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WIKILEAKS: AZERBAIJAN: THE MINISTER OF EVERYTHING SIGNIFICANT AND HIS SON
BY NANORE BARSOUMIAN
ASBAREZ
Tuesday, December 14th, 2010
A U.S. Embassy cable from Baku, leaked by WikiLeaks, gives a report on
Azerbaijan~Rs Heydarov family, ~Sthe second most powerful commercial
family in Azerbaijan,~T noting the lobby efforts of Tale Heydarov,
head of the European Azerbaijan Society (TEAS), especially in regards
to Nagorno-Karabakh.
According to the cable, the Heydarov family~Rs most powerful member
is Kamaladdin Heydarov, who has been the head of the Ministry of
Emergency Situations (MES)~Wotherwise known as ~SThe Ministry of
Everything Significant~T~Wsince 2006. ~SObservers have said he might
be even more powerful than the President himself.~T
~SThe Ministry now controls the fire departments and other emergency
services, fire code inspections, state grain reserves, and construction
licensing. This last area of responsibility (perhaps the most important
for foreign entities operating in Azerbaijan) also covers building
inspectors who can interfere with, delay, or stop any construction
project they declare to be ~Sunsafe.~T In fact, MES staff have
previously warned American and other foreign businessmen that their
purview covers anything that is associated with temperature, pressure,
or isotopes ~W categories broadly interpreted to include just about
everything under the sun.~T
Heydarov has two sons, Nijat and Tale. The cable states: ~SHeydarov~Rs
son Tale is the President of the European Azerbaijan Society (TEAS),
and has made rounds to U.S. embassies in European capitals from
his London base. The ~Ssociety~T purports to be an independent
advocacy group, but its talking points very much reflect the goals
and objectives of the GOAJ [government of Azerbaijan]. In recent
meetings, Tale and his cohorts have raised ~QArmenian aggression~R
in Nagorno-Karabakh and ~Qdouble standards~R of U.S. human rights
and democracy reporting in the region, and complained about efforts
of the U.S. Congress to provide humanitarian assistance within the
Nagorno-Karabakh enclave.~T
The cable was written in February 25, 2010, by Charge d~RAffaires
Don Lu, and was classified secret. It was released by WikiLeaks on
December 6.
The complete cable can be read here.
Viewing cable 10BAKU127, AZERBAIJAN: WHO OWNS WHAT VOL. 2 - THE
MINISTER OF If you are new to these pages, please read an introduction
on the structure of a cable as well as how to discuss them with
others. See also the FAQs
Understanding cables Every cable message consists of three parts:
The top box shows each cables unique reference number, when and by
whom it originally was sent, and what its initial classification was.
The middle box contains the header information that is associated with
the cable. It includes information about the receiver(s) as well as
a general subject.
The bottom box presents the body of the cable. The opening can contain
a more specific subject, references to other cables (browse by origin
to find them) or additional comment. This is followed by the main
contents of the cable: a summary, a collection of specific topics
and a comment section.
To understand the justification used for the classification of each
cable, please use this WikiSource article as reference.
Discussing cables If you find meaningful or important information in a
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#10BAKU127.
Reference ID Created Released Classification Origin 10BAKU127
2010-02-25 05:05 2010-12-12 21:09 SECRET Embassy Baku VZCZCXRO2618
PP RUEHDBU DE RUEHKB #0127/01 0560518 ZNY SSSSS ZZH P 250518Z FEB
10 FM AMEMBASSY BAKU TO RUEHC/SECSTATE WASHDC PRIORITY 2424 INFO
RUCNCIS/CIS COLLECTIVE PRIORITY RUEHAK/AMEMBASSY ANKARA PRIORITY
3798 RUEHLO/AMEMBASSY LONDON PRIORITY 0469 RUEHSI/AMEMBASSY TBILISI
PRIORITY 1926 RUEHIT/AMCONSUL ISTANBUL PRIORITY 0210 RUCPDOC/DEPT OF
COMMERCE WASHDC PRIORITY RUEKDIA/DIA WASHDC PRIORITY RHEHNSC/NSC WASHDC
PRIORITY RUEAIIA/CIA WASHINGTON DC PRIORITY RUEATRS/DEPT OF TREASURY
WASHDC PRIORITY RUEHVEN/USMISSION USOSCE PRIORITY 1563 RUEHBS/USEU
BRUSSELS PRIORITYS E C R E T SECTION 01 OF 04 BAKU 000127
SIPDIS
COMMERCE FOR D.STARKS EEB/CBA FOR T.GILMAN DEPT PLEASE PASS TO USTR
FOR C. MORROW AND P. BURKHEAD
EO 12958 DECL: 02/24/2020 TAGS ECON, EINV, EIND, ETRD, KCOR, PINR,
PGOV, RS, KS, IR, TU, AJ
SUBJECT: AZERBAIJAN: WHO OWNS WHAT VOL. 2 - THE MINISTER OF EMERGENCY
SITUATIONS, BELUGA CAVIAR, AND FRUIT JUICE (C-RE9-02494; C-RE9-02493;
C-RE9-02492) REF: BAKU 54
Classified By: XXXXXXXXXXXX a.i., for reasons 1.4(b) and ( d).
