An investigative report provides details on alleged dirty dealings in Azerbaijan involving Stockholm-based telecom giant TeliaSonera and a company purportedly controlled by President Ilham Aliyev’s family.
The report, published May 27, was the result of a months-long investigation conducted by the Organized Crime and Corruption Reporting Project, Swedish public television SVT and the Swedish news agency TT. It alleges that TeliaSonera, a former majority shareholder in Azerbaijan’s largest telecommunications company, Azercell, facilitated the takeover of a large Azercell stake by an entity believed to be associated with President Aliyev’s family via offshore companies. The transaction cost Azerbaijani taxpayers an estimated $600 million, according to the report.
The cost to TeliaSonera investors, who are now demanding the details, is reckoned at roughly $709 million.
The report was based on work initially undertaken by now-jailed Azerbaijani investigative reporter Khadija Ismayilova. In December 2014, Ismayilova, whose work has appeared on EurasiaNet.org, was arrested on criminal charges several months after releasing a story that examined the connection between Azercell and Aliyev’s two daughters, Leyla and Arzu. Ismayilova remains in official custody pending trial.
A tenth-grader in Tajikistan’s capital has been detained after successfully soliciting a $50,000 bribe by impersonating the son of President Emomali Rahmon, Asia-Plus reports.
Last August, according to the state anti-corruption agency, Khushdil Kurbonov and a relative took $50,000 from a man in exchange for promising him 0.3 hectares of land just outside the capital.
Kurbonov then called a local official in charge of the land and said he was Somoni Emomali (sometimes Somon), the president’s younger son, and instructed him to hand over the deed. The official did not believe Kurbonov.
Kurbonov attends the Dushanbe International School, according to Asia-Plus. In 2012 Tajik media reported that Somoni was attending the Dushanbe International School; he would now also be in the 10th grade.
The organization investigating the case, officially known as the Agency for State Financial Control and Combating Corruption, is headed by another of the president’s nine children, Rustam Emomali. Rustam became head of the agency in March. His appointment (by his father) increased long-standing concerns that official corruption investigations will steer far and wide of the long-ruling first family.
That someone thought he could pull this off by posing as the president’s son speaks volumes about how business works – and the first family is viewed – in Tajikistan, a country that ranks 152 out of 175 on Transparency International’s most recent Corruption Perceptions Index.
Rahmon, seen here placing the first brick for his new city, likes to build.
Faced with a bulging population, Tajikistan’s government plans to build an entire new city in a stretch of northern desert. State television showed President Emomali Rahmon breaking ground this week, inspecting plans, receiving applause and placing the first brick.
Tajikistan’s population has more than doubled since 1979. With an annual growth rate of 2.3 percent, Tajikistan has the fastest growing population in Central Asia (the global average is around 1.2 percent), according to UN data.
The new city project – located 10 kilometers from Tajikistan’s second-largest city, Khujand – will house 250,000 people, the president’s website reports. Rahmon suggested the new city be named Saihun, after a nearby river. He ordered the building of over 50 new schools and 40 sports facilities. Over 7,000 hectares of orchard will rise from the desert, he promised.
The strongman likes to build. Last week, Rahmon laid the first stone for the region’s largest theatre. In 2011, he unveiled the world’s tallest flagpole (which was recently surpassed by another vainglorious dictatorship, Saudi Arabia). Tajikistan already boasts the world’s biggest teahouse, the region’s largest library (with few books) and has, for years, been building its largest mosque.
The hated younger son of Kyrgyzstan’s former president is living the highlife in the United Kingdom, inhabiting a house bought by an opaque shell company – probably with money stolen from the Kyrgyz people – while he waits for asylum. So alleges transparency watchdog Global Witness in a March 25 report.
Maxim Bakiyev never returned to Kyrgyzstan after his father, Kurmanbek Bakiyev, was ousted in a bloody April 2010 uprising that left around 100 people dead. He has since been found guilty at home of stealing millions in government funds and attempted murder, charges he says are politically motivated.
