Tag Archives: corruption

Kazakh police arrest pension fund chiefs on corruption allegations

ALMATY, JAN. 6 2017 (The Conway Bulletin) — A Kazakh court ordered the arrest of the state pension fund’s top managers on corruption allegations, severely denting the public’s trust in one of the state’s flagship financial organisations.

The arrest of the pension fund’s chairman, Ruslan Erdenaev, the director of financial risk management, Musa Bakhtov, as well as two directors from two different mining companies, is just the latest in a series of high profile corruption cases in Kazakhstan which have even included a former economy minister.

And ordinary Kazakhs, who are already struggling to deal with the impact of a sharp economic downturn that has wiped 50% off the value of the tenge, destroyed jobs and savings, are voicing their frustrations increasingly vocally.

In Almaty, Inna Kisilenko, a mother of a six-year-old boy, shrugged her shoulders.

“Time will tell,” she said. “But honestly I feel doubtful. They [the government] increases the pension age and makes up other things.”

The pension fund arrests were ordered after the Central Bank asked the security services to investigate a deal between the fund and two mining companies worth 5b tenge ($15m) in November.

And the $20b pension fund is a particularly sensitive issue in Kazakhstan. It was created in 2014, when the government forced banks to merge their pension funds into one single state-controlled unit. Kazakhs questioned the motive of such a move. This grumbling turned to outrage when news emerged in the summer that the fund had lent members of the elite cash to finance construction of a shopping centre.

Natalya, 50, summed up people’s feelings.

“I just don’t trust it [pension fund],” she said. “I think it is not right because times are hard. I think about how elderly people survive with their pension money. Everything is getting more expensive, rent, groceries.”

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Kazakh police arrest ex-economy minister

ALMATY, JAN. 10 2017 (The Conway Bulletin) — Police in Kazakhstan arrested the former economy minister, Kuandyk Bishimbayev, for alleged links to a corruption scheme at the country’s state-owned Baiterek holding company.

Kazakh president Nursultan Nazarbayev sacked Mr Bishimbayev, 36, as economy minister on Dec. 28.

He had only been in the job since May. for the previous three years he had been chairman of Baiterek holding company which administers the state’s shareholdings in various companies.

Several senior executives at Baiterek have been arrested over the past few weeks on bribe-taking allegations. The main focus is Baiterek Development, the holding company’s real estate unit.

Kazakhstan has been hit by several high-profile corruption scandals in the past year.

ENDS

(News report from Issue No. 312, published on Jan. 13 2017)

Fertiliser corruption unfolds in Armenia

DEC. 1 2016 (The Conway Bulletin) — Armenia’s State Commission on the Protection of Economic Competition said the government had wasted millions of dollars after it gave a contract in 2012 to a single company called Berriutyun to supply fertilisers across the country. There had previously been multiple suppliers. The commission said Berriutyun, linked to a former finance minister, had artificially increased prices by 36%.

ENDS

(News report from Issue No. 307, published on Dec. 2 2016)

Rumours swirl over Gulnara’s death in Uzbekistan, some people want her to return

TASHKENT, NOV. 25 2016 (The Conway Bulletin) — If there is a shadow hanging over the presidential election in Uzbekistan and the apparent smooth handover of power to Shavkat Mirziyoyev coupled with warmer neighbourly relations, it is the figure of Gulnara Karimova.

Very little has been heard of Uzbekistan’s self-styled diva since she was placed under house arrest in Tashkent in March 2014. She had been the preferred successor of her father, Islam Karimov, but fell from grace after police forces in Europe started investigating her financial affairs. It emerged she had been taking bribes worth hundreds of millions of dollars from foreign telecoms firms.

Unlike her sister and mother, who have been pictured mourning and have set up an institute in Karimov’s name, Ms Karimova has hardly been mentioned in news coverage since her father’s death on Sept. 2.

That is until a Russian language website which specialises on reporting on Central Asia, centre1.com, quoted an unnamed member of the Uzbek security forces as saying that she had been poisoned at the start of November and buried in a shallow grave (Nov. 22).

The centre1.com story was widely sited across the media until her London-based son, also called Islam Karimov, released a statement two days later saying that she was alive and well.

“These are just rumours. She’s alive and still bound to a house arrest sentence ,” he told the BBC.

Even so, Ms Karimova has still not been seen in public.

On a trip to Tashkent last month by the Bulletin, though, it was clear that she still carries a degree of support from ordinary people, despite Western media referring to her as the most hated person in Uzbekistan – a reference based on a 2005 diplomatic cable sent from the US embassy in Tashkent to Washington.

Umida, 22, a Tashkent-based student, said that it would be good if the glamorous Ms Karimova returned to public life.

“Gulnara did lots of useful things in the sphere of culture and education and gave many opportunities to young people,” she said.

Dilmurad, 28, agreed. “I don’t know whether the accusations about her are right or wrong, but I would like to see many of the social projects she organised, the Forum Foundation, Art Week Style, Marathons, Fighting Breast Cancer, being held once again.”

