Mukhtar Ablyazov: Difference between revisions
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In 2009 BTA Bank commenced civil proceedings against Ablyazov in order to recover assets lost during his leadership.<ref>[http://www.ft.com/cms/s/0/050d003a-6f4a-11df-9f43-00144feabdc0,s01=1.html Lessons to be learnt from Kazakhstan] - ''Gillian Tett, The Financial Times, 3 June 2010</ref> Since August 2009 the High Court in London has found sufficient cause to freeze Ablyazov’s assets and confiscate his passport.<ref>[http://www.businessweek.com/news/2010-08-03/glitnir-among-lenders-winning-asset-freezes-in-u-k-.html Glitnir Among Lenders Winning Asset Freezes in U.K.] - ''Bloomberg Businessweek, Erik Larson, 3 August 2010</ref> |
In 2009 BTA Bank commenced civil proceedings against Ablyazov in order to recover assets lost during his leadership.<ref>[http://www.ft.com/cms/s/0/050d003a-6f4a-11df-9f43-00144feabdc0,s01=1.html Lessons to be learnt from Kazakhstan] - ''Gillian Tett, The Financial Times, 3 June 2010</ref> Since August 2009 the High Court in London has found sufficient cause to freeze Ablyazov’s assets and confiscate his passport.<ref>[http://www.businessweek.com/news/2010-08-03/glitnir-among-lenders-winning-asset-freezes-in-u-k-.html Glitnir Among Lenders Winning Asset Freezes in U.K.] - ''Bloomberg Businessweek, Erik Larson, 3 August 2010</ref> |
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Mr Ablyazov has lodged claims totalling $3bn against the Kazakh government under UN investment protection treaties, alleging that the bank was taken from him illegally.<ref>[http://www.thebanker.com/index.php//Regulation-Policy/Management-Strategy/Dispute-casts-shadow-over-BTA-Bank-s-restructuring] - The Banker, 28 July, 2010: 'Dispute casts shadow over BTA Bank's restructuring.' </ref> |
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==Exile and litigation== |
==Exile and litigation== |
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In a judgement from July 2010 Justice Teare stated that "consideration of [Ablyazov's] conduct with regard to disclosure of his assets in August/September 2009 … has left me unable to trust him not to deal with his assets in breach of the freezing order."<ref>[http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWHC/Comm/2010/1779.html&query=bta&method=boolean] ''Royal Court's of Justice, Neutral Citation Number: [2010] EWHC 1779 (Comm), JSC BTA Bank vs Mukhtar Ablyazov</ref> |
In a judgement from July 2010 Justice Teare stated that "consideration of [Ablyazov's] conduct with regard to disclosure of his assets in August/September 2009 … has left me unable to trust him not to deal with his assets in breach of the freezing order."<ref>[http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWHC/Comm/2010/1779.html&query=bta&method=boolean] ''Royal Court's of Justice, Neutral Citation Number: [2010] EWHC 1779 (Comm), JSC BTA Bank vs Mukhtar Ablyazov</ref> |
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===Appeal for assylum in the UK=== |
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Ablyazov has appealed for political assylum in the UK. However, the Kazakhs are lobbying Foreign Office ministers not to grant him asylum, which they say could jeopardise Britain’s ties with Kazakhstan. The Kazakh government warned it will punish British firms by awarding lucrative contracts to China if Mr Ablyazov is granted asylum. <ref>[http://www.telegraph.co.uk/news/worldnews/asia/kazakhstan/7958777/Asylum-case-could-lead-to-rift-with-Kazakhstan.html] - The Daily Telegraph, 22 August, 2010 |
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===Arrest warrant in Kazakhstan=== |
===Arrest warrant in Kazakhstan=== |
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Revision as of 18:50, 29 January 2011
Mukhtar Ablyazov (born 16 May 1963, Galkino Village, South-Kazakhstan) is a Kazakh businessman, former banker, and co-founder of the Democratic Choice of Kazakhstan (DCK), opposition political movement. He is currently the subject of a legal investigation in the UK High Court after he allegedly embezzled billions of dollars out of BTA Bank between 2005 and 2009.[1]
Career history
In 1992 Ablyazov established Astana Holding in Kazakhstan, a multi-sector private holding company.
