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.
Kazakhstan’s troubled BTA Bank, formerly run by fugitive oligarch Mukhtar Ablyazov, is still crippled by bad loans more than four years after Astana grabbed the financial institution and sent Ablyazov fleeing abroad, a new study shows.
A staggering 81 percent of BTA Bank’s credit portfolio is made up of non-performing loans (those on which payments are 90 days late or more), according to research by Kazakhstan’s Kursiv business newspaper.
As the International Monetary Fund (IMF) has pointed out over and over again, bad loans are the plague of Kazakhstan’s financial system: The IMF said in June that non-performing loans make up around 30 percent of the total in Kazakhstan’s financial system.
But BTA Bank has by far the highest total, not only in terms of ratio to its credit portfolio but also in monetary terms: Its non-performing loans total 1.7 trillion tenge (around $11 billion), Kursiv’s study, based on data from June 1, shows.
Alliance Bank had the second-largest ratio of bad loans in its credit portfolio (47 percent), followed by ATF Bank (46 percent). Kazkommertsbank had the second largest in monetary terms: 660 billion tenge ($4.3 billion), or 28 percent of its loan portfolio.
BTA Bank was forcibly nationalized in 2009 and Ablyazov, who chaired it and owned it through an undeclared holding, fled to London. There he was sued by his former bank for allegedly defrauding it of some $6 billion.
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.
Fugitive Kazakh oligarch Mukhtar Ablyazov has been dealt a serious blow in a massive fraud case brought against him in London’s High Court by Kazakhstan’s BTA Bank: Ablyazov has been debarred from fighting BTA’s accusations that he pilfered $6 billion, reports The Lawyer.
Barring a successful appeal, the November 6 ruling sounds the death knell for Ablyazov’s hopes of clearing his name. His reputation also took a hit from the judge’s condemnation of Ablyazov’s attitude to the court: “It is difficult to imagine a party to commercial litigation who has acted with more cynicism, opportunism and deviousness towards court orders than Mr. Ablyazov.”
Ablyazov left Kazakhstan for London in 2009 after Kazakh authorities forcibly nationalized BTA Bank, which he headed and owned through an undeclared stake.
BTA sued Ablyazov for embezzlement in London. The oligarch went on the run after the High Court in February handed him a 22-month prison sentence for contempt of court for concealing assets. His whereabouts are unknown.
If Ablyazov loses his planned appeal, BTA can move to seize his assets, which – according to the British press – include a $29-million nine-bedroom mansion on The Bishop’s Avenue, a London street so exclusive it is dubbed Billionaires’ Row.
Grigoriy Marchenko, chief of the National Bank of Kazakhstan, has emerged as a surprise contender for the hot seat at the International Monetary Fund. The previous head, Dominique Strauss-Kahn, stepped down this week amid allegations he attacked a hotel maid in New York.
The CIS Heads of Government Council put Marchenko's candidacy forward at their summit in Minsk on May 19 as the preferred candidate on behalf of the post-Soviet Union bloc. He received further endorsement from Kazakhstan's Prime Minister Karim Masimov at the EBRD's annual gathering in Astana on May 20.
Marchenko, 52, is a career banker who has done time inside both state and private banks. At the helm of the Kazakhstan's central bank since January 2009, and from 1999 to 2004, CIS bank chiefs see him as a safe pair of hands. Since resuming that position, he has carefully steered the Kazakh economy through the global financial crisis and overseen a series of controversial bank bailouts.
Given the basket-case economies of the other CIS member states, Marchenko looks like a rational choice. Though by tradition the IMF's top job is reserved for a European -- with the World Bank top slot reserved for Americans -- there have been some calls to break this European stranglehold. A candidate from Kazakhstan, which straddles both Europe and Asia, could provide a suitable compromise.