Tag Archives: corruption

Gulnara was imprisoned in 2015 says Uzbek prosecutor

TASHKENT, JULY 28 2017 (The Bulletin) — In a rare public statement, Uzbekistan’s Prosecutor-General said that Gulnara Karimova, once considered a potential successor to her father President Islam Karimov, had been tried and found guilty of various financial crimes in August 2015.

Karimova has not been seen or heard of since being placed under house arrest in Tashkent in March 2014. Rumours had even circulated around Tashkent in the months after her father’s death from a heart attack in September last year that she had been poisoned.

The Prosecutor-General’s statement said that the globe-trotting self-styled diva had been the head of a crime gang. “Under the control and assistance of Karimova G. members of an organised crime group committed a number of crimes between 2001 and 2013,” it said.

At one time, during the height of her powers, Karimova had acted as the unofficial gatekeeper to Uzbekistan, demanding bribes of hundreds of millions of dollars for market access. Swedish-Finnish mobile operator Telia is selling out of its FSU subsidiaries because of the reputational damage caused by a series of investigations showed that it had paid Karimova $300m to set up a company in Uzbekistan in 2007/8.

Always despised by ordinary Uzbeks who hated her opulence while they struggled, the latest revelations about her wealth have further dented her reputation.

In Tashkent, a Bulletin correspondent said that people reacted with disgust and fury about the news the Karimova had headed a gang that had stolen and extorted hundreds of millions of dollars.

“I am outraged reading today’s news,” said a 31-year-old teacher.

“My neighbour was sentenced to seven years for eluding taxes worth just 10m soum ($2,500). Imagine seven years for just 10m soum and five years for a nationwide raid. What justice?”

ENDS

(News report from Issue No. 336, published on Aug. 5 2017)

Kyrgyzstan sentences Akaev’s son-in-law

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JULY 18 2017 (The Bulletin) — A court in Bishkek sentenced Adil Toishanbayev, son-in-law of Askar Akayev — Kyrgyzstan’s first post- Soviet president, to 20 years in prison in absentia for various financial crimes including tax evasion. Mr Akayev was overthrown in a revolution in 2005. He now lives in Moscow. Mr Toishanbayev has been detained in Kazakhstan, Moscow and Dubai but never deported.

ENDS

(News report from Issue No. 337, published on July 27 2017)

Uzbekistan to reform tax collection system

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JULY 19 2017 (The Bulletin) — The authorities in Uzbekistan have said that they intend to reform the country’s tax system in line with a swathe of liberalisations across the country. It is unclear what officials meant by this but media reported that the government wanted to increase the amount of tax collected and cut down on corruption.

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(News report from Issue No. 337, published on July 27 2017)

Kazakh police arrests four officials

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JULY 10 2017 (The Bulletin) — Police in Kazakhstan arrested four members of the pharmacy committee within the health ministry for corruption, Kazakh media reported. Reports said that the four officials were suspected of taking bribes to give distribution certificates for drugs and of embezzling state funds by overstating the cost of medicines they were buying. Kazakhstan is trying to improve its reputation for corruption and this year has arrested several senior officials, including a former economy minister.

ENDS

(News report from Issue No. 336, published on July 16 2017)

Kazakh authorities slap $27.4m tax fine against Kcell

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ALMATY, JULY 5 2017 (The Bulletin) — Kcell, the biggest Kazakh mobile operator, said that Kazakhstan’s tax authorities have handed it a 9b tenge fine ($27.4m) for unpaid taxes.

In response Kcell, majority owned by Swedish -Finnish operator Telia, said it would dispute the fine, setting up a potentially explosive court fight between a Western corporate and the Kazakh government.

“Following the audit (of our accounts for 2012-15), the tax authority has made a total claim of 9b tenge, of which 5.8b tenge is for unpaid taxes and 3.2b tenge represents fines and penalties for late payment. Kcell intends to dispute this claim through the available mechanisms, which includes court litigation,” Kcell said in a statement.