¶1. (S) SUMMARY: This cable is the second in a series that profiles
the most powerful families in Azerbaijan, both in terms of economic and
political power. This issue features Minister of Emergency Situations
Kamaladdin Heydarov and his family. Heydarov was previously Chairman of
the State Customs Committee, and his hand-picked successor now operates
that agency, one of the most corrupt operations in Azerbaijan. The
Heydarov family, which controls a business empire in Azerbaijan
ranging from fruit juice production to real estate development, is
the second most powerful commercial family in Azerbaijan, after the
Pashayev family (into which President Aliyev married). End Summary.
The Man Behind the Power ------------------------
¶2. (S) Kamaladdin Heydarov is the most powerful member of this
family, and some observers have said he might be even more powerful
than the President himself. (COMMENT: Post does not believe this
is true, although Heydarov controls more visible assets and wealth
within the country than the President. End Comment.) His father,
Fattah Heydarov, is a Member of Parliament from the mountainous Qabala
district, which serves as a home base for the family outside Baku.
Fattah was Secretary of the Ordubad (and later Julfa) District Party
Committee during Soviet times, and served as Minister of the Welfare
Service of Nakhchivan from 1976 to 1978 and later as Nakhchivanâ~@~Ys
Minister of Culture from 1983 to 1995.
¶3. (S) Kamaladdin Heydarov was Chairman of the State Customs
Committee for nine years, and since 2006 has been head of the
para-military Ministry of Emergency Situations (MES), which acts as
a super-Federal Emergency Management Agency, Fire Marshall, health
and safety inspector, and overall regulator of many aspects of the
economy. Born in 1961, he holds a degree in Geology and International
Law from the Azerbaijan State University. He held executive positions
in a number of private and public enterprises prior to his appointment
at the ripe old age of 35 as Chairman of the State Customs Committee
(SCC), an agency that is notoriously corrupt, even by Azerbaijani
standards. Heydarovâ~@~Ys rise to power was partly a result of the
strong relationship between his father Fattah and former President
Heydar Aliyev (also from Nakhchivan), but also partly a result of
Heydarovâ~@~Ys strong management skills. As he gained wealth for the
ruling party, Heydar Aliyevâ~@~Ys respect for him grew, until finally
he was entrusted with the valuable role of Chairman of the SCC.
¶4. (S) The State Customs position allowed him to gain his massive
wealth, as significant illicit payments were paid â~@~\up the food
chainâ~@~] in an elaborate and well-orchestrated system of payoff and
patronage. Heydarov likely still enjoys a sizeable income from the
SCC, as it is controlled by his loyal successor. When President Ilham
Aliyev appointed Heydarov as Minister of Emergency Situations in 2006,
he was replaced at the SCC by his Deputy Aydin Aliyev. Aydin Aliyev is
not related to President Aliyev, and Heydarov is Aydin Aliyevâ~@~Ys
sole benefactor, a symbiotic relationship in which Aliyev presumably
gives undying loyalty (and a hefty cut) to the powerful Heydarov in
order to retain his position. When Charge first met Heydarov in 2007,
the Minister had been in office for less than a year but had a chest
full of military ribbons that would rival the U.S. Chairman of the
Joint Chiefs. Presumably he transferred them directly from his old
State Customs uniform.
The Ministry of Everything Significant (MES)
-------------------------------------------- BAKU 00000127 002 OF 004
¶5. (SBU) The Ministry of Emergency Situations (MES) has consistently
proven itself to be one of the most powerful ministries in Azerbaijan.
It is suspected to have the largest revenue of any Ministry. It even
has its own para-military unit, consistent with other such ministries
in the CIS. Heydarov mentioned to a visiting Washington VIP in 2008
that his ministry had recently taken control of an anti-aircraft
battery near Baku in which he had served as a young conscript during
Soviet times. The Ministry now controls the fire departments and other
emergency services, fire code inspections, state grain reserves, and
construction licensing. This last area of responsibility (perhaps
the most important for foreign entities operating in Azerbaijan)
also covers building inspectors who can interfere with, delay, or
stop any construction project they declare to be â~@~\unsafe.â~@~]
In fact, MES staff have previously warned American and other foreign
businessmen that their purview covers anything that is associated with
temperature, pressure, or isotopes -- categories broadly interpreted
to include just about everything under the sun.
