Nordic telecoms giant TeliaSonera is at the heart of several international corruption probes involving its activities in Uzbekistan. Now it says it may have broken the law in neighboring Kazakhstan and other countries, as well.
An external review of TeliaSonera's dealings in five countries has found that “several transactions, and actions during [2007-2013] have been conducted in a manner inconsistent with sound business practice and TeliaSonera’s ethical requirements,” board chair Marie Ehrling told an Annual General Meeting on April 2.
“It cannot even be ruled out that certain conduct has been in violation of the law,” she said.
The review, commissioned last April and conducted by international law firm Norton Rose Fulbright, covered Nepal, Kazakhstan, Azerbaijan, Tajikistan, and Georgia but focused mainly on the first three countries.
Ehrling did not specify which transactions may have been unethical or illegal, but said the review mainly concerned the “establishing of operations and acquisitions of companies and licenses.”
Areas of concern included “substantial payments to advisors and intermediaries for, among other things, lobbying activities; lack of control of business partners; and inadequate handling of warning signs.”
“One area singled out is the inadequate governance of the Eurasian operations,” Ehrling said.
After a spectacular, months-long campaign to discredit her mother, her sister, and Uzbekistan’s secret police boss, the elder daughter of Uzbek strongman Islam Karimov went silent in mid-February. Reports that Gulnara Karimova has been held against her will could not be independently confirmed, but she’s been unavailable for comment as prosecutors in two European countries have named her as a suspect in corruption investigations.
Now the BBC says it has received a letterthat appears to be from Karimova. In it, the author claims she is under house arrest in Tashkent and has been beaten by men working for her notoriously brutal father.
"I am under severe psychological pressure, I have been beaten, you can count bruises on my arms," reads the letter, apparently smuggled out, which the BBC reproduced in part on March 24. "How naive I was to think that the rule of law exists in the country.”
A graphologist specializing in Cyrillic handwriting told the BBC that there is a 75 percent chance the unsigned letter was written by the scandal-plagued Karimova, Uzbekistan’s former ambassador to the United Nations, who describes herself on her website as a “poet, mezzo soprano, designer and exotic Uzbekistan beauty.”
"I never thought this could happen in a civilized, developing nation that Uzbekistan portrays itself as," the letter says, complaining of "Pinochet-style persecution."
Hot on the news that Gulnara Karimova, daughter of Uzbekistan’s strongman president Islam Karimov, is a formal suspect in a Swiss money-laundering investigation, embattled Nordic telecommunications giant TeliaSonera has become the target of a related corruption probe in the United States.
“TeliaSonera has been informed that the U.S. Department of Justice (DOJ) has an ongoing investigation regarding TeliaSonera’s transactions in Uzbekistan,” the company said in a March 17 statement. “The DOJ has sent a request for documents to TeliaSonera. In addition, TeliaSonera has received a request from the U.S. Securities and Exchange Commission (SEC) to submit documents and information related to Uzbekistan.”
The company made the announcement five days after revealing that two of its daughter companies, TeliaSonera UTA Holding B.V. and TeliaSonera Uzbek Telecom Holding B.V (the holders of TeliaSonera’s operations in Uzbekistan, where it operates the Ucell brand), are under investigation in The Netherlands in a bribery and money-laundering case.
“Dutch authorities have requested collateral for any financial claims which may be decided against TeliaSonera UTA Holding BV,” TeliaSonera said on March 17, adding that the request for collateral stands at 10-20 million euros.
Switzerland's Office of the Attorney General (OAG) is investigating Gulnara Karimova, the scandal-embroiled eldest daughter of Uzbekistan's strongman president Islam Karimov, on suspicion of money laundering, it said on March 12. The news comes as another blow to Karimova, who has been embroiled in a public feud with powerful rivals in Uzbekistan since last fall.
The OAG statement said that Karimova had come under suspicion following the arrest in July 2012 of two Uzbek nationals in Geneva and the subsequent opening of a money-laundering probe in Switzerland targeting four Karimova associates.
Karimova could not at the time be made a suspect because of the “diplomatic immunity she benefited from until last summer,” the OAG said. She was made a formal suspect on September 16, after losing her immunity last July along with her post as Uzbekistan’s ambassador to the UN in Geneva.
The money-laundering probe is focused on “acts presumed illicit having taken place in the telecommunications market in Uzbekistan,” which are considered the “initial breaches” of the law in the Swiss money-laundering case, the statement added.
Prosecutors in Uzbekistan say that they have summoned for questioning associates of the president's controversial daughter, businesswoman and aspiring pop star Gulnara Karimova. It is unclear if the investigation concerns Karimova directly, but it follows a spectacular public fall for the woman once believed in line to succeed her aging father.
In a statement late February 17, the Prosecutor General's Office in Tashkent said that Rustam Madumarov, Gayane Avakyan and Ekaterina Klyuyeva had been summoned for questioning as part of a criminal investigation into tax evasion, concealing foreign currency and other crimes opened against executives of Terra Group, Prime Media and Gamma Promotion.
