Uzbekistan to reimburse business losses caused by administrative error
Baku, Azerbaijan, Aug. 2
By Fikret Dolukhanov – Trend:
Losses caused to both natural and legal persons in Uzbekistan as a result of the issuance of an illegal administrative act of a state body or official are subject to reimbursement by the state, primarily through extrabudgetary funds of the relevant bodies, Uzbek media reported.
The corresponding order came into force on Aug. 1, 2018 on the basis of the president's decree on dramatically improving the investment climate in Uzbekistan.
Cancellation or amendment of an administrative act of a public authority, in cases where it affects the legitimate interests of a bona fide investor and an entrepreneur, is judicially examined, unless its preservation creates a threat to the public interest.
“This means that the state takes responsibility for administrative acts taken by authorized state bodies," Chief Consultant of the Ministry of Justice Javohir Kolizoda explained to the Uzbekistan 24 TV channel, “For example, the head of the district administration decided to divert the land to the investor, and the investor, relying on the strength of this act, begins to build. However, after a while it turns out that this decision was illegal, and a higher-ranking official cancels the decision. In this case, the investor remained at a loss.”
According to Kolizoda, now, the investor or entrepreneur is compensated for property damage that arose due to the trust in the legal force of the administrative act in such cases.
Such measures will increase responsibility of local officials for the decisions they make.
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