From: Justin Burke (JBurke@sorosny.org)
Date: Mon Oct 29 2001 - 10:46:07 EST
Kazakh president's daughter defends media mergers, financial transparency -
Khabar TV
Kazakhstan's Khabar Agency, which is headed by President Nursultan
Nazarbayev's eldest daughter, Dariga, has taken over management of the
financially-ailing Kazakhstan First TV channel. The latter is to be merged
with Khabar-2, a Kazakh-language channel. In an interview broadcast on
Khabar TV on 27 October, Dariga Nazarbayeva brushed off criticism of
Khabar's financial affairs, saying that she had always insisted on
financial transparency precisely because she is the president's daughter.
She also said she did not allow officials to "meddle in the channel's
broadcasting policy". The interview was prefaced by the results of a poll
which put Khabar TV narrowly behind the Russian ORT-Kazakhstan in the
popularity stakes, a long way ahead of Kazakhstan First TV channel and
other stations. The following are excerpts from report by Kazakh Khabar TV
on 27 October:
[Presenter] The Khabar Agency marked its 6th anniversary on 23 October. It
is not a particularly momentous jubilee. However, today we decided to show
you how the Khabar Agency works. At the same time, there will be no
advertisements or rapturous stories about ourselves.
Some political figures have shown a particular interest in the agency's work
in recent times. In interviews and speeches they promise to find out the
truth sooner or later and establish how the agency's money is being spent.
Notably, none of these people have asked the agency for information
directly, preferring sensational interviews with other television channels
or newspapers. [Passage omitted: this happens every year when the
republican budget is being drawn up; Kazakh President Nursultan
Nazarbayev's eldest daughter, Dariga, heads the agency]
We shall present you now some results of a broad opinion poll carried out by
the Comcon-2-Eurasia company [date not specified]. The poll established the
popularity ratings of the country's television channels and newspapers. In
all, over 5,000 people were polled throughout Kazakhstan.
This chart shows the ratings of television channels [over picture of a
chart]. The ORT-Kazakhstan television channel [Russian Public TV channel's
Kazakh branch] has been named Kazakhstan's most popular television channel.
It was popular with over 76 [actual figure shown on the chart is 76.2] per
cent of those polled. The Khabar Agency follows narrowly behind
ORT-Kazakhstan, with 71 per cent of the vote. And this is the result of the
[Khabar] agency's work over just the past six years. Other television
channels came a long way behind. It is worth noting that another nationwide
channel, Kazakhstan First channel, whose broadcasting extends over the
entire country, too, enjoys little popularity with the population - only 14
per cent [actually, 13.9]. [Other figures given: Kazakh Commercial TV
channel - 28.6 per cent; Channel 31 - 6 per cent; the country's only
Kazakh-language station, Khabar Agency's Khabar-2, which polled 5.4 per
cent]
ORT-Kazakhstan has also earned the greatest confidence among Kazakhs: 49
[actually, 49.6] per cent of respondents trust it and prefer watching this
channel. It is understandable that this channel, which has many years of
rich experience and a wide audience, occupies the corresponding leading
place. Khabar lags just a short way behind ORT-Kazakhstan on the confidence
rating at 45 per cent [actually, 45.03 per cent] and has a significant lead
over the others. The Kazakh Commercial TV channel, which also beams to the
entire country, lags significantly behind Khabar: about 14 [13.8] per cent
of respondents trust it. [Kazakhstan First channel - 3.6 per cent; Channel
31 - 1.5 per cent; Khabar-2 - 1.3 per cent]
[Passage omitted: the confidence factor is very important for television
channels; next chart indicating popularity in terms of sound and picture
quality: ORT-Kazakhstan - 70.3 per cent; Khabar - 63.7 per cent; Kazakh
Commercial TV - 17.5 per cent; Kazakhstan First channel - 5.6 per cent;
31st channel - 4.4 per cent; Khabar-2 - 3.02 per cent]
The next chart is interesting: according to the poll, Khabar has a
significant lead over ORT-Kazakhstan in terms of programme quality.
ORT-Kazakhstan programmes were considered high-quality by 14 [14.3] per
cent, whereas 57 [57.1] per cent of respondents rated Khabar highly on this
indicator. This chart is also interesting in that respondents did not
assess the quality of other channels, bar Kazakh Commercial TV channel
[14.3 per cent] and Tan TV channel [not indicated]. The other channels got
a zero rating. [Passage omitted: this does not mean that they have no
audience]
One more chart reflects the popularity of the television channels in the
biggest Kazakh city, Almaty.
