Four executives have been dismissed from Nordic telecoms giant TeliaSonera amid an ongoing corruption investigation in Sweden that has come uncomfortably close to Gulnara Karimova, the scandal-hit daughter of Uzbek President Islam Karimov.
“The Board’s conclusion is that some senior employees no longer have the trust of the Board,” Marie Ehrling, its chairwoman, said in a statement posted on TeliaSonera’s website on November 29. “Therefore they have been notified that their employment with TeliaSonera will be terminated and they will leave their position effective immediately.”
The dismissals come amid repercussions from an ongoing corruption probe that Swedish police opened in September 2012 into claims that the Swedish-Finnish telecoms giant paid hundreds of millions of dollars in bribes to enter Uzbekistan’s telecoms market.
The probe forced the resignation of CEO Lars Nyberg in February, and now four more heads have rolled. The company did not name them all but said in a second statement on November 29 that Chief Financial Officer Per-Arne Blomquist would “leave his position effective immediately.” The Financial Times reported that Tero Kivisaari, the company’s former head of the Eurasia division, was another of the fired employees.
Tajikistan’s President Emomali Rakhmon has appointed his son to head the country’s Customs Service, the president’s website reported today. Many have long believed Rakhmon is grooming the 26-year-old Rustam Emomali to be his successor; today’s announcement will certainly cement those views.
Rakhmon held the first meeting of his new cabinet on November 30. The strongman, in his 21st year in power, dismissed the government earlier this month after winning a fourth term in a poll widely derided as farcical. Rakhmon regularly reshuffles senior leaders in a process that ensures few others gain significant power or build strong patronage networks.
For almost three years, the younger Emomali had been deputy head of the Customs Service in charge of combatting smuggling. He has also served on the capital’s city council, worked at the State Committee for Investments and State Property Management and as deputy head of the national football federation, according to Asia-Plus. He is also a founder and part owner of Dushanbe’s Istiqlol Football Club.
Scandal-plagued Nordic telecom giant TeliaSonera has distanced itself from its local subsidiary in Uzbekistan, Ucell, after Ucell sponsored an event hosted by Gulnara Karimova, the controversial daughter of the country’s strongman.
Ucell sponsored a concert this week marking the opening of Karimova’s annual weeklong arts, music, and fashion extravaganza, Style.uz.
That’s likely a little embarrassing for TeliaSonera, which is embroiled in a corruption investigation in Sweden, accused of paying over $300 million in bribes to a Karimova associate for access to Uzbekistan’s telecoms market.
A spokesperson for TeliaSonera confirmed that Ucell had sponsored the event but stressed the decision was taken locally without its involvement, Sweden’s The Local website said on October 24. "Ucell contributes to projects meant to contribute to Uzbek society," The Local quoted the TeliaSonera representative as telling the TT news agency. TeliaSonera did not disclose the amount of money Ucell had paid for Karimova's bash, which is billed as a charity fundraiser, The Local said.
In February, an audit unearthed no evidence of corruption, but found TeliaSonera had not employed adequate safeguards when entering as opaque an environment as Uzbekistan, which Transparency International ranks as 170 out of 174 on its Corruption Perceptions Index.
A nephew of Uzbekistan’s Islam Karimov, who was once tipped as a potential successor to the aging strongman, has been detained on suspicion of operating an organized crime ring.
Citing a source at the Fergana Region prosecutor's office, Uznews.net reported today that Akbarali Abdullayev, a son of the first lady's sister, was arrested October 10 on embezzlement, tax evasion and bribery charges.
"He is in a detention center in Tashkent at the moment. His arrest warrant has been sanctioned from on high," Uznews.net quoted the source as saying.
Abdullayev and his mother Tamara Sobirova, the president’s sister-in-law, are widely believed to control large swathes of the economy in Uzbekistan's Fergana Valley, including industrial giants like the Fergana oil refinery and a cement plant in Kyvasay.
In the summer of 2012, Abdullayev reportedly fled Uzbekistan following the arrests of several of his business associates on corruption charges. After Sobirova received guarantees her son was safe, Abdullayev returned in late 2012, Uznews.net said.
Prior to that drama, Abdullayev had been mooted, Uznews said, for a seat in parliament's upper chamber, the Senate (where the president has the right to appoint 16 of 100 members), and was sometimes tipped as a potential successor to Karimov.
An exiled opposition leader says cuts to basic utilities signal that Turkmenistan’s economy needs drastic reforms.
In a letter to President Gurbanguly Berdymukhamedov, Vyacheslav Mamedov, chairman of the Netherlands-based Democratic Civic Union of Turkmenistan, says that water shortages in the Caspian port town of Turkmenbashi and other areas of western Turkmenistan have become "critical.”
“The situation is worsening,” Mamedov wrote in the message, which was published by the Vienna-based Chronicles of Turkmenistan website on October 9.
"No less acute is the situation with heating in towns and settlements in western Turkmenistan. In Turkmenbashi, 14 of 15 schools have no heating at all," Mamedov wrote. "Not only private houses but also 15 nurseries and hospitals have been cut off from centralized heating."
Mamedov blamed Berdymukhamedov and his predecessor, Saparmurat Niyazov, for the problems, noting that the first president’s draconian control over political and economic life had led many professionals to flee. Niyazov compounded the problem when he closed vocational colleges, creating a pressing shortage of qualified specialists.
Though Berdymukhamedov has expanded education, the quality still leaves much to be desired. And the dictator has continued Niyazov’s policy of relying on foreign laborers.