¶6. (SBU) It is often said mockingly that in Azerbaijanâ~@~Ys
judicial system, one can only win a case if one is friends with the
judge - or if introduced by Benjamin Franklin (read: significant
cash). Of course being known to the judge as politically powerful
is another path to courtroom victory. The path to certifying a
buildingâ~@~Ys safety is likely similar, and the true structural
integrity of Bakuâ~@~Ys recent construction boom is suspect. In 2007,
a multi-story high-rise under construction crashed to the ground,
killing several workers. In January 2010, three workers were killed
when they fell from a building under construction on high-rent
Neftchiler Prospect (reftel). Suspect construction is widespread
in Baku, as new, speculative real estate ventures in central Baku
(including high-rise buildings) are largely vacant, while practical
buyers bid up the prices of flats in â~@~\Stalin-kaâ~@~] buildings
that pre-date independence. These older buildings, which tend to be
low-rise, are thought to have had higher construction standards and
generally be safer and more dependable.
¶7. (S) These types of market developments do not bode well for the
reputation of MES, which is widely viewed as a cash cow for Bakuâ~@~Ys
elite, and the Heydarov family in particular. If an event such as an
earthquake led to widespread destruction of property, it is assumed
that outrage would be private, rather than public, and would not
boil over into attacks on contractors or corrupt bureaucrats, as was
the case after the 1999 earthquake in Istanbul. Some less powerful
contractors would become easy targets, but the true architects of
disaster such as Heydarovâ~@~Ys MES would find a way to use its
resources and the tools of the state to escape any reprisal.
His Boys and Their Toys -----------------------
¶8. (S) Kamaladdinâ~@~Ys two sons, Nijat Heydarov and Tale Heydarov,
have recently expressed a desire to purchase two Gulfstream jets,
valued at $20 million each. The family also owns an Airbus A319
corporate jet that is presently undergoing cabin completion in Basel,
Switzerland. According to initial reports, ownership of the Gulfstreams
would be shared between â~@~\Shams al Sahra FZCOâ~@~] (registered
in Dubai to Tale and Nijat) and Mr. Manouchehr Ahadpur Khangah, with
Shams al Sahra and Kangah each holding 50 percent of each jet. Khangah
was not previously known to the Embassy, but according to information
from Gulfstream appears to be a citizen of both Iran and Azerbaijan
(unclear if he also holds other passports).
Purportedly as part of Patriot Act compliance, Gulfstream asked the
Heydarovs for information that would confirm the lawful sources
of their wealth. The BAKU 00000127 003 OF 004 Heydarovs provided
Gulfstream an overview of their family holdings, and it appears they
own more businesses than any other Azerbaijani family, including
companies in food canning, construction materials, concrete, asphalt,
chemicals, bricks, textiles, CD and DVD production (since licensed
CDs or DVDs are generally unavailable on the local market, these are
certainly all pirated), milk processing, tourism, gypsum materials,
leather, agriculture, pianos, alcohol and spirits, juices, banking,
insurance, and construction.
¶9. (C) One Embassy contact, XXXXXXXXXXXX referred to Khangah as the
Chief Executive Officer or â~@~\front manâ~@~] of a substantial portion
of the Heydarov family conglomerate. This contact noted that while
Khangah is listed as the official owner of various businesses, they
are very much Heydarov-owned operations in which Khangah functions
more as a manager. This source added that Khangahâ~@~Ys role was
mirrored by an unnamed Turkish citizen who controls another segment
of the family businesses.
¶10. (C) Many of the family,s operations are part of the
â~@~\Gilan,â~@~] â~@~\Qabala,â~@~] â~@~\Jala,â~@~] or â~@~\United
Enterprises International (UEI)â~@~] family of companies. Gilan
Holdings is omnipresent in Baku, as the company is one of several major
real estate developers and has been in the forefront of Bakuâ~@~Ys
highly speculative real estate market. Observers compare Gilan to
Dubai World or Nakheel, although admittedly on a smaller scale. The
Heydarovs have largely cornered the fruit juice market in Azerbaijan,
maintaining extremely high prices for locally produced juices and
watered-down juice drinks, while making life difficult -- with the help
of State Customs -- for cheaper competitors from Turkey, Ukraine and
Russia. When USAID tried to support the production and distribution of
pomegranate products in Azerbaijan, they quickly learned that no one
sells pomegranate juice, concentrate, or derivatives from Azerbaijan
without Heydarovâ~@~Ys permission. Azerbaijanâ~@~Ys economy is largely
dominated by monopolistic interests, and observers suggest that the
Heydarovs are at the top of this mountain of non-competition. It is
rumored that the Heydarovs also have interests in the local Pepsi
bottler, the local license for Red Bull, British American Tobacco,
Japan Tobacco, and Imperial Tobacco. Heydarov has readily admitted
to visiting U.S.
delegations that he owns and operates the Caspian Fish Company which
controls the lucrative (and previously Russian Mafia-controlled)
Beluga Caviar production in Azerbaijan.