For both parties a lengthy court battle is poor timing. After a corruption scandal in Uzbekistan centred on paying the daughter of former Uzbek leader Islam Karimov for market access, Telia said it wants to exit the former Soviet Union. As well as its stake in Kcell, it plans to sell out of Uzbekistan Ucell, Azerbaijan’s Azercell, Moldova’s Moldcell and Georgia’s Geocell.

Kazakhstan wants to woo finance companies into setting up in Astana, where it is building an investment centre. Headlines highlighting rows will damage this drive.

ENDS

(News report from Issue No. 336, published on July 16 2017)

Kazakh court jails Ablyazov

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JUNE 7 2017 (The Bulletin) — A court in Kazakhstan sentenced fugitive former banker-turned- opposition-leader Mukhtar Ablyazov to 20 years in prison for various financial crimes. Ablyazov is currently living in France where a judge ruled that he couldn’t be extradited to Russia or Ukraine because there was a risk that he would then be sent to Kazakhstan and tortured. Kazakhstan has said that Ablyazov plotted to overthrow Kazakh President Nursultan Nazarbayev after he fled the country with billions of dollars he stole from BTA Bank, where he had been chairman.

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(News report from Issue No. 332, published on June 12 2017)

Kyrgyz Prosecutor investigates ex-ministers

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MAY 31 2017 (The Bulletin) — Former Kyrgyz PM Igor Chudinov and former economy minister Akylbek Japarov are being investigated for corruption, media reported quoting officials. Both men are currently MPs for the Bir Bol party which is part of the ruling coalition. The Kyrgyz Prosecutor and the National Security Committee said that Mr Chudinov, PM in 2007-9, and Mr Japarov were under investigation for corruption linked to a $2.9m fund for agricultural development in 2009.

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(News report from Issue No. 331, published on June 5 2017)

CoE investigates Azerbaijan bribe incident

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MAY 31 2017 (The Bulletin) — The Council of Europe launched an investigation into allegations that Azerbaijan bribed some members of the Parliamentary Assembly (PACE) into rejecting a report that was critical of it. Pressure has been building on the Council of Europe to launch an investigation after allegations surfaced that Italian Luca Volonte had taken a 2.5m euro bribe. Mr Volonta has denied the allegations.

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(News report from Issue No. 331, published on June 5 2017)

Armenia sets up anti-corruption unit

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MAY 25 2017 (The Conway Bulletin) — Armenia’s government has set up a new anti-corruption unit, media reported, designed to screen high- ranking officials taking jobs that might present a conflict of interest. Anti-corruption measures have been increased across the globe after a string of highly public leaks showed just how strong the links were between corruption and various officials in governments worldwide.

ENDS

(News report from Issue No. 330, published on May 28 2017)

Three former executives at Georgia’s Poti Port given prison sentences for corruption

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TBILISI, MAY 23 2017 (The Conway Bulletin) — Three former executives of the Ras Al Khaimah Investment Authority (RAKIA), which used to own Poti Port in Georgia, were given prison sentences in Ras Al Khaimah, part of the UAE, for corruption.

Former RAKIA CEO Khater Massaad and Gela Mikadze and George Janashia, who also used to work for RAKIA in Georgia, were found guilty in absentia of fraud by a judge over a scam they concocted in 2010/11. They persuaded Poti Port, then 100% owned by RAKIA, to enter a joint-venture with the previously unknown Raystar Trade LLP.

The judge said that Mikadze and Janashia were the owners of Raystar and that as soon as a payment was made to it by Poti Port the company was closed down, effectively allowing the three men to steal $17.2m.

Media said that Massaad is currently in Jeddah, where he has been arrested, and is waiting extradition. Mikadze is reportedly in Switzerland and Janashia is allegedly in Georgia. It is not clear if they have also been arrested.

In 2011, RAKIA sold its stake in Poti Port. Poti Port, on the Black Sea, is considered an important strategic site by the government.

ENDS

(News report from Issue No. 330, published on May 28 2017)