Kazak president accused of money laundering

A criminal investigation into alleged money-laundering by the son-in-law of Kazakhstan President Nursultan Nazarbaev has widened to include the president himself.

The Swiss federal prosecutor’s office launched an investigation into the suspected laundering of around SFr600 million ($655 million) through Swiss bank accounts by oil magnate Timur Kulibayeva in September 2010.

On Monday, Bruno de Preux, a Geneva-based lawyer acting for a group of Kazak citizens “opposed to state corruption”, told the Swiss news agency prosecutors were examining the suspected laundering of a further SFr400 million.

 

Nazarbaev is accused of being the beneficiary of some $100 million that was allegedly laundered via a third party and deposited into a Credit Suisse account in Zurich. The money relates to the 2006 takeover of satellite television group Khabar Agency.

 

The federal prosecutor’s office declined to either confirm or deny that Nazarbaev was one of the subjects of its investigation.

 

In April 2011, Nazarbaev, who has served as Kazakhstan’s president since the country declared its independence from the Soviet Union in 1991, was elected to another five-year term.

Source: Swissinfo

Joint Declaration of the Participants in the EU-Central Asia Forum on Security Issues in Paris

Driven by a shared commitment to developing and organising our long-term partnership on the basis of common objectives and undertakings to strengthen peace and stability in Central Asia, respect for human rights and the development of the rule of law and democracy, we met on the occasion of the First European Union - Central Asia Forum on Security Issues in Paris on 18 September 2008.

With the contribution of the international and regional organisations concerned, we have analysed security issues in Central Asia and defined concrete policy lines for our joint action in the following areas: combating illicit trafficking in arms, sensitive material, narcotics and human beings; combating terrorism and extremism; and cooperation in energy and the environment.

In line with the European Union’s Strategy for a New Partnership with Central Asia and on the basis of documents on the bilateral priorities of cooperation and of the regional initiatives, we agreed on the following points:

1. Strengthening political dialogue in all its forms

Convinced that socio-economic development, human rights, stability, peace and security are inseparable and mutually reinforcing, we intend to examine together the principal factors of tension and their consequences in the world today. It is our responsibility to create, through our exchanges and our joint initiatives, the conditions required to develop the potential of Central Asian countries. Political dialogue helps to lay the foundations for future action and shared work with a view to ensuring the political and socio-economic security and stability of the countries in the region.

We underline the importance of the EU Rule of Law Initiative in Central Asia. We will continue the dialogue on human rights with the EU, as well as in the framework of bilateral relations and multilateral organisations such as the UN and the OSCE, of which Kazakhstan will hold the chairmanship in 2010.

2. Strengthening regional stability

Broadening cooperation among the region’s countries, particularly on border security, is key to regional stability and security in Central Asia and to setting up cooperative management of regional risks and threats.

Our joint efforts will help to combat new risks and threats more effectively.

It is essential to reinforce regular exchanges of information and analyses to take into account possible risks of a political and military nature, especially through collaboration between analysis and research centres working on security, strategy and international relations issues in the Central Asian countries and in the EU.

The proliferation of weapons of mass destruction and their means of delivery represents a particular threat to peace and international stability. We reaffirm our support for the multilateral treaties and agreements as well as international initiatives on non-proliferation, and we agree to step up our efforts with a view to their full implementation. The commitment of the Central Asian countries to non-proliferation and disarmament was confirmed by the signing of the Treaty on a Nuclear-Weapon-Free Zone in Central Asia on 8 September 2006 in Semipalatinsk.

The creation of a nuclear weapon free zone will help to maintain and strengthen peace and stability internationally and regionally and promote non-proliferation in all its aspects.

We intend to pool our experience and cooperate in establishing effective export control systems, including conventional arms exports, strengthening border controls and securing sensitive facilities and sources of nuclear, radioactive, biological and chemical material, in order to prevent any risk of proliferation and procurement by terrorist groups.

We express our grave concern about growing nuclear proliferation crises and the risk of destabilisation to the non-proliferation regime, and we are in favour of compliance with international non-proliferation obligations, particularly the resolutions of the United Nations Security Council and those issued by IAEA Board of Governors.

