Probe uncovers massive $3 billion secret bribe fund in Azerbaijan

Ilham AliyevAn investigation by a consortium of European newspapers has uncovered details of a massive slush fund worth nearly $3 billion, which was allegedly used by Azerbaijan’s governing elite to bribe officials, business leaders and journalists at home and abroad. The fund was operated out of Baku, the capital of the former Soviet state, which is routinely accused of human-rights abuses. Western countries, including the United States, censure the government of the oil-rich state for its role in systematic abuses. These involve high levels of public- and private-sector corruption, vote-rigging, politically motivated disappearances, and wide curtailment of basic civil liberties. This new information is bound to add to Azerbaijan’s image as a secretive oil-rich state ruled by corrupt elite connected to the country’s President, Ilham Aliyev, and his family.

The existence of the slush fund was revealed by the Organized Crime and Corruption Reporting Project (OCCRP), an international investigative consortium. The OCCRP’s report was published in Tuesday, following a lengthy investigation by members of 17 European news media, including publications in the United States, Britain, Germany, France, Denmark and Belgium. The report states that the fund, which it nicknames “the Azerbaijani Laundromat”, was operational for over two years, from 2012 to 2014. During that time, it participated in “over 13,000 transactions”, many of which were carried out through companies based in the United Kingdom but registered in the British Virgin Islands, Belize and the Seychelles. Payments were processed by the Estonian branch of Danske Bank, a major European banking institution.

According to the OCCRP report, most of the fund’s recipients were politicians, business executives, reporters and other influential people in Western Europe, as well as Turkey and Central Asia. Other recipients included wealthy families in Azerbaijan, who used the funds to finance a luxurious lifestyle, according to the report. Some foreign recipients of the funds were politicians, journalists or lobbyists who have been vocal in supporting Azerbaijan’s government and its policies. Most of the funds are believed to have originated from Azerbaijani-based companies, primarily Baktelecom MMC. But Russian-based companies, including Rosoboronexport, Russia’s state-operated exporter and importer of defense-related technologies, also contributed over $30 million to the slush fund.

Perhaps most controversially, the OCCRP report alleges that some of the secret slash funds originated from senior cabinet members in Azerbaijan, as well as some intelligence officials. It also states that investigators uncovered “ample evidence of [the fund’s] connection to the family of [Azerbaijan’s longtime] President Ilham Aliyev”. Late on Tuesday, a statement issued by President Aliyev’s office rejected the report as “baseless, malicious and […] provocative in nature”. More reactions to the OCCRP report are expected in the coming days.

Author: Joseph Fitsanakis | Date: 06 September 2017 | Permalink

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