A corruption scandal has engulfed a high-profile international exhibition that Astana is organizing, just as Kazakhstan enters the final stages of its bid to stage another prominent global event – the Winter Olympics.
Talgat Yermegiyayev, the chief organizer of Kazakhstan’s EXPO-2017 exhibition (which is due to be held in Astana in two years) has been placed under house arrest on suspicion of embezzlement, reports the Today.kz website.
The court ruling was issued on June 12, the day after President Nursultan Nazarbayev had fired Yermegiyayev from his position as chief executive of the Astana EXPO-2017 company, which is organizing the international exhibition. Nazarbayev’s administration has billed the event a major PR coup for Kazakhstan.
Another top EXPO official, Kazhymurat Usenov, who was in charge of the department overseeing construction of facilities for the exhibition, has also been placed under house arrest. He is suspected of embezzling 214 million tenge ($1.2 million) from the $385 million the state has allocated for the $3 billion event.
The corruption scandal has erupted as Kazakhstan enters the final stages in the race to stage the 2022 Winter Olympics, in which commercial capital Almaty is competing with Beijing to host the prestigious sporting event. A vote is due at the end of July.
Kazakhstan's financial capital, Almaty, has deployed an obvious but credible argument in its battle with Beijing to host the 2022 Winter Olympics – its real snow.
The bidding battle is coming to a close as the two finalists made their presentations to the International Olympic Committee (IOC) in Switzerland on June 9. The decisive votes will be cast in Kuala Lumpur, Malaysia, on July 31.
Before the pitches, Almaty was perceived to be lagging behind Beijing in the contest. But a strong performance that focused on its rival's main weakness – a lack of natural snow – drew praise from IOC delegates.
“I was very, very agreeably surprised,” Canadian IOC member Dick Pound told the Associated Press after Almaty's pitch. “I think they attracted the attention of people who may not have been convinced before. It looks to me like they figured out all of the weaknesses of the competitors and they just nailed the differences – snow, water, air, experience.”
The two cities were given a 45-minute presentation slot to impress the delegates followed by a 45-minute question-and-answer session. Almaty’s message was simple: Its mountains, covered in genuine snow, are the ideal backdrop for the Games.
“I think the Almaty presentation scored some points,” U.S. Olympic Committee chairman and IOC member Larry Probst told the AP. “They drove home the message 'keeping it real.' That was all about snow versus making snow. I think that resonates.”
Kazakhstan’s Constitutional Council has struck down a controversial law that would have outlawed “propaganda” of homosexuality to minors, amid signs the legislation was damaging the country’s bid to host the Winter Olympics.
The law was “not in line with the constitution of the Republic of Kazakhstan” the Vlast.kz website quoted the Constitutional Council (which rules on the legality of legislation) as saying.
The law governed “the protection of children from information causing damage to their health and development." It was passed by parliament in February. The council struck down the law because of unclear wording rather than human rights concerns, the Vlast.kz report said.
The announcement came after a group of household-name sports stars urged the International Olympic Committee (IOC) to reject Kazakhstan’s bid to host the Winter Games in Almaty in 2022, arguing that the law outlawing the “propaganda” of homosexuality to minors was incompatible with Olympic principles of equality.
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.
Kazakhstan's chances of hosting the 2022 Winter Olympics took a turn for the better this week as Norway announced it was withdrawing Oslo's bid, leaving only Almaty and Beijing interested in hosting the expensive extravaganza.
Norway pulled out of the race on October 1 citing a lack of public support for the costly venture. This year's Sochi Winter Olympics, in Russia, came in way over budget at $51 billion. The fear of ballooning costs has seen the number of contenders to host the 2022 Games dwindle from six to just two.
With Kazakhstan's economy under pressure from the downturn in close partner Russia, the country’s Olympic Committee will need to carefully watch its budget. So far, Kazakh officials are confident they can keep costs for the Almaty bid down as the city already has much infrastructure required for the Games. It has facilities built for the 2011 Asian Winter Games and is currently splashing out $1 billion on amenities for the 2017 Winter Universiade, which brings together student athletes from around the world.
Kazakh officials see the hosting of high-profile events like the Winter Olympics as great PR. “As government officials we are working hard to attract investments and being in a country recognized all over the world is very good for attracting investments,” Kairat Kelimbetov, chairman of Kazakhstan's National Bank, told TengriNews in August.
Amid the cut and thrust of the sporting competition in Sochi, Kazakhstan's Olympic officials have been busy schmoozing to build support for Almaty’s bid to host the 2022 Winter Olympic Games.
The Kazakh Olympic Committee has opened a hospitality center in the heart of Sochi’s Olympic Park, offering visitors the chance to try delicacies such as kazy (dried horsemeat sausage), karta (made from the animal’s large intestine) and kurt (a dried curd snack), and watch some video presentations detailing Almaty's bid.