We underline the importance of boosting the role of the IAEA in the peaceful uses of nuclear energy.

3. Stepping up the fight against terrorism

Combating terrorism in all its forms and expressions must be conducted within the framework of the international treaties and relevant United Nations Resolutions while respecting human rights, which guarantees its effectiveness.

We agree to continuously fight the financing of terrorism, in accordance with the recommendations of the Financial Action Task Force (FATF).

We consider that enhanced cooperation at all levels among the countries concerned, in both Central Asia and Europe, is a condition necessary to the successful achievement of our objective.

We believe it important to adopt measures to prevent the action of terrorist organisations that are engaged in illicit activities and that are banned by Central Asian and EU countries.

4. Developing cooperation between Central Asia and the European Union in rebuilding Afghanistan and stabilising its situation

We are mindful of the stabilisation and development of Afghanistan, factors which contribute to consolidating regional and global security. In referring to the conclusions of the International Conference in Support of Afghanistan held in Paris on 12 June, we reaffirm our determination to actively contributing to their implementation, particularly by reinforcing our political exchanges and economic cooperation with this country, as well as our cooperation with the relevant international organisations, especially the United Nations and the United Nations Assistance Mission in Afghanistan (UNAMA).

5. Joining forces to fight illicit trafficking in arms, sensitive materials, narcotics and human beings

The EU will increase cooperation with Central Asian countries to strengthen and implement legal measures to more effectively combat all forms of illicit trafficking: arms, sensitive materials, narcotics, psychotropic substances and their precursors, and human beings. The adoption of national strategies on integrated border management could be an effective means of ensuring internal stability in Central Asia. The Dushanbe Conference on 21 and 22 October 2008 will review the mechanisms for enhancing international coordination.

Concerned by persistently high drug production levels in Afghanistan and by the development of opium-to-heroin conversion activities, we welcome the adoption of United Nations Security Council Resolution 1817 on the fight against the trade in precursors. We are committed to implementing its provisions, particularly those aimed at increasing international control of precursors. We undertake to enhance cooperation within the framework of the 1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and the Paris Pact Initiative. A meeting of experts based on an enlarged troika format is planned on 1 October 2008 in Brussels and will help to strengthen the control of these products at a regional level. On this occasion, discussion focusing on updating the drug action plan will begin.

We believe that it is essential to develop and implement projects/programmes to improve, in their fight against narcotics trafficking, the law enforcement capacities of the countries bordering Afghanistan which are most at risk from the trafficking in narcotics originating from Afghanistan.

We are thoroughly convinced that the development of cooperation among Central Asian countries, with the participation of international organisations and donor countries, will ensure the adoption of effective measures to fight this common scourge. In this connection, we welcome the creation of the Central Asia Regional Information and Coordination Centre (CARICC) for the fight against narcotics trafficking.

6. Strengthening cooperation in energy, the use of natural resources and the environment

We will reinforce our cooperation in energy without prejudice to current cooperation.

We consider that the harmonisation of the interests of energy consumers and suppliers, transit states and transnational companies is a guarantee of international energy stability. Energy security in Central Asia and the EU presupposes common rules and a reasoned choice of new transport options involving all the countries concerned. We reaffirm the importance of active cooperation in the development of different hydrocarbon transport corridors that aim to ensure a guaranteed and reliable supply for European markets and other international markets.

In light of the conclusions of the energy ministers’ conference in Baku in November 2004, our cooperation will focus on the development of regional energy markets and strengthening the financing capacities for new infrastructure; implementation of open, forward-looking and proactive energy policies; setting up an investor-friendly environment by according an appropriate role to market mechanisms; and lastly improving energy efficiency in the various uses of primary energy to reduce greenhouse gas emissions, lessen the cost to economic growth and free up additional capacity.

We also note the necessity of enhancing our cooperation in renewable and alternative energies as well as in reliable, sustainable, low-carbon technologies. We will achieve this by comparing energy scenarios and ensuring cooperation among energy industries, particularly upstream and downstream of the hydrocarbons industry.

We are in favour of developing cooperation to jointly exploit hydro-energy resources, taking the interests of all the region’s countries into consideration.

The European Union will provide support to the development of hydraulic energy in Central Asia that will also help to reduce greenhouse gas emissions without prejudice to the region’s environmental security.