Meanwhile, he has applied for asylum in the UK and is eligible for permanent residency in three months, according to Global Witness.
How Maxim came to live in a $5.2-million mansion, bought by a secret Belize-registered company just after his father’s regime imploded, is the focus on the Global Witness report.
The report provides strong evidence suggesting that the scion of the Bakiyev clan, if not fully identifiable as the owner of the house in a posh London suburb, at least inhabits it.
Kyrgyzstan’s obscurity has allowed Maxim to fly under the radar of the British press for the most part. Even the British football club he was rumored to have a stake in was fairly unfashionable.
Gulnara Karimova, the daughter of Uzbekistan’s strongman leader Islam Karimov, has been making international headlines for years amid charges of massive bribery and corruption. But fresh evidence unearthed by an anti-corruption watchdog suggests her avarice reached mind-boggling scales as she vacuumed up cash from telecoms companies wanting a slice of Uzbekistan’s lucrative cellphone pie.
Karimova received over $1 billion in payments and shares from Scandinavian and Russian telecoms companies such as TeliaSonera, Telenor, MTS, and Alfa Telecom, the Organized Crime and Corruption Reporting Project (OCCRP) alleged in a report published March 21.
“Her audacious schemes may have cost the people of Uzbekistan money that could have paid for pensions or healthcare but instead went into banks, an offshore hedge fund and luxurious real estate around the world, including a castle in France and a penthouse in Hong Kong,” the OCCRP stated.
The watchdog was skeptical of the defense put forward by telecoms firms that they did not knowingly commit any wrongdoing: “While the international companies involved claim to have been innocent or unwilling dupes of her maneuvers, the blatant means by which Karimova allegedly operated made it virtually impossible for those involved not to realize they were giving in to extortion and bribery.”
Documents have come to light proving that the beneficiary of a $748,000 renovation funded by the U.S. military was not the state or people of Kyrgyzstan, as initially claimed by Kyrgyz and U.S. officials, but a private citizen who acquired the property under dubious circumstances.
The former state hospital, in the Bishkek suburb of Shopokov, was intended to be a “development center for battered women” and “a shelter for up to 55 women and their children,” according to U.S. military press materials distributed during a ribbon-cutting ceremony in 2010. The American airbase at Manas funded the renovations. The base commander and U.S. ambassador attended the event.
For a time, the impressively refurbished two-story building stood empty. Today it accommodates a private kindergarten that earns its owners roughly $47,000 per year, based on calculations using figures provided by the school’s employees.
The $748,000 grant was unusually large for Manas, accounting for one-third of the base’s humanitarian aid spending that year. Most of Manas’s development grants that year were for less than $20,000.
American officials appeared to believe at the time that the funds were being used to refurbish a state-owned building. In 2011, when the building stood empty, a Manas spokesperson told EurasiaNet.org that after refurbishment the building was supposed to remain Kyrgyz government property and said Manas was not responsible for monitoring program activity.
The implementing partner was Zamira Akbagysheva, the head of Kyrgyzstan’s Congress of Women.
Today, a sign on the gate outside the building declares “Authorized People Only.” With its sparkling paint-job, new windows, and bright-red roofing tiles, the building stands out in the neighborhood of dilapidated gray houses.
Kazakhstan’s public health officials in charge of the fight against HIV/AIDS and tuberculosis have conned a flagship global project out of over $5 million by using “smokescreen companies” to rig bids and overcharge for goods and services, the Global Fund to Fight AIDS, Tuberculosis and Malaria has said.
A probe by the Office of the Inspector General (OIG), the Switzerland-based fund’s oversight arm, “found evidence of systematic collusive, fraudulent, and corrupt practices by local vendors and other parties” involving a total of 76 contracts worth some $16.5 million, it said in a January 28 statement.
As a result of the contracts, awarded by two health centers under the remit of the Ministry of Health, the Global Fund was swindled out of at least $5.4 million through “systematic overpricing for printing, office equipment, health products and food parcels,” the OIG claimed.
There was no evidence that the goods – which included “condoms and a whole range of other goods and services for patients with HIV and/or tuberculosis” – had not been delivered, however.
