Fresh allegations have emerged of bribery in Uzbekistan’s telecoms market involving another Nordic company and Gulnara Karimova, the daughter of President Islam Karimov.
A cellphone company partly owned by Norway’s Telenor is alleged to have paid some $25 million in kickbacks to acquire telecoms licenses in Uzbekistan, AFP reports, citing the Klassekampen daily.
The funds were reportedly transferred from Amsterdam-headquartered Vimpelcom, the operator of the Beeline brand in Uzbekistan, to the infamous Takilant Limited company, which is at the heart of two separate graft probes in Europe. Takilant is involved in a money-laundering probe in Switzerland (in which Karimova is a suspect), and also a bribery probe in Sweden involving another Nordic telecoms giant, TeliaSonera.
“Bank statements document how the money was transferred from a previously unknown company in the British Virgin Islands as Vimpelcom purchased licenses to the mobile market in the former Soviet state,” AFP quoted Klassekampen as saying.
Telenor responded that it has “zero tolerance for corruption, both when it comes to our own operations and also to the companies that we are part owners in.”
“We are a minority shareholder in Vimpelcom, so it’s up to Vimpelcom to take responsibility for answering any questions that relate to their operations,” Telenor communications head Glenn Mandelid told AFP.
Vimpelcom, which is 33 percent owned by Telenor, told EurasiaNet.org by email that there is nothing new in the information that has emerged.
A BMW 7 Series sedan. Will Kazakhstan's Olympic officials be using official money to buy themselves any of these? It's happened before. (BMW.ru)
The question on some minds in Almaty is not if Kazakhstan’s financial hub will win the right to host the 2022 Winter Olympics, but rather, if Almaty does, who will steal the public funds designated for the Games. After all, few in Almaty were shocked to learn this week that the last time they hosted a big sporting bash, millions of dollars disappeared.
A judge in Almaty has sentenced Aidar Musin, a member of the 2011 Asian Winter Games organizing committee, to over five years in jail for embezzling more than $3 million from the state’s budget for those games, reports TengriNews.
Kazakhstan's financial police had alleged that a company with connections to Musin won a 1.4 billion tenge ($7.3 million) contract to provide a telecommunications system and equipment for a ski-jumping complex in Almaty. More than 600 million tenge ($3.3 million) from that contract disappeared, with Musin using some of this money to buy himself a 2009 model BMW 750 sedan and a 2011 model Mercedes Benz E-250 sedan, the Almaty City Court ruled.
Almaty is one of two finalists in the competition to host the 2022 Winter Olympics. Only Beijing is also still in the running after a gaggle of European cities pulled out, citing low public support for the billions necessary to host the spectacle.
Kazakh officials say they are keen to keep costs for the 2022 Winter Olympics under control by attracting sponsors and advertisers to cover most expenses. The budget is currently around $3.7 billion. But as with any major project in Kazakhstan, it is hard to avoid questions about corruption.
French investigators are probing suspected kickbacks paid over a lucrative helicopter deal with Kazakhstan, Le Monde has revealed.
The report emerged the day before President Nursultan Nazarbayev heads to Brussels to cement Kazakhstan-European Union ties. Embarrassingly, it alleges the Kazakh president used a €2 billion contract with Marseille-based Eurocopter (since renamed Airbus Helicopter) to pressure Belgium to drop bribery charges against three Kazakhstani oligarchs.
The investigation into the Eurocopter deal (signed in 2010 when Nazarbayev was welcomed to France by Nicolas Sarkozy, then French president) on suspicion of money-laundering, corrupting public officials and receiving stolen goods began in 2012 and has been conducted in the utmost secrecy, Le Monde reported.
Last month two former Sarkozy associates who held top jobs in his administration were arrested on suspicion of involvement in paying kickbacks over the contract, the newspaper said, naming them as Jean-Francois Etienne des Rosaies, a former adviser to Sarkozy, and Nathalie Gonzalez-Prado, a former senior official at the Elysee palace.
The probe was sparked by the appearance of “suspicious funds” (more than €300,000) in the account of Etienne des Rosaies, the report said, adding that two unnamed “intermediaries” and a lawyer had been indicted.