The most popular channel in this city is the Kazakh Commercial TV channel -
71 per cent. ORT-Kazakhstan [64 per cent], Khabar [44 per cent], Channel 31
[41 per cent], Rakhat [28 per cent] and Tan [18 per cent] are among the
first six [Kazakhstan first channel and Khabar-2 are not indicated in this
chart].
We see that the private channels occupy quite firm position in this
category. This is primarily explained by the fact that local news is always
interesting for local people.
Although the Kazakh Commercial TV channel occupies the first place in terms
of confidence [49 per cent], the gap between it and its competitors is not
significant, and the other channels' indicators are not brilliant
[ORT-Kazakhstan - 45 per cent; Khabar - 24 per cent; Channel 31 - 15 per
cent; Kazakhstan First channel and Khabar-2 are not indicated]. Apparently,
it is not so easy to win the confidence of the experienced Almaty audience.
The chart clearly shows that no television channel won even 50 per cent of
respondents' votes.
We told you at the beginning that we were showing you all these charts
without any desire for self-advertisement. These are the opinion poll
results and show the real situation which has developed in the Kazakh
television market.
You have seen from the charts that Khabar's position is quite firm, although
it loses to the Russian monster called ORT. In other words, the fact
remains: state channels reflect public interests and the public values it.
Naturally, one cannot be nice to everybody. Nobody took any interest in the
fate of a dying channel like Kazakhstan First and nobody raised the alarm
over it. Let us recall that 50 per cent more [state] funds have been spent
on Kazakhstan First than on Khabar over the past six years. But the results
of the two channels' work are clear.
And now, as soon as the government decides to hand over Kazakhstan First to
Khabar for trustee management in order to try and revive it, some people
start showing an interest in Kazakhstan First.
[Passage omitted: Khabar has decided to clear myths around it]
[Correspondent, over video of studios, people, buildings, Dariga Nazarbayeva
walking down the corridor, interviews, Astana streets, deputies, Khabar-2
journalists and studios, parabolic aerials, Kazakhstan First channel
studios, buildings and premises, parliament premises, archive footage
prepared by Khabar journalists] [Passage omitted: Khabar Agency marked its
sixth anniversary last week; its routine; television is an expensive
business]
Khabar employs 440 people at the moment. There has been talk of Khabar's
privileged position for the last six years, talk of incredibly huge amounts
of capital being raised here and suggestions that would be no Khabar were
the head not the president's daughter.
Dariga Nazarbayeva partly agrees with the last statement and says that her
status as the president's daughter helps her in her work.
[Dariga Nazarbayeva, chairman of the board of directors of the Khabar Agency
closed joint-stock company, captioned, interviewed in office] It also helps
in a strange way because all these past years Khabar has been in a sort of
dual situation, i.e. the government dislikes and criticizes us and the
parliament criticizes us when the opportunity arises, whilst at the same
time we are under constant fire of criticism from the opposition. And it is
not clear what they should do. It [Khabar] seems to be a powerful channel,
it seems that it has been funded generously. In fact, the channel is not
under the government's control because it is headed by the president's
daughter, and it is not under the presidential administration's control and
our relations are even strained, because I do not allow officials to meddle
in the channel's broadcasting policy.
[Passage omitted: Correspondent says that many MPs and ministers and others
want to meddle in policy to gain prestige]
[Dariga Nazarbayev] The cause of the hullabaloo currently taking place
around Khabar is the channel's budget for the next year, which is being
debated by parliament. Well, it is nothing new for us, we prepare for this
every autumn and we are ready because the president's power is strong
enough and objective in the country. And I do agree that the [president's]
power is authoritarian, it cannot be otherwise in such historical and
economic conditions, otherwise there will be no order, stability and
economic growth in the country. That is why the only thing they can protest
against without incurring punishment is, indeed, the Khabar channel. And
why the Khabar channel? Certainly, because there is Dariga Nazarbayeva and
this is a sort of test for their civic courage. If some politicians find
fulfilment of their political ambitions in this, then I can only welcome
this.
[Correspondent] [Passage omitted: hullabaloo around the channel's budget has
become traditional] From year to year, those who defend the state treasury
make the same mistakes.
The first myth: it is not clear how Khabar spends the money it gets from the
budget and it cannot in practice be controlled. The second myth: the state
funds spent on Khabar are immodestly huge.
We shall return to the first myth later. Concerning budget subsidies, the
situation is like this: for this year, the state has effectively allocated
almost 890m tenge [the current exchange rate is 148 tenge to the dollar],
or about 6m dollars, or three detached houses in which average businessmen
like to live. This money is enough only to pay half of the salaries, to pay
for municipal services and to maintain its car fleet, to pay for 80 per
cent of television and radio signal transmission service charges, 10 per
cent of telecommunications service charges and 50 per cent of materials
bought.