Conscious of the security implications of climate change, we are in favour of adopting long-term strategies to prevent the climate effects of human activities and in favour of the accession to multilateral instruments related thereto. We suggest that a dialogue be launched on how to address the threats posed by climate change in Central Asia in order to strengthen EU and Central Asian cooperation on this issue.

The European Union will pay particular attention to regional cooperation in Central Asia on the rational, efficient and sustainable use of hydraulic, hydro-energy and fuel resources and the environment.

The EU is ready to use its study and cooperation capabilities to facilitate the implementation of best practices, availability of drinking water and sanitation, as well as fighting climate change, inter alia, by increasing energy and hydraulic efficiency while safeguarding the ecological balance in the region.

We support the European Union’s Water Initiative (EUWI).

7. Helping to prepare a comprehensive approach to security in Central Asia

In a world marked by recurrent instability, we will strengthen our partnership and encourage the efforts of countries and regional organisations that can help to create a genuine area of cooperative security in Central Asia.

In this respect, we welcome the creation of the United Nations Regional Centre for Preventive Diplomacy for Central Asia

Source: France Diplomatie

Kazakhstan: Imitation of struggle against corruption

Imitation of struggle against corruption – “know-how” of the Kazakh authorities in power-struggle and stealing of what left from huge resources of Kazakhstan

Since the first months of the New Year 2008, authorities of our country have developed the stormy activities, aimed to hide big scale crisis in political, economic and public live of Kazakhstan. With this purpose president Noursultan Nazarbaev's report «Growth of well-being of citizens of Kazakhstan - an overall objective of a state policy» has been formulated. As a matter of fact, it became a smoke screen for covering large failures of the Kazakh authorities, with far going purpose to conceal decrease of living standards of people and to bleach the failed policies of the last years. For these purposes traditional methods of brain washing and the fooling by fine words were used by official propaganda. Without any excuse, president Nazarbaev has again told to present party-members of “Nur-Otan” and to its own government staff “how to adhere to the Kazakhstan national strategy of occurrence into the 50 most competitive states of the world”. As usual, he routinely lectured about “modernizations of a society”, and "innovative development of a national economy” within the so much advertised program "30 corporate leaders”.

Innovative aspect of the last years policies is so called program called “Ten strikes on corruption”. The idea more populist, than sincere. It is aimed to create the impression that the government is fighting with universal phenomena of the nowadays Kazakh life - corruption. But how about the president and his cronies, who have unlawfully “privatized” huge land plots and natural resources of the country? The unwritten “stories” of dirty deals could complete more then dozen of criminal reports in case they will be re-visited in the courts and will undergo criminal investigations. Under pretext of the above-mentioned campaign very recently minister of Kazakh railways was purged, number of governors (akims) was misplaced, etc.

But let's give the authorities a chance and try to believe in sincerity of their intentions – give them a helpful hand and provide all necessary assistance to realize its plan on struggle against corruption. As has offered one of oppositional politicians, actually this plan is realizable, if its each point is enriched by at least one additional measure. And only then these measures could become a real strikes against, instead of being painless stings of toothless Authority.

In that case the program should include following actions:

Firstly, it is necessary to clarify real volume and the size of the budget of the Presidential Administration. Then ordinary Kazakhs can really estimate "cost" of a life of the president. When the cost of life of the president and its administration became transparent, we at once shall find out that only on this it is possible to save tens of millions dollars per year.

Secondly, it is time bring accountability to the budget of “Nur-Otan” party. The world experience demonstrates that activity of any party, public organization and the nongovernmental organizations should be transparent, and sources of its financial receipts legal. As is known in the modern world a number of statutory acts and the regulations directed against financing of terrorism, bleaching of criminally acquired means and criminal incomes introduced. And from this elementary point of view of the public it is absolutely necessary to know, who finances party in power, to which extends sources of its financing are legal? Moreover, having understood the mechanism of financing of our party in power, we could immediately end such practice, as multi-million kick-backs (obviously undeclared and “tax-free”), which large businessmen are compelled to pay for the “protection” to “Ak-Orda”/

