Head Of Kyrgyz Gold Firm Faces Court Hearing On Fraud Charges

Dilger Japarov, head of the Kyrgyzaltyn company, says the money he transferred to Centerra Gold in December 2013 represented dividends Centerra had earned from its shares in Kumtor Gold Company.

A Bishkek court is set to decide whether the head of a state-owned gold producer will remain in pretrial detention on allegations of financial fraud.

Dilger Japarov, head of the firm Kyrgyzaltyn, was arrested on May 28 on charges of illegally transferring $200 million of company funds into bank accounts of the Canadian firm Centerra Gold.

Centerra Gold owns and operates the Kumtor gold mine in northwestern Kyrgyzstan through its subsidiary, Kumtor Gold Company.

But the Kyrgyz government renegotiated its contract with Centerra in 2009, increasing its ownership in Centerra Gold to 33 percent.

Japarov says the money he transferred to Centerra Gold in December 2013 represented dividends Centerra had earned from its shares in Kumtor Gold Company.

Kyrgyz authorities say the transfer required prior government approval.