will he be able to reach a fair solution this time?

Source – https://24.kg/

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