¶11. (S) The Heydarovs are also active in cultural endeavors.
Kamaladdin Heydarov is a composer and has written a song about
former President Heydar Aliyev that was sung by Azeri singer
Aghadadash Aghayev. His wife is ethnic Korean, and he himself is
quite the Koreaphile; he is President of the Azerbaijan Taekwondo
Federation and owner of the recently opened high-end Korean restaurant
â~@~\Shilla.â~@~] Korean diplomats have confirmed that Heydarov was
the protector for several major business deals, but have complained
that many of these deals have gone awry after the Korean firms refused
to pay adequate patronage to Heydarov.
¶12. (C) Heydarovâ~@~Ys son Tale is the President of The European
Azerbaijan Society (TEAS), and has made rounds to U.S. embassies in
European capitals from his London base. The â~@~\societyâ~@~] purports
to be an independent advocacy group, but its talking points very much
reflect the goals and objectives of the GOAJ. In recent meetings,
Tale and his cohorts have raised â~@~\Armenian aggressionâ~@~] in
Nagorno-Karabakh and â~@~\double standardsâ~@~] of U.S. human rights
and democracy reporting in the region, and complained about efforts
of the U.S. Congress to provide humanitarian assistance within the
Nagorno-Karabakh enclave. Tale and/or Nijat also own the Qabala
Football Club -- perhaps as a small-scale effort to replicate the
Chelsea antics of Russiaâ~@~Ys Roman Abramovich. The Qabala squad is
a virtual United Nations team, with BAKU 00000127 004 OF 004 players
from across Europe, Latin America and Africa -- the best team money
can buy, at least for central Azerbaijan. Both sons were educated in
London and presently live there. Tale holds a B.A. in International
Relations and History from the London School of Economics and
an M.A. in Security and Global Governance from Birkbeck College,
while Nijat holds a B.A. in Politics and East European Studies from
University College London and an M.A. in Management, Organizations,
and Governance from the London School of Economics.
Some newspapers have reported that Tale might return to Baku to become
a Member of Parliament later this year.
Itâ~@~Ys Good to Be King --------------------
¶13. (C) The familyâ~@~Ys influence is strongest in the regions of
Qabala, Masalli, and Lenkeran. Postsuspects that Heydarov continues
to control the tate Customs Committee and wield influence over the
Ministry of Taxes, the Ministry of Ecology and Natural Resources,
and Ministry of Economic Development, which is now led by a former
Ministry of Taxes official. Additionally, of course, Heydarov
profits significantly from widespread activities of the Ministry of
Emergency Situations. That ministry, according to observers, may be
the most sought after employer in official Baku, as Heydarov has made a
reputation for paying salaries on time and in full. Employees benefit
from perks of MES employment, such as the ability to enroll children
in one of Bakuâ~@~Ys best-looking and best-financed public schools.
Measures like these, contacts report, create a loyal following for
the minister among his minions.
Turf Wars: Donâ~@~Yt Cross Kamaladdin ---------------------------------
¶14. (S) Embassy contacts note that Kamaladdin Heydarov is currently
in a â~@~\fight over grainâ~@~] with Minister of Agriculture
Ismat Abbasov, and wants Abbasov replaced by Member of Parliament
Eldar Ibrahimov. Historically, those who have fought with Heydarov
have always fared poorly: Farhad Aliyev and Heydar Babayev were
(in succession) driven out as Minister of Economic Development in
part after falling on Heydarovâ~@~Ys bad side. Both were billed as
reformers, and the economic reforms they were seen to propose stood
to hurt Heydarovâ~@~Ys interests at the State Customs Committee and
the Ministry of Emergency Situations. In addition, some opposition
newspapers had begun to call them potential candidates for the position
of Prime Minister. Feeling threatened by their reform activity
and growing power, Heydarov allegedly put his foot down. Both were
removed from government and their business interests were seriously
damaged. Rumors circulated in 2009 that Heydarov may have even
been behind the assassination of Air Force Chief and Deputy Defense
Minister General Rail Rzayev. The rumors point to the widely-reported
forced landing of Heydarovâ~@~Ys helicopter after it took off without
obtaining flight clearance.
¶15. (U) The next issue of â~@~\Who Owns Whatâ~@~] will profile the
family of Ziya Mammadov, the Minister of Transportation. With so much
of the nationâ~@~Ys oil wealth being poured into road construction,
the Mammadovs also control a significant source of rent-seeking. His
holdings extend to the buses that run throughout Baku. A recent
television report asked if the Mammadovs controlled mysterious
construction company ZQAN Holding; the reporter pointed out the
letters of ZQAN matched the initials of father Ziya, mother Qanira,
son Anar, and daughter Nigar. A ZQAN representative brushed this
aside as innuendo. LU
From: A. Papazian
BY NANORE BARSOUMIAN
ASBAREZ
Tuesday, December 14th, 2010
A U.S. Embassy cable from Baku, leaked by WikiLeaks, gives a report on
Azerbaijan~Rs Heydarov family, ~Sthe second most powerful commercial
family in Azerbaijan,~T noting the lobby efforts of Tale Heydarov,
head of the European Azerbaijan Society (TEAS), especially in regards
to Nagorno-Karabakh.
