Azerbaijan’s ruling families linked to secret investments via Maltese bank – The Guardian

April 24, 2018 By administrator

Azerbaijan’s ruling families linked

^{By Juliette Garside and Stephanie Kirchgaessner}

Azerbaijan’s ruling families are the alleged beneficiaries of dozens of anonymously owned companies that have been used to invest in property, hotels and businesses in Europe, according to an investigation by the Daphne Project.Over the past three years, several networks of companies appear to have used a private bank in Malta for secret investments in the UK, Spain, France, Georgia and Montenegro, research by the project found. Many of the companies were allegedly operated for the benefit of the children of Ilham Aliyev, Azerbaijan’s president, and the sons of his minister for emergency situations, Kamaladdin Heydarov, according to three sources with knowledge of the transactions.

Their claims are supported by information in the public domain, and a leak from Dubai residency records

Aliyev’s daughters, Leyla and Arzu Aliyeva, did not respond to a request for comment.

Lawyers for Heydarov’s sons, Nijat and Tale, said: “Our clients are the beneficial owners of companies … which have entirely legitimate and lawful business.”

Although there is no suggestion of wrongdoing, the disclosures are likely to raise new questions for Azerbaijan’s ruling elites, who have been widely criticised for a lack of transparency since Aliyev took power in 2003.

He has been accused of presiding over a regime that has imprisoned journalists, committed human rights abuses and allowed looting of state assets by public officials. The Organisation for Economic Co-operation and Development has repeatedly called for the country to be more open and provide greater transparency as part of necessary anti-corruption measures.

The president has denounced any criticism of his government as a “smear” and accused western media of waging a “biased, groundless and provocative” campaign against Azerbaijan’s leaders.

The investigation shows the breadth of previously unreported investments owned by some of the elite, and how Malta has been used as a gateway for them to buy and manage assets across Europe and the rest of the world.

At the heart of the network are companies that were clients of Pilatus bank, whose headquarters are in Malta and assets are frozen pending the outcome of an investigation initiated by the country’s banking regulator last month.

The information appears to show for the first time that the president’s daughters own a half share in Gilan Holding, one of Azerbaijan’s largest businesses, with interests in banking, construction, tourism, agriculture and Gabala football club.Gilan Holding was founded by Heydarov in the 1980s and became one of Azerbaijan’s most successful companies before being handed to his sons, before Heydarov entered government.

Assets allegedly held by the families through companies that were customers of Pilatus bank include:

– An investment in the five-star Sofitel hotel and spa on Dubai’s Palm island, which is operated by the French multinational AccorHotels Group.

– Azerbaijan’s Gilan Holding conglomerate.

– Three French manufacturers of porcelain, bed linen and Smurf figurines.

– A $40m (£29m), five-star hotel redevelopment in Georgia.

The Maltese regulator has declined to comment on the focus of its inquiry at Pilatus, and there is no suggestion those named in this article acted illegally.

A collaboration of 18 news organisations, including the Guardian, Reuters and the New York Times, has been researching Pilatus. Led by France’s Forbidden Stories, the Daphne Project was created to continue the investigations of Daphne Caruana Galizia, who was killed by a car bomb in October.

Azerbaijan’s membership in EEU impossible without Armenia’s consent – Russian analyst

November 21, 2017 By administrator

Azerbaijan’s membership in the Eurasian Economic Union is practically ruled out without any consent by the Armenian authorities and the Armenian people, says a Moscow-based political analyst.

In an interview with Tert.am, Alexander Sobyanin, the director of the Association for Cross-Border Cooperation, highlighted the need of serious collaborative work before any decision-making “to understand that uniting economies under a common umbrella is a reality dictated by international developments”. In his words, such an approach would facilitate future peace efforts over Nagorno-Karabakh (Artsakh).

The Russian Foreign Minister recently said in Baku that they would hail Azerbaijan’s presence in the Eurasian Economic Union. Do you think it is a possible scenario? Azerbaijan has not kind of made any public statement in that connection.

Sergey Lavrov spoke not only of Azerbaijan but also Uzbekistan. I think those countries’ membership in the Eurasian Economic Union is really becoming inevitable, yet we shouldn’t make haste under any circumstances, as this kind of decisions have to consider also the member-states’ societies (not just the governments). It has to do particularly with Armenia. Those states’ membership efforts should contribute to the Eurasian Union’s development in general. In the case of Azerbaijan, a lot depends certainly on Armenia. It is a complicated issue as it is, so [the sides] need to carry out considerable work before any decision-making to reach agreements wieghing all the pros and cons.

You are aware that Armenia and Azerbaijan are in a de-facto war situation. So what is the expected outcome? What would be the motivating factor for Armenia to agree to Azerbaijan’s membership?