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

Kazakh police arrests senior officials

NOV. 17 2016 (The Conway Bulletin) — The deputy head of the government’s Baiterek development corporation, Aslan Jakupov, was arrested with two other people for taking bribe of a around $80,000 over a house-building contract in Pavlodar, media reported. Media said that Aslan Jakupov is the son of a senior Kazakh MP. The case shows just how ingrained corruption is in Kazakhstan. The prosecutor said that Mr Jakupov was suspected of taking a series of bribes from construction companies in deals across the country.

ENDS

(News report from Issue No. 305, published on Nov. 18 2016)

Kazakh police detains Aktobe FC chief

NOV. 9 2016 (The Conway Bulletin) — Anti-corruption police in Kazakhstan detained Dmitriy Vasilyev, director at Aktobe Football Club, for embezzling 300m ($882,000) of public funds, official media reported. Mr Vasiliyev allegedly paid illegal premiums for Aktobe’s performance in Kazakhstan’s Premier League. FC Aktobe is owned by the finance department of the local government.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

Uzbek businessman complains to President

NOV. 8 2016 (The Conway Bulletin) — In a televised show, Olim Sulaimanov, director of a small trading company in Uzbekistan, explained how his company had been raided by Uzbek police, Eurasianet reported. Mr Sulaimanov, whose company exports fruits and vegetables to Russia, appealed to acting-President Shavkat Mirziyoyev to unfreeze his company’s assets.

ENDS

(News report from Issue No. 304, published on Nov. 11 2016)

US Court postpones decision on Uzbekistan’s late-President daughter

NOV. 3 2016 (The Conway Bulletin) — A US judge postponed a final decision on the handling of illicit funds accumulated by Gulnara Karimova, daughter of Uzbekistan’s late-President Islam Karimov. Judge Andrew Carter ordered that the US and Uzbek parties will have to reach an agreement by the end of January 2017, a three-month extension on the previous deadline that expired on Nov. 2. The funds, around $600m which a US court had ring- fenced as illegal under the Foreign Corrupt Practices Act, are currently held in a Swiss bank account.

ENDS

(News report from Issue No. 303, published on Nov. 4 2016)

Comment: Support rises for Armenia daredevil protesters, says Demytrie

OCT. 28 2016 (The Conway Bulletin) — When Armenian gunmen calling themselves the Daredevils of Sassoun after a group of lionised 8th century freedom fighters seized a police compound in Yerevan in July, the world’s attention was focused on another story unfolding next door – an attempted coup in Turkey.

Yet what took place in Armenia was an unprecedented strike against the state. Veterans from a war in the 1990s between Armenia and Azerbaijan over the disputed region of Nagorno-Karabakh, the so-called Daredevils held police officers and medics hostage for two weeks before surrendering to the authorities without a fight.

But, by then, thousands of Armenians had come out onto the streets to express their solidarity with the gunmen.

In the eyes of the authorities the gunmen were criminals, official media described them as terrorists. Three policemen died during the siege, afterall. But on the day of their surrender, supporters gathered outside the Opera House in central Yerevan chanting their names and calling them heroes.

One long-term South-Caucasus observer told me that what happened in July was the emergence of a new and radical form of anti-government protest, likely to be repeated in other post-Soviet oligarchies.

There was no single reason for the gunmen’s actions, instead they were driven by an aggregate of problems facing Armenian society.

Poverty, corruption, inequality, and the authorities’ inability to resolve the ongoing conflict in Nagorno-Karabakh Their actions prompted mixed feelings among Armenians. Some were outraged that the gunmen were using violence to achieve their goals. Others saw this aggressive action as necessary but poorly executed.

But many were inspired. Since their arrest, Daredevil supporters have been mythologising them, writing songs about their sacrifice for a noble cause – a more prosperous and free Armenia.

Since the siege and the protests, President Serzh Sargsyan has promised reforms, and a new PM and government has been ushered in. Few, though, believe deeply rooted social and economic problems can be solved so easily.

And the story of the Daredevils is not over. Once a trial date is set, their support base will become active again, demanding their release. That raises the prospect of another spell of street protests in Armenia.

By Rahyan Demytrie, a BBC correspondent in the South Caucasus

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(News report from Issue No. 302, published on Oct. 28 2016)

Kazakhstan seeks extradition of police officer

OCT. 24 2016 (The Conway Bulletin) — Kazakhstan is seeking the extradition of a former mid-ranking police officer based in Almaty who they say headed a crime ring that stole luxury cars from Moscow and resold them in Kazakh cities. The allegations show the extent of corruption within Kazakhstan’s police force. Prosecutors said that the corrupt police officer and his gang stole 500 cars over 10 years. Each car was worth between $50,000 and $120,000.

ENDS

(News report from Issue No. 302, published on Oct. 28 2016)