Kyrgyzstan: Manas Fuel Supplier Doubles Down on Good News

A US Air Force crewman walks on the wing of a KC-135 refuelling jet at Manas airbase. (Photo: David Trilling)

Mina Corp, the controversial supplier of jet fuel at the Manas Transit Center in Kyrgyzstan, is getting a double-dose of good news. Not only has the company secured a new supply contract worth over $315 million, a Kyrgyz government investigation into possible improper business practices concerning Manas fuel operations has stalled.

The Pentagon’s Defense Logistics Agency on November 3 handed out the one-year, $315-million fuel supply contract to Mina, even though the company figures in both a US congressional subcommittee probe and the Kyrgyz official investigation.

The award seems sure to irritate Kyrgyz leaders, who have pressed Washington to alter the fuel-supply arrangement. Chuck Squires, a top Mina Corp official, reacting to the November 3 news in a statement distributed by the company, asserted his firm has “extraordinary capabilities as a supplier of fuel products.” Mina Corp representatives also pointed out that the US probe has uncovered no evidence of corrupt dealings involving Kyrgyz officials during the administrations of Kurmanbek Bakiyev, who fled the country in April, or Askar Akayev, who departed for Moscow in disgrace in 2005.

A statement issued by the US House of Representatives’ National Security and Foreign Affairs Subcommittee appeared to applaud the Pentagon’s decision. "The Department of Defense has devoted significant, high-level attention to improving transparency in contracting at Manas,” the statement said. “Today's [November 3] contract award, after an open and competitive solicitation, is an important step forward."

The Kyrgyz investigation that involves Mina Corp, and its affiliate Red Star Enterprises, the previous holder of the Manas fuel supply contract, seems to be stymied due to a lack of response by Russia and Uzbekistan to requests made by Bishkek for information.

The Kyrgyz probe is seeking to establish if Mina Corp and/or Red Star were engaged in illicit dealings, acting in concert with companies reputedly controlled by Maxim Bakiyev, the son of the former president. It is also seeking to establish what role, if any, the companies played in an alleged scheme to re-export cheap Russian fuel from Kyrgyzstan to third countries, in particular to Afghanistan.

The Bishkek investigation is focusing on six Kyrgyz-registered companies, identified as Manas Aerofuels, Kyrgyz Aviation Services, Central Asia Fuel, Aviation Fuel Service, Aircraft Petrol Management and Central Asia Trade Group. All six were allegedly controlled by Maxim Bakiyev, according to Prosecutor General’s Office in Bishkek.

Central to the investigation is Manas Aerofuels. Prosecutors allege that Bakytbek Sydykov, the former head of Manas International Airport “entered into a criminal conspiracy” with other airport board members to sell Aalam Services, a fuel facility storage depot at the airport, to Manas Aerofuels in June 2009 for just under $6 million. Aalam Services was nationalized in June.

John Lough, a spokesman for Red Star/Mina Corp, confirmed that “Mina rented fuel storage from Manas Aerofuels until its assets were expropriated by the interim government.”

Lough added Red Star and Mina Corp, both Gibraltar-registered entities, were cooperating fully with the investigation. “As far as we are aware, the investigations by the Kyrgyz authorities into the fuel supply contracts have not identified any wrongdoing on the part of Mina/Red Star,” he said.

In an interview with EurasiaNet.org, Azat Baigataev, the lead investigator at the Transport Office under the Prosecutor General’s Office in Bishkek, said that Kyrgyz officials had been able to establish links between Mina/Red Star and Manas Aerofuels. “Manas Aerofuels [acted as] an agent for Red Star/Mina,” Baigataev said. What authorities haven’t been able to determine so far is whether the relationship between Manas Aerofuels and Mina/Red Star broke any laws.

Baigataev stressed that the suspension of the investigation did not necessarily mean it was coming to an end. “Our investigation is still ongoing under statute 303 of the Criminal Code, corruption, and 307 of the Criminal Code, signing and making unfavorable contracts,” he stated.

“But the investigation is currently suspended because we sent some letters to Russia and Uzbekistan inquiring about fuel and we haven’t had a reply yet,” Baigataev continued. “We’ve had to suspend the investigation while we wait.”