If there is a [mutual] desire, the sides will be able to reach an accord. Azerbaijan’s membership may facilitate the Nagorno-Karabakh conflict settlement efforts. At the same time, it is important to also maintain security and sovereignty in the two states not to allow any lowering of those criteria, and to avoid any loss of balance. The international community does not have common approaches with respect to the Karabakh conflict; there isn’t any single and universally acceptable position. So Russia’s presence in the conflict settlement process is really necessary in order to make the sides demonstrate enough willingness and desire to discuss the issue. This kind of problem requires a great responsibility as it is really very complicated. It is the international situation that practically makes our economies help one another.

So do you really think the Nagorno-Karabakh issue will be resolved after Azerbaijan and Armenia become members of a single union? For over 25 years, the sides haven’t been able to reach any accord, with each pursuing its own gains and interests. How are they expected to forget all this for the sake of Azerbaijan’s membership?

That doesn’t absolutely imply that Azerbaijan’s entry into the EEU would pave way to conflict settlement just within a fraction of the second. It is possible, of course, to establish historic sovereignty. We have seen Germany’s and France’s example, which is quite successful. Of pivotal importance is not only the consent by the political elite but also the civil society of Armenia. We need also consent by the [political] factions represented in the National Assembly, as this is really a complicated issue. I do not simply imagine that at least a small segment [of the Armenian society] would back Azerbaijan’s membership in the EEU. We probably need a referendum to identify the public sentiments. I don’t know whether Armenia’s Constitution allows for that, but public opinion surveys alone will not be enough to identify what the societies want and whether or not they agree [to such a plan]. The Armenian society’s position must be clearly expressed before such a decision-making. But that’s a time-consuming issue, not something to be settled in just a couple of days.

And what about situation with Nagorno-Karabakh (Artsakh) in that case? Will Karabakh also become an EEU member and if so, what will be its status?

Considering the developments over the past 10 years, this issue needs to be considered from the angle of the theory of relativity. I think that Karabakh will in most likelihood have its status approved, overcoming economic barriers. And the economy of Karabakh will reach a considerably advanced level to have its contribution to the Eurasian market’s development. That’s one option. And perhaps Karabakh will be granted a separate status, as they may decide that it should not be a Union member. I think the issue can be resolved through discussions.

Lalibre: Belgian judge lobbies for Azerbaijan’s authoritarian regime

September 17, 2017 By administrator

One of the 12 Belgian Constitutional court judges, Jean-Paul Moerman, has also been linked to the controversial Belgian association lobbying for the Azerbaijan government, Lalibre reported.

Moerman was invited to Azerbaijan several times, where he positioned himself in favour of the Azerbaijan’s authoritarian regime while working as Belgian high magistrate. His flights and the cost of his stays there were covered by a Brussels association called the Communication Office of Azerbaijan (OCAZ). It was founded by liberals Stef Goris and Alain Destexhe, who lobby in favour of the Baku government.

Moerman also acted as consultant on a book written by an Azeri MP, who turned out to be the central figure in a money laundering scandal involving European politicians.

World media against granting credits from Western taxpayers’ pockets to Azerbaijan’s corrupt authorities

February 2, 2016 By administrator

bnbn.thumb An International Monetary Fund team is currently on a “fact-finding” mission at the Azerbaijan government’s request, The Financial Times reports.

According to the report, investigative journalists from the Organised Crime and Corruption Reporting Project (OCCRP) and elsewhere have for years observed the ruling clan and its acolytes dominate through opaque business practices and autocratic abuses.

Reportedly, a WikiLeaks cable sent from global intelligence company Stratfor via SIPRNet, the classified US Department of Defence computer network, commented that Azerbaijan is run like a medieval feudal system shared by several clans.

According to the article, a low oil price threatens this cosy arrangement and has sparked popular protests. This is no small development given the government’s own hostility towards an oppressed society. OCCRP journalist Khadija Ismayilova has just begun a seven-year jail sentence after regularly exposing the corruption at the heart of the Aliyev regime — joining nearly 100 other journalists and activists behind bars.

“Western taxpayers should be appalled that they are being asked to fix the problems of the feudal elite. OCCRP has revealed the regime’s corruption in exhaustive detail,” the authors of the article point out.

Meanwhile, according to the article, corporate ownership information has been confidential in Azerbaijan since 2012. This means there is no simple way to check who benefits from any transactions with the government. These moves are designed to prevent any public scrutiny or government accountability. A bailout without stringent reform will be caught in the same web of systematic corruption. IMF and the World Bank must avoid siphoning yet more money, this time from western taxpayers, into the coffers of a wealthy autocracy.

The website of the American TV channel CNBC writes that more countries are expected to join oil-rich but cash-poor Azerbaijan and Nigeria in asking for international financial help if the price per barrel continues to show no sign of recovering. “After Azerbaijan and Nigeria requested international financial aid in January as oil prices wallowed around, and even dipped below, the $30 a barrel mark, all eyes are on other struggling oil-producing nations to see who might be next to go cap in hand to such organisations as The World Bank or International Monetary Fund,” CNBC reports.