According to the cable, the Heydarov family~Rs most powerful member
is Kamaladdin Heydarov, who has been the head of the Ministry of
Emergency Situations (MES)~Wotherwise known as ~SThe Ministry of
Everything Significant~T~Wsince 2006. ~SObservers have said he might
be even more powerful than the President himself.~T
~SThe Ministry now controls the fire departments and other emergency
services, fire code inspections, state grain reserves, and construction
licensing. This last area of responsibility (perhaps the most important
for foreign entities operating in Azerbaijan) also covers building
inspectors who can interfere with, delay, or stop any construction
project they declare to be ~Sunsafe.~T In fact, MES staff have
previously warned American and other foreign businessmen that their
purview covers anything that is associated with temperature, pressure,
or isotopes ~W categories broadly interpreted to include just about
everything under the sun.~T
Heydarov has two sons, Nijat and Tale. The cable states: ~SHeydarov~Rs
son Tale is the President of the European Azerbaijan Society (TEAS),
and has made rounds to U.S. embassies in European capitals from
his London base. The ~Ssociety~T purports to be an independent
advocacy group, but its talking points very much reflect the goals
and objectives of the GOAJ [government of Azerbaijan]. In recent
meetings, Tale and his cohorts have raised ~QArmenian aggression~R
in Nagorno-Karabakh and ~Qdouble standards~R of U.S. human rights
and democracy reporting in the region, and complained about efforts
of the U.S. Congress to provide humanitarian assistance within the
Nagorno-Karabakh enclave.~T
The cable was written in February 25, 2010, by Charge d~RAffaires
Don Lu, and was classified secret. It was released by WikiLeaks on
December 6.
The complete cable can be read here.
Viewing cable 10BAKU127, AZERBAIJAN: WHO OWNS WHAT VOL. 2 - THE
MINISTER OF If you are new to these pages, please read an introduction
on the structure of a cable as well as how to discuss them with
others. See also the FAQs
Understanding cables Every cable message consists of three parts:
The top box shows each cables unique reference number, when and by
whom it originally was sent, and what its initial classification was.
The middle box contains the header information that is associated with
the cable. It includes information about the receiver(s) as well as
a general subject.
The bottom box presents the body of the cable. The opening can contain
a more specific subject, references to other cables (browse by origin
to find them) or additional comment. This is followed by the main
contents of the cable: a summary, a collection of specific topics
and a comment section.
To understand the justification used for the classification of each
cable, please use this WikiSource article as reference.
Discussing cables If you find meaningful or important information in a
cable, please link directly to its unique reference number. Linking to
a specific paragraph in the body of a cable is also possible by copying
the appropriate link (to be found at theparagraph symbol). Please
mark messages for social networking services like Twitter with the
hash tags #cablegate and a hash containing the reference ID e.g.
#10BAKU127.
Reference ID Created Released Classification Origin 10BAKU127
2010-02-25 05:05 2010-12-12 21:09 SECRET Embassy Baku VZCZCXRO2618
PP RUEHDBU DE RUEHKB #0127/01 0560518 ZNY SSSSS ZZH P 250518Z FEB
10 FM AMEMBASSY BAKU TO RUEHC/SECSTATE WASHDC PRIORITY 2424 INFO
RUCNCIS/CIS COLLECTIVE PRIORITY RUEHAK/AMEMBASSY ANKARA PRIORITY
3798 RUEHLO/AMEMBASSY LONDON PRIORITY 0469 RUEHSI/AMEMBASSY TBILISI
PRIORITY 1926 RUEHIT/AMCONSUL ISTANBUL PRIORITY 0210 RUCPDOC/DEPT OF
COMMERCE WASHDC PRIORITY RUEKDIA/DIA WASHDC PRIORITY RHEHNSC/NSC WASHDC
PRIORITY RUEAIIA/CIA WASHINGTON DC PRIORITY RUEATRS/DEPT OF TREASURY
WASHDC PRIORITY RUEHVEN/USMISSION USOSCE PRIORITY 1563 RUEHBS/USEU
BRUSSELS PRIORITYS E C R E T SECTION 01 OF 04 BAKU 000127
SIPDIS
COMMERCE FOR D.STARKS EEB/CBA FOR T.GILMAN DEPT PLEASE PASS TO USTR
FOR C. MORROW AND P. BURKHEAD
EO 12958 DECL: 02/24/2020 TAGS ECON, EINV, EIND, ETRD, KCOR, PINR,
PGOV, RS, KS, IR, TU, AJ
SUBJECT: AZERBAIJAN: WHO OWNS WHAT VOL. 2 - THE MINISTER OF EMERGENCY
SITUATIONS, BELUGA CAVIAR, AND FRUIT JUICE (C-RE9-02494; C-RE9-02493;
C-RE9-02492) REF: BAKU 54
Classified By: XXXXXXXXXXXX a.i., for reasons 1.4(b) and ( d).