One notable visitor was Thomas Bach, president of the International Olympic Committee, who told Kazinform he is confident Almaty is a strong contender and praised Kazakhstan's athletes—although they have not performed as well as some expected, with figure skater Denis Ten's bronze thus far Kazakhstan's only medal.
Kazakhs officials played down fears of excessive costs after spending on Sochi 2014 broke record after record. “It will not be a big budget,” Andrey Kryukov, an executive board member of the Kazakh Olympic Committee told reporters in Sochi on February 20, eager to demonstrate Kazakhstan’s frugality, which Sochi has made fashionable.
Early estimates from Kazakhstan's Olympic Committee put the costs of hosting the 2022 Games at around $5 billion, a modest sum compared with Sochi 2014, which President Vladimir Putin pitched at $12 billion but ended up costing an embarrassing $51 billion—the most expensive Olympics in history and more expensive than all previous Winter Games combined.
Tashkent is maintaining a stony silence over the fate of wrestler Soslan Tigiev. This week, the International Olympic Committee (IOC) stripped the Uzbek of his Olympic bronze medal after he tested positive for a banned substance. Thus far, official media outlets in Uzbekistan have failed to cover the story.
Private media outlets, including olam.uz and gazeta.uz, have carried the IOC press release detailing the facts, but have refrained from making any comment. While these outlets are privately owned, they toe the official government line when it comes to reporting. Uzbek government mouthpiece Narodnoye Slovo and the Foreign Ministry's information agency, Jahon, have studiously ignored any reference to the embarrassing case.
Tigiev took bronze in London this summer in 74kg freestyle wrestling, adding to the silver he won in Beijing in 2008. The IOC reported on November 7 that it was stripping Tigiev of the London medal after he tested positive for the prohibited substance methylhexaneamine in an August 10 urine sample. The IOC asked for the immediate return of his medal, diploma and medallist pin.
Since July, Astana and Beijing have engaged in an emotional rivalry over Olympic gold medalist Zulfiya Chinshanlo. During the London games, Chinese media were adamant that the weightlifter was about to return to the People’s Republic, claiming that Chinshanlo was born Zhao Changling in a remote mountainous area of Hunan Province and had been loaned to Kazakhstan in 2008 for a five-year period.
But Chinshanlo told Kazakh press after earning Kazakhstan a gold that she was committed to the Central Asian republic. Moreover, Chinshanlo’s biography on the official Web page for the 2012 Olympic Games lists her birthplace as Almaty. (Others report she was born in Kyrgyzstan.)
Now Chinese media have quoted her saying she’s returning to China.
China Radio International's English website reported on October 24 that the champion weightlifter was spotted in Hunan applying for papers to return to China.
She had a different story to tell Kazakh media, however, claiming on October 26 she was merely paying a visit to her former coach in Yongzhou, Hunan, where a Caravan.kz article says she took up weightlifting as an 11-year-old.
With the dust now settling on the London Olympics, Kazakhstan has emerged as the undisputed Central Asia champion, finishing a laudable 12th in the overall medal table, up from 29th four years ago in Beijing. Uzbekistan and Tajikistan also made it to the winner’s podium.
But besides the considerable costs of training and putting athletes forward for Olympic glory, what have the wins cost Central Asia’s thin pocketbooks? Leaders across the region promised more than fame to athletes who could score a medal in London, including cash prizes, apartments and luxury cars.
In Kazakhstan’s case, the cash prizes to be doled out total over $2 million – $250,000 for each of seven golds, $150,000 for one silver, and $75,000 for each of five bronzes. Uzbekistan will fork out $100,000 to its gold winner, 120-kilogram freestyle wrestler Artur Taymazov, and $50,000 to each of three bronze winners. It’s not clear what Tajikistan was offering its bronze winner, however. President Emomali Rakhmon set the prize for gold at $63,000. But the Dushanbe mayor and the opposition Islamic Renaissance Party each promised female boxer Mavzuna Chorieva – who won a bronze – an apartment.
Team Kazakhstan hasn’t bothered with anything but gold at the London Olympics, doubling its haul of first-place medals over the weekend to place fifth in number of gold medals per capita.
Former husband-and-wife team Ilya Ilin and Svetlana Podobedova triumphed in the weightlifting arena. Ilin set a new world record when he hefted 418 kilograms, a 12-kilo improvement on his gold-winning lift in Beijing in 2008. The two-time Olympic champion attributed his success to the supplies of kazy – smoked horsemeat sausage – that Kazakhstan brought to London.
Podobedova triumphed in the 75-kilogram division for her adopted country. She left her native Russia in 2007 after she was cut from the national weightlifting team for a doping offense. The Russian authorities refused to allow her to compete for Kazakhstan in the 2008 games, but now she has gotten revenge by narrowly beating Russia's Natalya Zabolotnaya to take the gold.