According to the Economy Watch , Azerbaijan faces greater hardship than other commodity-driven nations because of the social and political unrest unravelling as the economy falters. Police throughout the Caspian country have been dispersing unruly protesters who are angry over skyrocketing unemployment and price hikes.

S&P expects inflation to rise to 15% in 2016, which is well above the traditional two percent seen in previous years. Officials first responded to the crisis by announcing an austerity program that would last for three years, but only time will tell if such policies will work. President Ilham Aliyev announced a 30% increase in public salaries and pensions, a dangerous promise to make at a time of low funds and public outrage. Policymakers risk stoking further unrest if they fail to deliver on their promises, which seem more likely given the current state of the economy, Economy Watch points out.

The website of The Jamestown Foundation, a US non-governmental think tank, writes that the Azerbaijani public felt the negative impact of the devaluation of the country’ national currency. Panic and frustration led to protests by local populations across several regions countrywide against the increase of prices of essential goods and unemployment. Although the protests are not politically motivated in the narrower sense, and they developed sporadically, the Azerbaijani Prosecutor General’s Office and as well as the Ministry of Interior issued a joint statement accusing the opposition parties and radical and religious extremist groups of organising the protests.

“The population’s concerns have only increased due to the multiple and often contradictory statements by government officials, as well as the obvious breaches of promises. Essentially, the absence of a clear anti-crisis plan and agenda for economic liberalisation has fuelled public concern that the government is not acknowledging the reality of the crisis,” the foundation writes.

Italian journalist: Getting into Azerbaijan’s “black list” honor for people refusing to “kiss tyrant Aliyev’s feet”

October 7, 2015 By administrator

One does not have to try hard to get into Azerbaijan’s “black list.” You just need to tell the truth. This is what Milena Gabanelli, an Italian journalist, did covering the Karabakh war at the early 90’s. A few years ago, another Italian journalist, Anna Mazzone, also wrote a story on Artsakh where the war is not a remote memory but a conflict that may burst out any moment, the journalist herself writes for Formiche.net, recounting how she got into the “black list” of the Foreign Ministry of Azerbaijan.

At the beginning of her article, Mazzone states that the government of Azerbaijan has increased repressions against oppositionists deteriorating its international image, which was negative to start with. Over the recent years, dozens of human rights defenders, political and civil figures, journalists and bloggers have been arrested or jailed on politically motivated reasons. Many others left the country. NGO and their leaders’ bank accounts have been frozen. In some cases, those organizations were closed down. New laws made it practically impossible for the independent groups to be financed from abroad. According to the journalist, the international community criticizes Azerbaijani government’s “iron fist” from the one hand, and fails to promote an improvement of the situation in the country, from the other.

“I have never been in Azerbaijan’s ‘black list,’ but never say never. It happened and it makes me happy – being a ‘persona non grata’ for a dictator is always worth praising. Really, I did not do much to be given the honor – I just did my work,” Mazzone writes.

For many years, the journalist told her readers about Armenia and Azerbaijan, parts of the world that seem to be so remote, yet they are closer that one could imagine. Asking the Melendugno (Italy) residents would be enough to be convinced in that. These are the people, who protested against the realization of the Trans Adriatic Pipeline (TAP), which is to supply Azerbaijani gas to the European countries.

Mazzone notes that there are also other Italians banned from entering Azerbaijan. She acknowledges being in a good company in the “black list.” The list starts with the name of Antonia Arslan, a well-known Italian writer of Armenian descent, who traveled the whole peninsula during the Centennial of the Armenian Genocide committed by the Young Turks to spread the word about what happened in Turkey between 1915 and 1918.

The names of other journalists and TV reporters, who “are probably guilty of not kissing the tyrant Ilham Aliyev’s feet” are also in the “black list.” Names of sculptors, architects, actors and actresses are in their company, as well.

Mazzone further reminds that French journalists for the TV channel France 2 recently called the president Ilham Aliyev a “dictator” and Azerbaijan one of the cruelest dictatorships in the world. A dictator president cannot use against the foreign journalists the same methods he uses against the local journalists. Mazzone, citizen of a free and democratic country, does not understand a ban on entry into another country. Nonetheless, she hopes that democracy will be established in Azerbaijan. “Do not worry Aliyev. This is what happens to the ‘best dictators’ sooner or later,” the journalist sums up.

Back in 2013, the Foreign Ministry of Azerbaijan published a list of people who had become persona non grata in Azerbaijan for visiting Nagorno Karabakh Republic, and thus are barred from entry to the country. According to media reports, the number of the names included in the list is above 300, which, however, does not stop the world celebrities.