¶1. (S) SUMMARY: This cable is the second in a series that profiles
the most powerful families in Azerbaijan, both in terms of economic and
political power. This issue features Minister of Emergency Situations
Kamaladdin Heydarov and his family. Heydarov was previously Chairman of
the State Customs Committee, and his hand-picked successor now operates
that agency, one of the most corrupt operations in Azerbaijan. The
Heydarov family, which controls a business empire in Azerbaijan
ranging from fruit juice production to real estate development, is
the second most powerful commercial family in Azerbaijan, after the
Pashayev family (into which President Aliyev married). End Summary.
The Man Behind the Power ------------------------
¶2. (S) Kamaladdin Heydarov is the most powerful member of this
family, and some observers have said he might be even more powerful
than the President himself. (COMMENT: Post does not believe this
is true, although Heydarov controls more visible assets and wealth
within the country than the President. End Comment.) His father,
Fattah Heydarov, is a Member of Parliament from the mountainous Qabala
district, which serves as a home base for the family outside Baku.
Fattah was Secretary of the Ordubad (and later Julfa) District Party
Committee during Soviet times, and served as Minister of the Welfare
Service of Nakhchivan from 1976 to 1978 and later as Nakhchivanâ~@~Ys
Minister of Culture from 1983 to 1995.
¶3. (S) Kamaladdin Heydarov was Chairman of the State Customs
Committee for nine years, and since 2006 has been head of the
para-military Ministry of Emergency Situations (MES), which acts as
a super-Federal Emergency Management Agency, Fire Marshall, health
and safety inspector, and overall regulator of many aspects of the
economy. Born in 1961, he holds a degree in Geology and International
Law from the Azerbaijan State University. He held executive positions
in a number of private and public enterprises prior to his appointment
at the ripe old age of 35 as Chairman of the State Customs Committee
(SCC), an agency that is notoriously corrupt, even by Azerbaijani
standards. Heydarovâ~@~Ys rise to power was partly a result of the
strong relationship between his father Fattah and former President
Heydar Aliyev (also from Nakhchivan), but also partly a result of
Heydarovâ~@~Ys strong management skills. As he gained wealth for the
ruling party, Heydar Aliyevâ~@~Ys respect for him grew, until finally
he was entrusted with the valuable role of Chairman of the SCC.
¶4. (S) The State Customs position allowed him to gain his massive
wealth, as significant illicit payments were paid â~@~\up the food
chainâ~@~] in an elaborate and well-orchestrated system of payoff and
patronage. Heydarov likely still enjoys a sizeable income from the
SCC, as it is controlled by his loyal successor. When President Ilham
Aliyev appointed Heydarov as Minister of Emergency Situations in 2006,
he was replaced at the SCC by his Deputy Aydin Aliyev. Aydin Aliyev is
not related to President Aliyev, and Heydarov is Aydin Aliyevâ~@~Ys
sole benefactor, a symbiotic relationship in which Aliyev presumably
gives undying loyalty (and a hefty cut) to the powerful Heydarov in
order to retain his position. When Charge first met Heydarov in 2007,
the Minister had been in office for less than a year but had a chest
full of military ribbons that would rival the U.S. Chairman of the
Joint Chiefs. Presumably he transferred them directly from his old
State Customs uniform.
The Ministry of Everything Significant (MES)
-------------------------------------------- BAKU 00000127 002 OF 004
¶5. (SBU) The Ministry of Emergency Situations (MES) has consistently
proven itself to be one of the most powerful ministries in Azerbaijan.
It is suspected to have the largest revenue of any Ministry. It even
has its own para-military unit, consistent with other such ministries
in the CIS. Heydarov mentioned to a visiting Washington VIP in 2008
that his ministry had recently taken control of an anti-aircraft
battery near Baku in which he had served as a young conscript during
Soviet times. The Ministry now controls the fire departments and other
emergency services, fire code inspections, state grain reserves, and
construction licensing. This last area of responsibility (perhaps
the most important for foreign entities operating in Azerbaijan)
also covers building inspectors who can interfere with, delay, or
stop any construction project they declare to be â~@~\unsafe.â~@~]
In fact, MES staff have previously warned American and other foreign
businessmen that their purview covers anything that is associated with
temperature, pressure, or isotopes -- categories broadly interpreted
to include just about everything under the sun.