The OIG is urging the Global Fund to take measures to recover at least $5.4 million, although it described that figure as a conservative estimate of what it had been conned out of by Kazakhstan’s Republican Center for Prophylactics and Control of AIDS (RCAIDS) and National Center of Tuberculosis Problems (NCTP).
Four individuals – called the “Ring Leaders” in the report and identified only as Alpha, Beta, Gamma, and Delta – were allegedly the main beneficiaries of the con, involving 17 companies which were part of an interlinked web colluding with each other. Other public healthcare officials were aware of the scheme, the OIG alleged.
Four of the five Central Asian states have failed to meet basic fiscal transparency standards, according to the U.S. State Department’s latest Annual Fiscal Transparency report. The study does not appear to affect whether a country receives U.S. government funding, however.
In addition to ascertaining whether countries meet State’s minimum standards (such as publishing receipts and expenditures in publicly available national budget documentation and bidding and contract information for natural resource extraction), the study assesses progress—or lack thereof.
Published by the Office of Monetary Affairs since 2008, the report only includes “those governments it anticipated would receive bilateral allocations of assistance” in fiscal year 2014. The latest version of the report was released January 14.
This year, Kazakhstan, Tajikistan, Turkmenistan and Uzbekistan were all judged to have made “no significant progress” toward meeting minimum fiscal transparency standards, joining 35 other countries in that category. Overall, 50 fell below the minimum-standards threshold.
Kyrgyzstan, which has harnessed international assistance from USAID and other donors to improve public access to state budgets was judged to have met minimum transparency standards for the second year running.
In 2012, Tajikistan made significant progress toward the benchmark. It has slipped over the last two years, however.
Turkmenistan and Uzbekistan, which routinely rank at the bottom of Transparency International’s Corruption Perception Index, have never glittered in this report.
Last month, Kyrgyzstan’s Education Ministry announced two tenders worth almost $3 million to print more than 1 million textbooks. But it appears the ministry did not want just anyone to bid.
Someone involved in posting the tenders on the government’s procurement website included a couple of Latin-script vowels within Russian keywords (written in the Cyrillic script), making it impossible to search for the announcement.
For example, there is no difference to the naked eye between these two words: books and bооks. But the second word contains two Cyrillic o’s. That makes it impossible to find with an Internet search, which requires an exact match.
In the same way, the Education Ministry used the Latin letters a, e and o (which also appear in the Cyrillic alphabet) in its tender announcements, which are worth a total of $2.8 million. Reporters at Kloop.kg, who revealed the trick, recorded video evidence of how the announcements were hidden.
Anyone who didn’t know about the Latin letters would struggle to find the tender announcements. Anyone who did – someone colluding with a ministry official, for example – would have a massive advantage.
Kyrgyz officials didn’t think up this scheme on their own.
Back in 2012, Russian anti-corruption crusader Alexei Navalny, known for revealing fraud in state procurements there, described how officials “embezzle millions and billions” using this tactic.
A former mayor of Kyrgyzstan’s second-largest city faces criminal charges connected to his time in office, local media are reporting.
The state prosecutor issued an arrest warrant for Melisbek Myrzakmatov on abuse of office charges November 28. With less than a year before elections to the Kyrgyz legislature next fall, some will see the charges as politically motivated. Myrzakmatov, who has pledged to run for parliament, is believed to be abroad, although exactly where is the subject of speculation.
Myrzakmatov shot to infamy in June 2010 as Osh’s mayor during ethnic violence between Kyrgyz and Uzbeks that left hundreds dead. Described by the International Crisis Group as a “cruel and unyielding young nationalist,” Myrzakmatov, who remains very popular with many ethnic Kyrgyz in the country’s south, did little to prevent the violence; some believe he had a role in instigating it.
Myrzakmatov held his position for almost five years, from January 2009, before the violent change of government in Bishkek, to December 2013. For much of that time, Osh resembled a recalcitrant fiefdom, only nominally subordinate to authorities in Kyrgyzstan’s capital, Bishkek.