Tajikistan’s anticorruption agency says it has uncovered an alleged embezzlement scheme at state bank Amonatbank, suggesting the crisis gripping the country’s lending sectors extends beyond just the lack of liquidity.
The deputy chairman of the Agency for State Financial Control and Combating Corruption, Davlatbek Hairzoda, said last week that the scheme has cost the government 31.6 million somoni ($4 million). Four bank employees are under investigation.
The timing is unfortunate since dwindling faith in the country’s private banks in Tajikistan has been driving many people to move their money to an institution perceived as being underpinned by state support.
Amonatbank chief executive Ruhullo Hakimzoda revealed last month that the banking crisis has compelled many state and private enterprises to move their business to his bank.
In the first half of 2016, Amonatbank’s client base for salary payments and bank card services increased by 20 percent, Hakimzoda said. No surprise there since workers whose wage packets are serviced by banks like troubled private lender Tojiksodirotbank have experienced severe complications in getting hold of any of their cash.
“Besides that, Amonatbank has seen an 11.8 percent increase in deposits, which is mostly accounted for by an outflow from other banks,” Hakimzoda said.
More customers has not translated into profits. Hakimzoda said losses in the first six months of the year came in at 6 million somoni ($760,000).
With the presidential election coming into view in Kyrgyzstan, parliament is bracing to effect new changes to the constitution — the eighth round of amendments since the country earned independence.
Speculation about possible tinkering with the founding law has been brewing since 2014. President Almazbek Atambayev stoked talk of imminent action at an end-of-year press conference in December, when he argued constitutional changes were necessary to successfully implement judicial reform.
“Sooner or later, the amendments are needed. If we want normal courts, we will have to change the constitution. Of course, the essence of it cannot be changed, we have to follow the path we chose,” Atambayev said.
Atambayev has repeatedly stated he has no plans to change the constitution to remain in power or become the prime minister after his term ends in 2017, so that remains off the table for now.
The latest constitutional initiative has ostensibly been spearheaded by members of parliament, who insist the consideration of their package of changes should be considered this fall. The MPs comes from four parliamentary factions: the Atambayev-linked Social Democratic Party (SDPK), the Kyrgyzstan Party, Onuguu-Progress and the Respublika-Ata Jurt opposition party.
There are about 30 amendments in play touching on areas including human rights and the authority of parliament, the judiciary, the president and the prime minister.
President Ilham Aliyev at the opening of the Araz munitions plant in Shirvan in 2010. (photo: Ministry of Defense Industry of Azerbaijan(
Azerbaijan's government has responded with uncharacteristic solicitousness to an explosion at a state munitions factory that killed two workers and injured 24 more, underscoring the importance the state places on its defense capacity.
The explosion occurred at the Araz munitions plant in the city of Shirvan, southwest of Baku, on July 26. Azerbaijani authorities said it was caused by a stockpile of old ammunition that had been slated for disposal.
The government's response was swift and active: the Minister of Defense Industry Yavar Jamalov visited the injured at the hospital and went to the funerals of those killed. The ministry's press service is releasing regular updates on the health of the injured. An investigative commission was formed and the state prosecutor's office opened a criminal case. This level of responsiveness is unusual for a government that tends to rule in a distant, imperious manner and to punish the messengers who call attention to bad news in the country.
It’s election time in Georgia and, once again, just like summer swallows, accusations about political pressure have returned. This time, though, they come from the head of state himself, with the chairperson of Georgia’s highest court further broadening their scope.
Such allegations come at a sensitive time for the ruling Georgian Dream, which faces an October 8 parliamentary election. The coalition came to power in 2012 after itself facing down various forms of pressure from then President Mikheil Saakashvili’s administration. The group has long maintained that it doesn’t get up to the same sort of tricks.
But some seem to think that depends on the alleged violation. A senior Georgian Dream lawmaker this week suggested that President Giorgi Margvelashvili had been drunk when he claimed that a police run-in with a family member was meant to intimidate him. “He must’ve had a little too much on that day,” said Deputy Parliamentary Speaker Manana Kobakhidze.
Around 200 oil laborers in the western Kazakhstan city of Zhanozen mounted five straight days of strike actions last week in protest at their employers’ plan to reduce working hours and cut salaries.
Memories are still raw in the city of events in December 2011, when a lengthy sit-in by striking oil workers culminated with unrest that was crushed with force by police, leaving more than a dozen dead.
The protest by employees of drilling company Burgylau took the form of them dropping tools for two hours daily. Notably, some of this news is being reported by loyal to the government, which represents a stark difference to 2011, when state media largely ignored industrial unrest in Zhanaozen.
One of the workers’ complaints is related to a string of what they are unfounded dismissals. Around 60 people have been fired in recent times, protesters said.
There is also unhappiness about the performance of trade unions. Workers have said the union has failed to address their complaints and they are demanding a change to the leadership. Unions in Kazakhstan are typically largely toothless bodies that do the companies’ bidding. Employees at Burgylau have said they want transparent reports on how their monthly 2,000 tenge dues to the body are being spent.
The union has defended itself from criticism, saying the strikes are unfounded and that rumors of unlawful dismissal were little more than rumors. It also said that it has received no reports that complaining workers are facing intimidation from the company, as has been claimed.
Unlike in much of the former Soviet Union, young men in Uzbekistan clamor to do military service, and the competition is so intense that authorities have introduced stringent new entrance requirements.
Officials estimate that only one out of every 10 hopeful applicants is successful.
A decree published this week on legal affairs website Norma.uz contains all the details. The fitness section comprises three routines: chin-ups, a 100-meter dash and a 3,000-meter run. Next comes a three-part written exam testing knowledge of math, and Uzbek language and history.