¶6. (SBU) It is often said mockingly that in Azerbaijanâ~@~Ys
judicial system, one can only win a case if one is friends with the
judge - or if introduced by Benjamin Franklin (read: significant
cash). Of course being known to the judge as politically powerful
is another path to courtroom victory. The path to certifying a
buildingâ~@~Ys safety is likely similar, and the true structural
integrity of Bakuâ~@~Ys recent construction boom is suspect. In 2007,
a multi-story high-rise under construction crashed to the ground,
killing several workers. In January 2010, three workers were killed
when they fell from a building under construction on high-rent
Neftchiler Prospect (reftel). Suspect construction is widespread
in Baku, as new, speculative real estate ventures in central Baku
(including high-rise buildings) are largely vacant, while practical
buyers bid up the prices of flats in â~@~\Stalin-kaâ~@~] buildings
that pre-date independence. These older buildings, which tend to be
low-rise, are thought to have had higher construction standards and
generally be safer and more dependable.
¶7. (S) These types of market developments do not bode well for the
reputation of MES, which is widely viewed as a cash cow for Bakuâ~@~Ys
elite, and the Heydarov family in particular. If an event such as an
earthquake led to widespread destruction of property, it is assumed
that outrage would be private, rather than public, and would not
boil over into attacks on contractors or corrupt bureaucrats, as was
the case after the 1999 earthquake in Istanbul. Some less powerful
contractors would become easy targets, but the true architects of
disaster such as Heydarovâ~@~Ys MES would find a way to use its
resources and the tools of the state to escape any reprisal.
His Boys and Their Toys -----------------------
¶8. (S) Kamaladdinâ~@~Ys two sons, Nijat Heydarov and Tale Heydarov,
have recently expressed a desire to purchase two Gulfstream jets,
valued at $20 million each. The family also owns an Airbus A319
corporate jet that is presently undergoing cabin completion in Basel,
Switzerland. According to initial reports, ownership of the Gulfstreams
would be shared between â~@~\Shams al Sahra FZCOâ~@~] (registered
in Dubai to Tale and Nijat) and Mr. Manouchehr Ahadpur Khangah, with
Shams al Sahra and Kangah each holding 50 percent of each jet. Khangah
was not previously known to the Embassy, but according to information
from Gulfstream appears to be a citizen of both Iran and Azerbaijan
(unclear if he also holds other passports).
Purportedly as part of Patriot Act compliance, Gulfstream asked the
Heydarovs for information that would confirm the lawful sources
of their wealth. The BAKU 00000127 003 OF 004 Heydarovs provided
Gulfstream an overview of their family holdings, and it appears they
own more businesses than any other Azerbaijani family, including
companies in food canning, construction materials, concrete, asphalt,
chemicals, bricks, textiles, CD and DVD production (since licensed
CDs or DVDs are generally unavailable on the local market, these are
certainly all pirated), milk processing, tourism, gypsum materials,
leather, agriculture, pianos, alcohol and spirits, juices, banking,
insurance, and construction.
¶9. (C) One Embassy contact, XXXXXXXXXXXX referred to Khangah as the
Chief Executive Officer or â~@~\front manâ~@~] of a substantial portion
of the Heydarov family conglomerate. This contact noted that while
Khangah is listed as the official owner of various businesses, they
are very much Heydarov-owned operations in which Khangah functions
more as a manager. This source added that Khangahâ~@~Ys role was
mirrored by an unnamed Turkish citizen who controls another segment
of the family businesses.
¶10. (C) Many of the family,s operations are part of the
â~@~\Gilan,â~@~] â~@~\Qabala,â~@~] â~@~\Jala,â~@~] or â~@~\United
Enterprises International (UEI)â~@~] family of companies. Gilan
Holdings is omnipresent in Baku, as the company is one of several major
real estate developers and has been in the forefront of Bakuâ~@~Ys
highly speculative real estate market. Observers compare Gilan to
Dubai World or Nakheel, although admittedly on a smaller scale. The
Heydarovs have largely cornered the fruit juice market in Azerbaijan,
maintaining extremely high prices for locally produced juices and
watered-down juice drinks, while making life difficult -- with the help
of State Customs -- for cheaper competitors from Turkey, Ukraine and
Russia. When USAID tried to support the production and distribution of
pomegranate products in Azerbaijan, they quickly learned that no one
sells pomegranate juice, concentrate, or derivatives from Azerbaijan
without Heydarovâ~@~Ys permission. Azerbaijanâ~@~Ys economy is largely
dominated by monopolistic interests, and observers suggest that the
Heydarovs are at the top of this mountain of non-competition. It is
rumored that the Heydarovs also have interests in the local Pepsi
bottler, the local license for Red Bull, British American Tobacco,
Japan Tobacco, and Imperial Tobacco. Heydarov has readily admitted
to visiting U.S.
delegations that he owns and operates the Caspian Fish Company which
controls the lucrative (and previously Russian Mafia-controlled)
Beluga Caviar production in Azerbaijan.