Sarkozy is also “suspected of having put pressure in 2011 on the Belgian Senate,” at Nazarbayev’s request, over a bribery and money-laundering probe involving three Kazakhstani oligarchs as a condition for the helicopter deal going ahead, Le Monde claimed. The report did not name the oligarchs.
With elections to Kyrgyzstan’s ever-volatile parliament just a year away, it is an uneasy time to be a private businessman in the Central Asian country. According to managers at one of the country’s most popular media outlets, the pre-election shakedown has begun.
As politicians prepare for the 2015 ballot, the competition over votes and the resources necessary to secure them is expected to be intense. One way of fundraising is to turn to the time-honored tradition of corporate raids – raiderstvo in Russian – at key moments in the political calendar. Now Vechernii Bishkek, a profitable media outlet whose Russian-language newspaper has a weekly circulation of over 50,000 copies, is claiming that it has fallen victim to a raid from “people close to President [Almazbek] Atambayev.”
Vechernii Bishkek’s ownership structure is complicated. In 2000, the paper – and, significantly, its wholly owned print house – fell into the hands of Adil Toygonbaev, the son-in-law of then-President Askar Akayev. Toygonbaev secured a 50-percent stake in the holding company from one of its two owners before reportedly expropriating it entirely in a move that simultaneously relieved his family’s regime of the paper’s critical reporting and added the country's best-selling Russian-language newspaper to the family's list of assets.
As the fallout from a criminal investigation targeting Gulnara Karimova, the daughter of President Islam Karimov, continues to resonate in Uzbekistan, several high-ranking law-enforcement officers have been arrested on corruption charges in Tashkent.
The two probes may not be linked, but the latest arrests suggest that the elite infighting that has destabilized Uzbekistan over the last year may be spilling into a turf war between the country’s powerful security agencies.
The latest investigation targets the State Customs Service. Among the senior officers rounded up were the head of customs for Tashkent Region, Lieutenant Sirozhiddin Gulamov, and his deputy, Umar Bekov, Uzbekistan’s Podrobno news agency reported on September 30.
Another of the five detainees named was Major Abdusattor Abduraimov, the head of the Oybek border crossing on the frontier with Tajikistan. A chief inspector from Oybek and another inspector from the Gisht-Kuprik crossing on the frontier with Kazakhstan (better known as Chernyayevka), were also arrested, the report said. It quoted an unidentified source in the customs service for Tashkent Region, where both crossings are located.
The detainees are suspected of setting up an extortion ring and have already been charged with several crimes, including bribery, Podrobno said. They are alleged to have extorted money from entrepreneurs crossing official border checkpoints, where shakedowns are common during what is often a protracted and stressful process.
Photographs released by Karimova’s London-based spokesman, Locksley Ryan, on September 16 show what appears to be a tense standoff between the president’s daughter and her captors.
President Islam Karimov’s 16-year-old granddaughter is not being held against her will in Uzbekistan, prosecutors have announced, and she is free to leave the residence where her mother, Gulnara Karimova, is under house arrest.
Iman Karimova, an American citizen, “has no relation to the criminal cases under investigation” and there is no “restriction of her rights or legitimate interests, including freedom of movement,” the General Prosecutor’s Office said on September 22.
She is free to go anywhere at any time, including abroad, the prosecutor’s office said in a posting on its website which it described as a response to unspecified media queries. It also confirmed that Iman, who was born in the United States, has the right to her U.S. citizenship.
Iman has been in the Tashkent residence for six months with her mother, who was unofficially placed under house arrest in February and named a suspect in a multi-million-dollar mafia-style corruption case earlier this month.
Forty-two-year-old Gulnara Karimova, who was once seen as a potential successor to her aging father, has stated in letters and recordings leaked to the media that she is being held against her will.
“The territory of the house is basically surrounded now by hundreds of cameras and special equipment which is blocking any means of communication,” she said in recordings leaked to media, including EurasiaNet.org, earlier this month.
Karimova spoke of “tremendous pressure and stress” on herself and her “struggling sick daughter.” Both “need medical help urgently,” she added, for a heart condition in Iman’s case.
Kyrgyzstan’s local government councils are infested with gangsters, according to the Interior Ministry.
Speaking at a meeting of parliament’s Ata-Meken faction on August 20, Interior Minister Abdulla Suranchiev named over 20 figures in local governments across Kyrgyzstan that he alleges have ties to organized crime.