Thirdly, the Government should answer who is the owner and should be hold responsible for safety environment, observation of labor legislation and social protection of the workers on the number of national corporations, like “Kazakhmys”. It is necessary to define how and due to what “financial cuts” and “savings” airplanes purchases are funded, how the salary and pay-outs disbursed, and from where the extra profit is appropriated. Any self-respecting state should know the faces of true owners of national enterprises, in-first turn original owners of the largest infrastructural assets. Such an approach allows the concerned government to collect taxes in full, not allowing shadow shareholders to withdraw profits on offshore accounts. When we will learn, who in a reality owns the corporation, it becomes clear, and why it is easily buys the largest in the world airplanes, without investing any penny into the safety measures at workplace and retaining in extreme poverty thousand of workers, citizens of our country.

Fourthly, it is necessary urgently find out who is mysterious business partner of Lakshmi Mittal. The public should know, who is true "protector" of this businessman? Having clarified who is the receiver half of “Indian-billionaire’s-leaving-in-Kazakhstan” income, we will understand, why nobody (except of bunch of appointed scapegoats) was hold responsible for death of 191 miners at Mittal’s enterprises in Karaganda.

Fifthly, it is time to investigate who receives 60 cents from each barrel of the Kazakh oil extracted by “Shevron”, and clarify other episodes of “Kazkhgate”. The world knows no other precedents when the "owner" of oil deposits - the state would receive 16 % of profit. Normal figures in such cases are 60 %. Our so called business "partners" take away all, but 84 %. Even if their profit makes 20 %, where you did you saw the extraction cost of 64 %? In the case, what for such oil is necessary? Nobody and nowhere produce oil on such conditions. Hence the real profit rate far exceeds 20 %, and should be at level three-four times higher.

Sixthly, it is time to transfer the shares in “Rixos” hotel-ring in Astana, turkish Antalya and the Croatian Dubrovnik to the Government. As is known, the government official, without paying any dollar, has somehow appeared to become co-owner of the international five-star hotels network. Corruption? Certainly! Having transferred to the state his potion of shares, the official could redeem his fault before deceived people.

Seventhly, it is necessary to return to the state coffers all movable property and the real estate illegally privatized by an Economic Department (HOZU) of the Presidential Administration and the Government. As it is known, the group of officials, using their functional positions and posts, has appropriated sanatoriums, rest houses, hunting fields, farms, part-time farms, housing estates and the vast volume of land-plots earlier was in charge of Economic Department (HOZU). The total cost of alienated and falsely privatized assets far exceeds billions dollars.

In-eighth it is necessary to investigate circumstances of capitalization of large domestic banks and it will be right to start up with re-privatization ATF-BANK. The authorized capital of the given bank has been paid-up from the proceeds of raw materials export-sales by the state-owned foreign trade enterprises, when the money were not returned to the country from abroad. As is known, the majority of existing today kazakhstani banks used this scheme for the long time.

In-ninth it is necessary to clear-up a situation around “Mangistaumunaygas” - who to whom and how much is selling? The one well-known politician has ordered the Government to redeem its own lot of shares in this Kazakhstan’s largest oil company. It is time at last to understand who is the true “boss” in the country owner and whose interests protects the Kazakh government. In particular, to define on what offshore accounts budgetary money leaves.

Tenthly, it is time to put things in order in financial sphere and to return to people the money from secret accounts in the South-Asian banks. At secret accounts in banks of Indonesia, Singapore and Hong Kong the financial resources having a corrupt origin are concentrated. Return of this money to the country will allow to soften consequences of financial crisis for ordinary citizens of Kazakhstan.

It is clear, that, having made even these steps, we will not push far ahead in our fight against corruption, since it’s already late. To complete proposed actions it is absolutely compulsory that Mr. N.Nazarbaev has stepped down and gave the opportunity to fill the highest public office in the country to the normal, fair, competent and uncorrupted. Only then the country would be able to fully restore itself in 15 or 20 years. Still, the proposed scenario is impossible and Mr. N.Nazarbaev will press-down Kazakhstan for another 5 years. And that is not matter of fact, that after all the normal and fair president will come to power. So, dears, Kazakhstan will not become the normal country on our memory.

Musa Feliksov

Source: HULIQ