News
Date:
26 August 2010
Update on freezing order over kazakhaltyn's bank accountsFurther to recent announcements by KazakhGold Group Limited ("KazakhGold" or "the Company") in relation to a freezing order that had been placed by the Agency on Economic and Corruption-Related Crimes ("AECC") in Kazakhstan over certain bank accounts held in Kazakhstan by the Company's main operating subsidiary, JSC Kazakhaltyn MMC ("Kazakhaltyn"), the final appeal by Kazakhaltyn to lift the freezing order was yesterday refused at a court hearing in Kazakhstan, and, as a result, the freezing order remains in place. As previously disclosed, Kazakhaltyn has received express permission from the AECC to access funds in the frozen accounts in order to make wage payments to its employees and pay taxes and other payments to municipal authorities in order to avoid social tensions among the workforce, and the AECC has permitted the payment from the frozen accounts of certain other operating expenses that are necessary for the continuation of Kazahaltyn's operations. Kazakhaltyn is continuing to cooperate with the AECC in order to seek to ensure that such payments can be made on a timely basis so as to minimise the impact on its operations. While access to the funds in the frozen accounts continues to be subject to the sole discretion of the AECC, there remains the risk of unexpected disruption to Kazakhaltyn's operations. Enquiries:
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