Not all of the councilors Suranchiev named have criminal records. Details on the accused, later relayed by 24.kg, were limited to names, dates of birth and presumed association with alleged criminal leaders such as Kamchybek Kolbayev, Maksat Abakirov and Almas Bokushev.
Cynics believe Ata-Meken party leader Omurbek Tekebayev engineered the expose as a PR stunt ahead of next year’s parliamentary elections. Ata-Meken has suffered serious brand damage since scraping into the legislature in 2010. Political rivals have accused three of its members, including Tekebayev, of looting during the 2010 revolution. Another scandal struck the party in 2012 when it emerged that one of its candidates for a municipal seat in Jalal-Abad Province was a seasoned criminal with the record to prove it.
The Chinese Embassy in Bishkek has called on the Kyrgyz government to end a weeks-old protest that has blocked a strategic road and stranded over 300 trucks near Kyrgyzstan’s border with China. Protestors are demanding the release of a nationalist politician awaiting trial on embezzlement charges.
“Drivers don’t have enough food, the weather conditions threaten their vital security. The Chinese side is worried about the condition of its citizens and asks the Kyrgyz side to take the necessary measures to address the issue and assist in ensuring the safety of [Chinese] citizens,” Interfax quoted the Chinese Embassy as saying this week.
About a hundred protesters have been blocking the main road through southern Kyrgyzstan’s Alai region since May 27, demanding authorities move Kyrgyz parliamentarian Ahmatbek Keldibekov of the nationalist Ata-Jurt Party from pre-trial detention to house arrest. Keldibekov, who is charged with corruption dating to his time as head of Kyrgyzstan’s State Tax Committee, was arrested and stripped of parliamentary immunity last November. If found guilty, he faces more than 10 years in prison. He denies the charges, describing his arrest as politically motivated. Keldibekov had earlier lost his position as parliamentary speaker during a scandal that appeared to tie him to Kyrgyzstan’s most notorious mob boss.
Though Keldibekov’s supporters have rallied several times since his arrest, the ongoing roadblock is their most sustained effort yet to draw attention to his case.
The municipality of Almaty is suing Viktor Khrapunov, a former mayor and a foe of President Nursultan Nazarbayev, in the United States, accusing him of having “systematically looted” millions from city coffers over a decade ago.
Raising questions about why it took the municipality so long to notice the missing millions, the case was lodged in a Los Angeles federal court on May 14, a decade after Khrapunov left the post of mayor and six years after he moved out of Kazakhstan to base himself in a luxury Swiss mansion.
Adding piquancy to the scandal, Khrapunov’s daughter Madina is related by marriage to embattled oligarch Mukhtar Ablyazov, Astana’s public enemy number one.
Discredited former banker Ablyazov is in jail in France battling extradition to Russia on fraud charges, and fighting moves to strip him of political asylum in the United Kingdom.
Madina Ablyazova is named as a defendant in the Khrapunov case along with Khrapunov’s wife Leila and son Ilyas, reports The Courthouse News, a Pasadena-based legal wire service.
Khrapunov – a former Nazarbayev administration insider who held a string of top posts including mayor of Almaty from 1997 to 2004 – “abused his position of trust as a public official in order to convert and sell numerous assets belonging to the City of Almaty for his own benefit and the benefit of his co-conspirators,” the report quotes the lawsuit as saying.
In many post-Soviet countries, and Kazakhstan is no exception, stories abound of students forced to bribe their professors to pass final exams. At last, Kazakhstan has an official figure: On average, students pay 50,000 tenge ($275) in unofficial fees at the end of each semester
Deputy Minister of Education and Science Takir Balykbaev told a meeting of the country's university heads in Almaty on April 29 that higher education is among the three most corrupt industries in the country. The sector’s shadow economy is worth about $100 million per year, Balykbaev said.
Endemic corruption in education has long been acknowledged in Kazakhstan, but actual figures are rare. Freedom House said in its 2013 report on Kazakhstan that “corruption in the education system is widespread, and students frequently bribe professors for passing grades.”
Salaries in Kazakhstan's universities are low, with the exception of Astana's Nazarbayev University and Almaty's KIMEP University, encouraging professors to supplement their incomes by soliciting bribes.
Balykbaev said that in the near future his ministry would establish a council on anti-corruption policy to coordinate the fight against graft in universities.