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Azerbaijan: Insider Deals Thrive In Ministry
http://hetq.am/eng/news/25459/azerbaijan-insider-deals-thrive-in-ministry.html
15:04, April 13, 2013
Family members of Azerbaijan's Transport Minister and a prominent
Azerbaijan company that does business with the ministry have close
ties, raising serious questions about conflict of interest in the
ministry's activities.
Minister Ziya Mammadov's son, Anar, and the Minister's brother, Elton,
are business partners with the members of the family of the founder of
the Baghlan Group, a prominent Azerbaijan company involved in major
projects in transportation, construction, sports complexes and oil
exploration.
The Organized Crime and Corruption Reporting Project and Radio Free
Europe/Radio Liberty (RFE/RL) found that Baghlan was the contractor on
a series of major initiatives by the Ministry including the importing
of 1,000 London taxis to Baku, the construction of an international
bus station, and a lucrative road construction project.
The Group has received preferential treatment and the interlinked
companies owned by the families have taken large shares or even
monopolized certain transportation sectors like bus transport, taxis,
road constraction, and cargo transportation services in the country.
Businessman Hafiz Mammadov, who is not related to the minister,
founded`Baghlan Group FZCO' which was registered in 2007 in the United
Arab Emirates. The ties between the families include co-ownership of
the Bank of Azerbaijan and a joint project to build an international
bus station in Baku. Both families have top executives in the Baku
Football Club. Companies owned by Anar Mammadov are also listed as
members of the Baghlan Group companies. The Baghlan Group website is
registered at the same address as a division of the Ministry of
Transport.
At the same time, Baghlan Group companies have received lucrative,
apparently non-competitive contracts to import and operate taxis and
buses, and to build roads. The contracts were all approved by the
Ministry of Transport.
`One of our fundamental objectives is to improve country's transport
infrastructure, including optimization of the local public transport
system,' Hafiz Mammadov states in a Chairman's statement on the
Baghlan Group website.
According to that website, the company owns the the country's largest
taxi company which operates more than 1000 London-style black cabs.
The Group's bus company is also the country's largest with a fleet of
`hundreds of buses' that carry over one-fifth of all bus passengers
within Baku.
At a 2013 meeting chaired by Azerbaijan President Ilham Aliyev,
Transport Minister Mammadov spoke of the need for 2,000 new taxis and
1,200 new buses. After the Minister's presentation,President Aliyev
said: `We must approach this issue comprehensively. Of course we
should update the vehicle fleet. We should bring in the new buses and
taxis.'
The London taxis were imported by the Baki Taxsi Company at a cost of
US$28,000 apiece, in time for the city to host the Eurovision 2012
Song Contest. Baki Taxsi proposed importing the taxis and the Ministry
of Transport agreed, Ilqar Qasimov said. There is no evidence that any
tenders were ever issued.
The Baki Taxsi Company was registered at the Ministry of Taxes in
April of 2010. The founder of the company is listed as Murad Farhad
oglu Gasimov.
Baki Taxsi Director Ilqar Qasimov confirms that the company was
actually established by the Baghlan Group, and that the Baghlan Group
manages all the record-keeping and other official business for Baki
Taxsi. Qasimov says there is a plan to import London taxis for use in
other Azeri cities.
Read More
https://reportingproject.net/occrp/index.php/en/ccwatch/cc-watch-indepth/1907-azerbaijan-insider-deals-thrive-in-ministry
From: Baghdasarian
http://hetq.am/eng/news/25459/azerbaijan-insider-deals-thrive-in-ministry.html
15:04, April 13, 2013
Family members of Azerbaijan's Transport Minister and a prominent
Azerbaijan company that does business with the ministry have close
ties, raising serious questions about conflict of interest in the
ministry's activities.
Minister Ziya Mammadov's son, Anar, and the Minister's brother, Elton,
are business partners with the members of the family of the founder of
the Baghlan Group, a prominent Azerbaijan company involved in major
projects in transportation, construction, sports complexes and oil
exploration.
The Organized Crime and Corruption Reporting Project and Radio Free
Europe/Radio Liberty (RFE/RL) found that Baghlan was the contractor on
a series of major initiatives by the Ministry including the importing
of 1,000 London taxis to Baku, the construction of an international
bus station, and a lucrative road construction project.
The Group has received preferential treatment and the interlinked
companies owned by the families have taken large shares or even
monopolized certain transportation sectors like bus transport, taxis,
road constraction, and cargo transportation services in the country.
Businessman Hafiz Mammadov, who is not related to the minister,
founded`Baghlan Group FZCO' which was registered in 2007 in the United
Arab Emirates. The ties between the families include co-ownership of
the Bank of Azerbaijan and a joint project to build an international
bus station in Baku. Both families have top executives in the Baku
Football Club. Companies owned by Anar Mammadov are also listed as
members of the Baghlan Group companies. The Baghlan Group website is
registered at the same address as a division of the Ministry of
Transport.
At the same time, Baghlan Group companies have received lucrative,
apparently non-competitive contracts to import and operate taxis and
buses, and to build roads. The contracts were all approved by the
Ministry of Transport.
`One of our fundamental objectives is to improve country's transport
infrastructure, including optimization of the local public transport
system,' Hafiz Mammadov states in a Chairman's statement on the
Baghlan Group website.
According to that website, the company owns the the country's largest
taxi company which operates more than 1000 London-style black cabs.
The Group's bus company is also the country's largest with a fleet of
`hundreds of buses' that carry over one-fifth of all bus passengers
within Baku.
At a 2013 meeting chaired by Azerbaijan President Ilham Aliyev,
Transport Minister Mammadov spoke of the need for 2,000 new taxis and
1,200 new buses. After the Minister's presentation,President Aliyev
said: `We must approach this issue comprehensively. Of course we
should update the vehicle fleet. We should bring in the new buses and
taxis.'
The London taxis were imported by the Baki Taxsi Company at a cost of
US$28,000 apiece, in time for the city to host the Eurovision 2012
Song Contest. Baki Taxsi proposed importing the taxis and the Ministry
of Transport agreed, Ilqar Qasimov said. There is no evidence that any
tenders were ever issued.
The Baki Taxsi Company was registered at the Ministry of Taxes in
April of 2010. The founder of the company is listed as Murad Farhad
oglu Gasimov.
Baki Taxsi Director Ilqar Qasimov confirms that the company was
actually established by the Baghlan Group, and that the Baghlan Group
manages all the record-keeping and other official business for Baki
Taxsi. Qasimov says there is a plan to import London taxis for use in
other Azeri cities.
Read More
https://reportingproject.net/occrp/index.php/en/ccwatch/cc-watch-indepth/1907-azerbaijan-insider-deals-thrive-in-ministry
From: Baghdasarian