¶11. (S) The Heydarovs are also active in cultural endeavors.
Kamaladdin Heydarov is a composer and has written a song about
former President Heydar Aliyev that was sung by Azeri singer
Aghadadash Aghayev. His wife is ethnic Korean, and he himself is
quite the Koreaphile; he is President of the Azerbaijan Taekwondo
Federation and owner of the recently opened high-end Korean restaurant
â~@~\Shilla.â~@~] Korean diplomats have confirmed that Heydarov was
the protector for several major business deals, but have complained
that many of these deals have gone awry after the Korean firms refused
to pay adequate patronage to Heydarov.
¶12. (C) Heydarovâ~@~Ys son Tale is the President of The European
Azerbaijan Society (TEAS), and has made rounds to U.S. embassies in
European capitals from his London base. The â~@~\societyâ~@~] purports
to be an independent advocacy group, but its talking points very much
reflect the goals and objectives of the GOAJ. In recent meetings,
Tale and his cohorts have raised â~@~\Armenian aggressionâ~@~] in
Nagorno-Karabakh and â~@~\double standardsâ~@~] of U.S. human rights
and democracy reporting in the region, and complained about efforts
of the U.S. Congress to provide humanitarian assistance within the
Nagorno-Karabakh enclave. Tale and/or Nijat also own the Qabala
Football Club -- perhaps as a small-scale effort to replicate the
Chelsea antics of Russiaâ~@~Ys Roman Abramovich. The Qabala squad is
a virtual United Nations team, with BAKU 00000127 004 OF 004 players
from across Europe, Latin America and Africa -- the best team money
can buy, at least for central Azerbaijan. Both sons were educated in
London and presently live there. Tale holds a B.A. in International
Relations and History from the London School of Economics and
an M.A. in Security and Global Governance from Birkbeck College,
while Nijat holds a B.A. in Politics and East European Studies from
University College London and an M.A. in Management, Organizations,
and Governance from the London School of Economics.
Some newspapers have reported that Tale might return to Baku to become
a Member of Parliament later this year.
Itâ~@~Ys Good to Be King --------------------
¶13. (C) The familyâ~@~Ys influence is strongest in the regions of
Qabala, Masalli, and Lenkeran. Postsuspects that Heydarov continues
to control the tate Customs Committee and wield influence over the
Ministry of Taxes, the Ministry of Ecology and Natural Resources,
and Ministry of Economic Development, which is now led by a former
Ministry of Taxes official. Additionally, of course, Heydarov
profits significantly from widespread activities of the Ministry of
Emergency Situations. That ministry, according to observers, may be
the most sought after employer in official Baku, as Heydarov has made a
reputation for paying salaries on time and in full. Employees benefit
from perks of MES employment, such as the ability to enroll children
in one of Bakuâ~@~Ys best-looking and best-financed public schools.
Measures like these, contacts report, create a loyal following for
the minister among his minions.
Turf Wars: Donâ~@~Yt Cross Kamaladdin ---------------------------------
¶14. (S) Embassy contacts note that Kamaladdin Heydarov is currently
in a â~@~\fight over grainâ~@~] with Minister of Agriculture
Ismat Abbasov, and wants Abbasov replaced by Member of Parliament
Eldar Ibrahimov. Historically, those who have fought with Heydarov
have always fared poorly: Farhad Aliyev and Heydar Babayev were
(in succession) driven out as Minister of Economic Development in
part after falling on Heydarovâ~@~Ys bad side. Both were billed as
reformers, and the economic reforms they were seen to propose stood
to hurt Heydarovâ~@~Ys interests at the State Customs Committee and
the Ministry of Emergency Situations. In addition, some opposition
newspapers had begun to call them potential candidates for the position
of Prime Minister. Feeling threatened by their reform activity
and growing power, Heydarov allegedly put his foot down. Both were
removed from government and their business interests were seriously
damaged. Rumors circulated in 2009 that Heydarov may have even
been behind the assassination of Air Force Chief and Deputy Defense
Minister General Rail Rzayev. The rumors point to the widely-reported
forced landing of Heydarovâ~@~Ys helicopter after it took off without
obtaining flight clearance.
¶15. (U) The next issue of â~@~\Who Owns Whatâ~@~] will profile the
family of Ziya Mammadov, the Minister of Transportation. With so much
of the nationâ~@~Ys oil wealth being poured into road construction,
the Mammadovs also control a significant source of rent-seeking. His
holdings extend to the buses that run throughout Baku. A recent
television report asked if the Mammadovs controlled mysterious
construction company ZQAN Holding; the reporter pointed out the
letters of ZQAN matched the initials of father Ziya, mother Qanira,
son Anar, and daughter Nigar. A ZQAN representative brushed this
aside as innuendo. LU
From: A. Papazian