Terra Group is believed to have been Karimova’s media holding company, overseeing her TV and radio stations and glossy magazines until authorities shut them down last October. That happened during a public conflict with her sister, mother and the head of Uzbekistan's secret police, the SNB, much of which played out on Twitter. Until the struggle spilled into the open, Karimova had been seen as a potential successor to her brutal 76-year-old father, Islam Karimov, who tolerates no dissent and does not discuss his plans for succession.
An obscure offshore oil and gas company is reportedly under investigation for stealing oil in Uzbekistan. The news will come as no surprise to the few brave Western investors still operating in the business-unfriendly Central Asian state, where a major redivision of spoils appears underway as President Islam Karimov’s once-powerful daughter comes under unprecedented attack.
Authorities have launched an investigation into an alleged theft of government-owned oil by Tethys Petroleum, Russia's RIA Novosti news agency reported on December 4, quoting an anonymous source. The firm, which denies wrongdoing, announced the launch of new oil and gas prospecting projects in the country only six months ago.
RIA Novosti said the company had been accused of stealing oil worth between $30 million and $40 million. Bakhrom Salakhitdinov, identified as the head of Tethys's operations in Uzbekistan, has been arrested, the news agency added.
Tethys calls the allegations “entirely without foundation.”
“We are in contact with the relevant authorities in order to reach an understanding of the reasons for the allegations and a satisfactory resolution of the situation as soon as possible. We are exploring all appropriate means to protect the company’s interests and ensure the safety of our employees in Uzbekistan. Oil production continues as normal,” the company told EurasiaNet.org via email.
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.
One of Gulnara Karimova's November 21 Twitter missives.
After spending most of the day airing her family’s dirty laundry on Twitter – shedding light on the murky world of clan politics in Tashkent – Gulnara Karimova, the eldest daughter of long-serving strongman Islam Karimov, has gone quiet.
On November 21, Karimova again took to one of the few public channels she can still access, Twitter, to accuse her mother Tatyana of organizing the spectacular personal implosion that has riveted Central Asia watchers for the past month.
Within hours, the account @GulnaraKarimova, which is widely believed to be authentic, disappeared.
Karimova had earlier sent a series of tweets containing image files, each with a long text in Russian. EurasiaNet.org downloaded the nine image files before the account disappeared. One example can be found to the right.
Karimova tweeted that the "women in our family" resent her and are plotting against her. "I have long wanted to tell my mother about this...She has promised to destroy everything connected to me if I dare 'meddle in her affairs'!"
Karimova said the October arrest of her cousin Akbarali Abdullayev – sometimes described as her “purse” – had been ordered by her mother in a bid to take over Abdullayev’s business interests in the Ferghana Valley.
When Karimova tried to help her cousin by interceding with her father, she said, her mother
"snatched [his assets] and imprisoned him in October 2013 for an unknown period, promising to destroy me for this!"
First authorities shut her television and radio stations in Uzbekistan’s capital, Tashkent. Then they went after her network of stations around the country. Now Gulnara Karimova, the beleaguered elder daughter of Uzbekistan’s president, says someone is trying to force her into exile.
Radio Ozodlik (Radio Liberty’s Uzbek Service) reported this week that the broadcasting licenses of five non-governmental television network-operated channels (NTT) in Kashkadarya, Fergana and Bukhara regions and Karakalpakstan were suspended on November 1. An executive from one of the affected stations told Ozodlik that 80 percent of Uzbekistan’s non-state-run television stations are now off air.
Karimova is believed to have controlled these channels through Firdavs Abdukhalikov, her former spokesman. Abdukhalikov's whereabouts are unknown. He was last seen at the opening of Karimova's annual Style.uz arts festival on October 22, Ozodlik said. A new suspiciously detailed report by a name that few believe belongs to a real person – possibly a pseudonym used by the security services, acting alone or in collaboration with exiled opposition leader Muhammad Solih – says he is being held by the secret police.
It's no surprise Gulnara Karimova, the eldest daughter of Uzbekistan’s president, has enemies. Described as a “robber baron” by a leaked US diplomatic cable, she encourages speculation she wishes to succeed her father, 75-year-old Islam Karimov.
Now she says “they” have tried to kill her.
Amid mounting scandals in recent weeks – a public feud with her sister and a blackout at her media empire, for starters – Karimova tweeted on October 31 someone is trying to poison her and she knows who it is.
“[They’ve] already tried to poison me with heavy metals like mercury. Thank God, they have not killed me, although I am still receiving treatment,” she wrote, without elaborating.
Asked by a follower whether she knew who the culprit was, Karimova replied, “Yes.....”
She did not unmask the failed assassin. Many will assume the Tweet was yet another one of her attention-grabbing antics. But in recent days she has repeatedly attacked the head of the National Security Service, Rustam Inoyatov, whom she accuses of trying to seize power.