Enrolment takes place just once annually and hopeful conscripts can apply only once.
The relative prestige associated with doing obligatory service in Uzbekistan dates back to reforms enacted in 2008, when the length of service was reduced from 24 months to 12. Wages paid to conscripts were also raised.
There are numerous correlated benefits to serving. One is that it increases chances of getting government jobs or the professional army itself, where positions are also highly sought after for the perks. The Defense Ministry has said that between 2007 and 2015, it allocated more than 3,000 apartments to servicemen and their families.
With unemployment a chronic problem in Uzbekistan, any path to regular, respectable and well-paid work is eagerly pursued.
Those that have completed military service are also eligible to receive additional benefits while completing their university studies.
Perhaps most importantly, it would appear that Uzbekistan has been fairly successful is clamping down on hazing in the armed forces. The systematic bullying that occurs across the former Soviet Union is typically compounded by long terms of conscription and low levels of professionalism.
Two whisteblowers have gone public with allegations that Georgia's Ministry of Defense is loaded with unqualified officials who were appointed only because they were political allies of the minister, and that ministry officials are using their posts to promote the minister's political party.
While this sort of behavior is common in post-Soviet government structures, including in Georgia, it is relatively rare for allegations like this to be made publicly. And the claims could damage Georgia's reputation as a reform-oriented state aiming to join Western structures like NATO.
The two MoD employees made the allegations at a press conference in Tbilisi this week. Senior officials have been appointed illegally, not through open and transparent "Western-style" competition, but through a system of nepotism and party patronage, said Beka Kiria, a senior specialist at the ministry's Defense Policy and Planning Department. The minister, Tina Khidasheli (who has just stepped down for unrelated reasons) is a member of the Republican Party.
In addition, the Strategic Communications section of the ministry has devoted all of its resources to promoting party leadership rather than the activities of the ministry, said Mariam Takaishvili, head of the ministry's section on Communication with NATO and International Organisations. Both officials said they had been reprimanded for complaining about these issues internally.
The Ministry of Defense has not publicly responded to the allegations.
The organizers of the second edition of the World Nomad Games, to be held in Kyrgyzstan in September, have released a handsomely promotional video that is likely to whet the appetite of lovers of traditional sports.
The promo makes ample use of Kyrgyzstan’s remarkable natural beauty and draws on some familiar motifs, from the horseback archer to lashings of kumys.
This is Culture Ministry’s second attempt at a promotional campaign. A video released in May came under sustained criticism after internet sleuths discovered some footage had been filched from other filmmakers. This time around, the producers have outdone themselves and created a brief video that could just as well serve as an advertisement for Kyrgyzstan’s tourist board.
The World Nomad Games run from September 3 through to September 8 and will be held on the Issyk-Kul Lake resort town of Cholpon-Ata. The competition includes 23 types of sports and a variety of other cultural events intended to celebrate the heritage of nomadic culture. Organizers say competitors from more than 40 countries will participate.
The inaugural edition of the games, also held at Cholpon-Ata, took place in 2014 and drew contestants from 19 countries, including all the ex-Soviet Central Asian nations, Afghanistan, Mongolia, Turkey, Russia and some other less likely suspects like Brazil, Sweden and South Korea. (Some sources put the number of participating countries quite a bit lower, but who’s counting?)
The only suspect in the recent spate of shootings in Kazakhstan’s business capital, Almaty, has told investigators his only targets were people involved in the law enforcement system and that he avoided attacking civilians.
Ruslan Kulekbayev told his interrogators, according to transcripts obtained by Vremya newspaper and published on July 27, that his motivation was revenge and that although he is a devout Muslim, his actions were not religiously inspired.
“I wanted to take revenge on judges, prosecutors and police officers because I consider my (previous) convictions unfair. First I went to the Almaly district court, but I saw nobody in uniform there. From there I went to the Almaly police precinct and the first person I saw was the guy who came through the security checkpoint,” Kulekbayev reportedly told interrogators.
The Vremya profile of the suspected 26-year old attacker is highly detailed and describes a serial recidivist whose background shares features with the typical violent radical extremist as described Kazakhstan’s authorities, although distinct in some respects.
Kulekbayev first criminal conviction came in 2010, when he received a three-year suspended sentence for robbing a jeweler. In February 2012, he was detained at the railway station in his native city of Kyzylorda in possession of a pistol and religious literature. Kulekbayev said that although he prayed, he had no link to extremist groups.
Kazakhstan’s national currency has taken a fresh tumble this week, provoking a new cycle of anxiety.
On July 20, the official exchange stood at 338 tenge to the dollar, but that had officially slid by July 28 to more than 350. As has become customary, however, street exchange shops are buying dollars at slightly higher rates, depending on the location. There were reports of a 365 rate in the capital, Astana.
Predictably, the slide has dominated news coverage and discussions on social media. Some comments under a piece on news website Nur.kz are illustrative.
“My pension savings are going to become toilet paper,” wrote one reader.
“Today I took my car to be repaired. The work has been estimated at 26,000 tenge. Now, because of the fall of the tenge, the cost has been changed to 37,000. And they haven’t put up our salaries,” wrote another.
Kazakhstanis are growing used to devaluation of their currency, not that it gets any easier. Rather than sliding gradually, the tenge has historically been allowed to plunge in one-off drops, as happened in February 2009, February 2014 and August 2015. Since that last drop, however, the currency has been allowed to float freely, adding a strong element of unpredictability.
The National Bank, which has become target of much popular criticism, defended itself from attacks on July 26.
Adil Muhamedjanov, director of the monetary operations and asset management department at the National Bank, told Tengri News that the free-float policy allowed for daily volatility according to numerous factors — primarily the price of oil and currency markets in Kazakhstan’s main trading partners.