Tag Archives: corruption

Kazakhstan’s mobile operator posts Q2 revenues 15% down from 2015

ALMATY, JULY 20 2016 (The Conway Bulletin) — Kcell, Kazakhstan’s largest mobile operator, said Q2 revenues were 15.3% lower than last year because of weak economic conditions and aggressive competition which have driven down prices.

Kcell’s Q2 revenues of 36.4b tenge ($107.7m) represented a slight improvement over the previous quarter, when it posted 35.6b tenge ($107), its worst quarter since an IPO in 2012. Importantly, however, Kcell said that its subscriber base is holding up through an economic downturn.

“In the second quarter we started to see some stabilisation in market prices and subscriber numbers,” the company’s CEO Arti Ots said in a statement.

Increased competition and the depreciation of the tenge currency against the US dollar over the past year have knocked revenues for mobile operators in Kazakhstan.

In April 2016, revenues for all mobile companies in Kazakhstan were down by 21% to 68b tenge ($204m) compared to the same period last year, according to government data.

Sweden’s Telia Company owns a 62% stake in Kcell. It has said that it wants to sell this stake because of reputational damage caused by a corruption probe into bribes it paid to enter the Uzbek market.

ENDS

(News report from Issue No. 290, published on July 22 2016)

Kazakh officials arrest head of construction department

JULY 18 2016 (The Conway Bulletin) — The Kazakh anti-corruption agency ordered the arrest of Yerkin Bukharbayev, head of the construction department in the city of Shymkent, southern Kazakhstan. Mr Bukharbayev is accused of having embezzled public funds during a tender in 2013 to improve the flow of the Badam river which runs through the city. Bukharbayev and his associates allegedly stole 170m tenge ($1.1m at the time).

ENDS

(News report from Issue No. 290, published on July 22 2016)

Uzbek President’s daughter loses $300m

JULY 6 2016 (The Conway Bulletin) — Dutch prosecutors asked a court in Amsterdam to confiscate €300m ($333m) from Gibraltar-registered Takilant, a company linked to Gulnara Karimova, the eldest daughter of Uzbekistan’s president. Takilant allegedly received bribes in 2007/8 from Sweden’s Telia Company (then called TeliaSonera) and Russia’s VimpelCom to award mobile licenses in Uzbekistan. Dutch prosecutors asked the court to impose a €5m ($5.5) fine on Takilant and seize its 6% stake in Ucell, an Uzbek subsidiary of Telia Company. VimpelCom is registered in the Netherlands.

ENDS

(News report from Issue No. 288, published on July 8 2016)

SFO to look into Kazakh ENRC

JULY 3 2016 (The Conway Bulletin) — The British government gave the Serious Frauds Office extra funding to complete its ongoing corruption investigation into ENRC, a Kazakh miner that quit the London Stock Exchange in 2013. The company is accused of having paid bribes to win contracts in Kazakhstan and Africa. Three prominent Kazakhstan-based businessmen, Alexander Mashkevich, Alijan Ibragimov and Patokh Chodiev, founded ENRC, now called Eurasian Resources Group.

ENDS

(News report from Issue No. 288, published on July 8 2016)

Kazakh court jails doctors for selling babies

ALMATY, JULY 5 2016 (The Conway Bulletin) — An Almaty court sentenced a group of former doctors, nurses and mothers to prison for selling newborn children, exposing another case of corruption and human trafficking in Kazakhstan’s healthcare system.

Four mothers who had sold their children, 10 hospital workers and one other person linked to the trafficking of the babies will face between two and nine years in prison.

The sentence ended a trial that lasted for one year and targeted the illegal market of children.

For eight years, hospital workers, including several doctors, had organised the sale of at least 30 children at a price of between $500 and $6,000 each. One nurse sold as many as 10 babies.

The parents who bought the babies were pardoned by the judge, avoiding both a sentence and a criminal record, allowing them to become their children’s official guardians.

Under Kazakh law, people who have a criminal record cannot legally adopt children.

During the trial, parents who bought the babies said they had agreed to the trafficking ring because it was easier than facing the bureaucratic hurdles of adoption.

Aiman Umarova, a lawyer who defended a woman who bought a baby, told the Conway Bulletin’s Kazakhstan correspondent that this was not an isolated case in Kazakhstan.