Pressure is mounting in Europe over graft probes linked to associates of Gulnara Karimova, daughter of Uzbekistan President Islam Karimov, as reports emerge that French and Latvian investigators are closing in on corruption enquiries previously confined to Sweden and Switzerland.
French investigators have opened a probe “targeting Gulnara Karimova” and linked to a money-laundering case connected to her associates, the Rue89 news website reported on July 31, citing an unidentified judicial source.
Swiss prosecutors confirmed earlier this month that French police had raided properties in France at the behest of the Swiss inquiry, which is investigating four Uzbek associates of Karimova’s for money laundering. One of the properties was a Paris flat belonging to Karimova, BBC Russian reported at the time, citing an “informed source.”
Rue89 said properties “which could belong to Gulnara Karimova” had been searched on June 18, adding that she owns “several bolt-holes in France” including a villa outside Saint-Tropez and a property in Paris’s chic 16th arrondissement. Rue89 said Karimova owned the real estate through Paris-based companies managed by Alisher Ergashev, a suspect in the Swiss dirty money probe.
Fugitive oligarch Mukhtar Ablyazov, who has been on the run from police in Kazakhstan and Britain, has been captured in the south of France, according to a report in the Financial Times.
Ablyazov was arrested on July 31 by French special forces near the billionaires’ playground of Cannes, the FT quoted an unnamed family lawyer as saying. It did not specify on what charges Ablyazov had been detained: Kazakhstan has been pursuing him for alleged financial crimes that Ablyazov denies, and he also has a case to answer in Britain, where he escaped a jail sentence for contempt of court last year by going underground.
Ablyazov formerly chaired Kazakhstan’s BTA Bank, which he also owned through an undeclared holding until it was forcibly nationalized in 2009. Ablyazov fled to London, where he was sued by his former bank for allegedly defrauding it of some $6 billion.
After years of legal wrangling, Ablyazov – who accuses Astana of pursuing him for political reasons and has asylum in the United Kingdom – fled to an unknown destination when the London High Court ordered him jailed for “deliberate and brazen” deception (concealing assets he had been ordered to disclose in the fraud case). Ablyazov was later debarred from fighting the case and the courts ordered his assets sold to compensate BTA Bank.
Less than a week after news broke that Gulnara Karimova, the image-conscious daughter of Uzbekistan’s long-serving strongman, had lost her post as ambassador to the United Nations in Geneva, she was home courting fans and drubbing a potential rival.
In a blog entry posted July 20, Karimova described her recent trip to the distressed market town of Kokand in the Fergana Valley. As she’s done previously to win sympathy with potential supporters, there Karimova championed small businesses. But she went further, using the opportunity to attack Rustam Azimov, the first deputy prime minister and finance minister – a man often mooted as a potential successor to her father, President Islam Karimov.
“Looking at the ads and signboards, you understand that you’re in a trading city, although the old posters and billboards that have been hanging there for ten years are a telltale sign that trade was more boisterous before the super financial regulator at the ministries of economy and finance introduced excise and other operational super limitations,” Karimova wrote in a clear reference to Azimov.
Update, July 18: A trusty source close to Washington tells EurasiaNet.org that Economics Minister Temir Sariev's allegations are "way off" and characterized him as a "populist" with an unclear agenda. But someone is going to be very unpopular when that money doesn't come home. Stay tuned.
The son of Kyrgyzstan’s deposed dictator might be living a cushy life in the United Kingdom, but money he stashed in the United States is reportedly now sitting behind bars.
Russia’s Kommersant daily, citing Kyrgyzstan’s Economics Minister, reported on July 17 that Washington has frozen three of Maxim Bakiyev’s American bank accounts, which held $74.4 million.
Bakiyev is the son of former President Kurmanbek Bakiyev, who was ousted amid street violence in April 2010. The younger Bakiyev, who fled to the UK, was known in Kyrgyzstan as the “prince” for parlaying his father’s influence into lucrative and opaque business deals. To this day, in Kyrgyzstan he might be more reviled than his father. In March, a Bishkek court found the younger Bakiyev guilty in absentia of embezzling over $100 million in state funds. He received a 25-year prison sentence.
Late last year, the Department of Justice tried to extradite the younger Bakiyev from London to the United States to face charges of conspiracy to commit securities fraud and obstruction of justice. An affidavit, filed last April in the US District Court for the Eastern District of New York, appeared to finger Maxim as “co-conspirator #1” in an insider trading case involving US securities. (The affidavit did not name Maxim Bakiyev.)
Astana and fugitive oligarch Mukhtar Ablyazov are engaged in an escalating war of words after Italy expressed contrition for deporting his wife and daughter to Kazakhstan.
Italy revoked the deportation order on July 12, citing failings in the procedure that saw Alma Shalabayeva and six-year-old Alua Ablyazova arrested in an overnight raid near Rome on May 28-29 and whisked to Kazakhstan on a private jet. Shalabayeva is now under criminal investigation in Almaty for allegedly using forged documents.
“It was a grave failure not to inform the government of the entire episode, which had from the start elements and characteristics that were not ordinary,” Reuters quoted a statement from Italian Prime Minister Enrico Letta’s office as saying.
The speed of the deportation was questioned at the time, with Shalabayeva’s Italian lawyer Riccardo Olivo describing it as “incredible” and accusing Rome of having “handed her over as a hostage to a dictator.”
Ablyazov says he believes his wife and daughter are in “grave danger” in Kazakhstan. In a letter to Letta quoted by La Stampa, he hailed the “courageous decision” to revoke the deportation order but said he feared Astana planned to send his wife to jail and his daughter to an orphanage.