[Gulnar Iksanova, general director of the Khabar Agency closed joint-stock
company, captioned, interviewed in office] Everything is very general in
accounting and financial reports. This [expenditure] item is called
"purchase of materials". In fact, this item means far more: it is our
entire production. We describe as materials the audio and video cassettes
and licensed products we buy and dub in the state [Kazakh] and Russian
languages. It also includes packages of the world's major news agencies.
[Correspondent] All the remaining needs, Khabar covers from its own funds.
Above all, the channel buys and repairs equipment with the money it earns
from advertising. [Passage omitted: prices for equipment Khabar possesses]
[Gulnar Iksanova] Ukraine spends 32.5m dollars on its state television. Our
country spends slightly more than 6m dollars. Ukraine has also given a loan
to buy equipment. Uzbekistan allocates slightly more than our state does,
7.5m dollars from the budget on its state television, but Uzbekistan has
given a loan of 50m dollars under state guarantee. These are accurate
figures.
I have got an unofficial figure - over 100m dollars - for RTR [Russia TV].
[Passage omitted: Correspondent says the two state channels, Kazakhstan
First channel and Khabar, have been funded similarly]
[Gulnar Iksanova] I can say for sure that in total, the state has spent 60
per cent more on Kazakhstan First channel and Kazakh Radio than on us over
the past six years.
[Correspondent] [Passage omitted: Kazakhstan First channel is in bad
financial shape] Recently, the Republican Kazakh Television and Radio
Company has changed its managers: Khabar has assumed trustee management of
the first channel.
[Dariga Nazarbayeva] It was sad to observe how the [first] channel was dying
before our eyes. Certainly, one can be happy with one's successes, but it
is difficult to see this t when your colleagues are in such a situation.
[Correspondent] The Khabar management intends to make the first channel
interesting for viewers and financially successful. It will be a channel
for ethnic Kazakhs, says Dariga Nazarbayev, a channel with social and
political, entertainment and educational programmes in the state [Kazakh]
language.
It is also planned that Kazakhstan first channel and Khabar-2 will merge
into one channel called Kazakhstan, a change that will take place very
soon. At the same time, Khabar's initiatives to help the Republican Kazakh
Television and Radio Company to overcome its crisis have also created
grounds for criticism.
[Dariga Nazarbayeva] Nobody was interested in this until we took over the
management of the Kazakhstan First channel. Everybody was happy with the
channel, be it good or bad. But certain people are concerned now and we are
pleased about that.
[Correspondent] Another target for criticism is the alleged absence of
financial transparency. Deputies - it is mainly they who express their
criticism - say that they have no access to Khabar's financial reports and
they cannot control how it spends budget funds.
At the same time, according to the channel management, all financial reports
are regularly submitted to the Finance Ministry and the State Property
Committee and deputies can ask for these documents. A very important
detail: Khabar presents its reports in a special format to the State
Property Committee.
[Gulnar Iksanova] It [financial report] includes literally everything:
various forms of accounts which are not included in the [current] balance
and their interpretation, various forms of interpretation of payables and
receivables, up to the interpretation of entertainment allowances,
representation expenses and so on and so forth. [Passage omitted: many
financial audits have been carried out at Khabar in 2001]
[Dariga Nazarbayeva] I do not know any other more transparent organization
operating in this country. In principle, I also do not know any other more
successful state project which is built using state money. I have told
[Khabar's] accountants that given that I am the president's daughter and
head the channel, there is always a temptation to accuse me of embezzling
state money. This is understandable because people who work on that sort of
p principle cannot think otherwise. That is a normal situation. That is why
I tell my personnel that all documentation, particularly financial and
accounting documentation, should be prepared as for the General
Prosecutor's Office. And we are working proceeding precisely from this
postulate, i.e. we are always ready for any checks and we even welcome
them.
[Passage omitted: correspondent talks about general plans for future]
[Dariga Nazarbayeva] In principle, the state can afford to spend more on
television with the present economic growth, because the issue of
information security is on the agenda every year. And the issue of
information security is topical not only in Kazakhstan, but throughout the
world, because the telecommunications sphere is developing very actively
and many political scientists conclude that information wars will replace
cold and hot wars. And every country is trying to secure its information
field. And we should learn from Russia's recent experience [presumably
meaning Russian and Western coverage of the military operation in Chechnya
and in Serbia]. That is why the growing hullabaloo around television, which
is the most powerful tool for exerting influence upon people at the moment,
will grow with every year and this is a normal situation.
People have just suddenly got money and they have understood quite late how
important television is. And certainly, it is easier to take away something
that already exists than to build something new.
Source: Khabar Television, Almaty, in Russian 1400 gmt 27 Oct 01
BBC Mon CAU 281001 va/nb
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