“It is a problem across the country. In maternity houses you can easily sell children,” she said.

Last month, a court in Shymkent, south Kazakhstan, started a trial against workers in a maternity centre accused of selling as many as 21 newborn babies.

ENDS

(News report from Issue No. 288, published on July 8 2016)

Armenia’s finance minister refuses does not respond

JULY 6 2016 (The Conway Bulletin) — Armenia’s finance minister Gagik Khachatryan refused to respond to an investigative article that questioned his role in his sons’ real estate purchases in the US. His sons, Gurgen and Artyom, bought two houses in Los Angeles in 2010 for $11m and are now selling them for $35m. Transparency lobby groups have said there could be ties betweenMr Khachatryan’s ministerial position and his sons’ business deals.

ENDS

(News report from Issue No. 288, published on July 8 2016)

Kyrgyzstan jails official

JUNE 30 2016 (The Conway Bulletin) — Kylychbek Arpachiev, the former head of the investigations department at the Kyrgyz Prosecutor-General’s office, was jailed for 14 years for corruption and extortion. Arpachiev was arrested in 2015 for trying to extort $100,000. His imprisonment highlights the issue of corrupt officials in Kyrgyzstan.

ENDS

(News report from Issue No. 287, published on July 1 2016)

Italy accuses ex-MP taking $2.6m Azerbaijan bribe

JUNE 25 2016 (The Conway Bulletin) – The Italian authorities accused Luca Volontè, a former MP in Italy’s parliament and also in the Parliamentary Assembly of the Council of Europe (PACE), of taking a €2.3m ($2.6m) bribe in 2012-14 to vote down a resolution to condemn Azerbaijan for mistreating political prisoners.

This is an important case for Azerbaijan as, if proved, the allegations will once again highlight a culture of corruption in Azerbaijan.

Mr Volontè’s lawyers denied the allegations of bribery and money laundering.

The motion to condemn Azerbaijan’s treatment of 85 prisoners, described as political prisoners, was voted down in Jan. 2013 by PACE representatives 128 to 79.

Now Italian prosecutors said Mr Volontè, who organised the voting down of the motion, took €2.3m from Azerbaijani companies linked to the government. The prosecutors’ investigation said Baktelekom, a Baku-based telecoms company, made 18 payments between 2012 and 2014 to companies linked to Mr Volontè through a number of different banks.

ENDS

(News report from Issue No. 287, published on July 1 2016)

Georgia’s minister reiterates Saakashvili threat

JUNE 27 2016 (The Conway Bulletin) – Georgia’s justice minister, Tea Tsulukiani, reiterated that former president Mikheil Saakashvili would be arrested if he travelled to Georgia to campaign in a parliamentary election set for October. The Georgian government has put out arrest warrants for Mr Saakashvili connected to various financial crimes when he was in power between 2004 and 2013. Mr Saakashvili is currently governor of the Odessa region in Ukraine. He has said that he would like to return to Georgia ahead of the election.

ENDS

(News report from Issue No. 287, published on July 1 2016)

Azerbaijani woman has wrong leg amputated

JUNE 24 2016 (The Conway Bulletin) — An Azerbaijani woman who went into hospital to have a gangrenous leg amputated woke up after the operation to find that the surgeon had cut off the wrong one.

Tarlan Aliyeva, 82, discovered that instead of the inflamed left leg, the right one had been cut off. The surgeon who performed the operation couldn’t be found. He had fled the hospital.

“The doctors did this to me,” a tearful Ms Aliyeva, now a double amputee, was shown on a Youtube video as saying.

“The doctors did that to me because of money. See, they cut it from the root. They are not doctors. If they were, I wouldn’t be in this situation now.”

The case has gripped Azerbaijan with many people reacting with anger at the incompetence of, and corruption in the Azerbaijani medical profession.

“By law, most medical services are free of charge but in reality, you can never get a proper service without bribing,” Ilkin, a 38-year old IT specialist from Baku, told the Conway Bulletin

Reacting to the news, the health ministry has established a special commission to investigate the case jointly with law enforcement authorities.

ENDS

(News report from Issue No. 287, published on July 1 2016)