In 1998, together with a consortium of Kazakhstan investors, he acquired shares in Bank TuranAlem, which later became known as BTA Bank, for $72 million[2] in a privatization auction.
Ablyazov was appointed as head of the state-owned Kazakhstan Electricity Grid Operating Company in 1997 and in 1998 was appointed as Minister for Energy, Industry and Trade.[3]
Political career
In November 2001, Ablyazov co-founded the Democratic Choice of Kazakhstan (DCK), an opposition political movement challenging the current president, Nursultan Nazarbayev.
The DCK included a combination of existing politicians and major businessmen and called for decentralisation of political power, a strong legislature and an independent judiciary to balance the power concentrated in the executive branch.
In July 2002, Ablyazov was convicted of ‘abusing official powers as a minister’ and sentenced to six years in prison. These charges were considered by many to be politically motivated, including the European Parliament [4] and Amnesty International [5]. The trial failed to meet international fair trial standards.[6]. It is alleged that he was subject to torture, beatings and other ill-treatment whilst he was in prison. [7] After pressure from the international community, including the OSCE, US Department of State, Amnesty International and the European Parliament [8] he was released in May 2003 after only serving ten months, on the condition that he renounce politics.[9]
Ablyazov moved to Moscow in 2003 to rebuild his business ties and in 2005 became the Chairman of the Board of Directors of BTA Bank.
BTA Bank
Ablyazov served as the Chairman of the Board of Directors of BTA Bank from 2005 to 2009. During this period the bank grew rapidly, however growth in loans was not matched by equivalent growth in deposits with led to latent credit risks. By 2009, BTA Bank had the highest percentage of bad loans of any Kazakh bank, accounting for 53.94% of all non-performing loans in Kazakhstan.[10]
The Kazakh regulator's attention was drawn to BTA initially because of fears of deteriorating asset quality voiced in an independent report in 2007. When following up this report in 2008 Kazakh regulators failed to get satisfactory answers to their questions. When BTA was unable to achieve satisfactory solvency levels, the whole banking system was at risk and thus the regulator felt obliged to step in and the Kazakh Sovereign Wealth Fund, Samruk-Kazyna, injected significant funds to save the Bank.[11]
In 2009 BTA Bank commenced civil proceedings against Ablyazov in order to recover assets lost during his leadership.[12] Since August 2009 the High Court in London has found sufficient cause to freeze Ablyazov’s assets and confiscate his passport.[13]
Mr Ablyazov has lodged claims totalling $3bn against the Kazakh government under UN investment protection treaties, alleging that the bank was taken from him illegally.[14]
Exile and litigation
UK litigation and asset recovery
In 2009 BTA Bank launched legal proceedings against Ablyazov in the English High Court as a part of its restructuring agreement with creditors to recover assets allegedly misappropriated by Ablyazov during his tenure at BTA Bank.[15][16] The cases involve companies registered in the Netherlands, Cyprus, the UK, Switzerland, Russia and the British Virgin Islands, among others.[17]
Ablyazov is the subject of four legal claims in the English High Court totalling $2bn (£1.3bn). In October 2010 Ablyazov lost a legal fight to prevent his assets from being subject to a receivership order, this came after Justice Teare ruled that Ablyazov "cannot be trusted" not to dissipate assets prior to trial.[18]
In a judgement from July 2010 Justice Teare stated that "consideration of [Ablyazov's] conduct with regard to disclosure of his assets in August/September 2009 … has left me unable to trust him not to deal with his assets in breach of the freezing order."[19]
Appeal for assylum in the UK
Ablyazov has appealed for political assylum in the UK. However, the Kazakhs are lobbying Foreign Office ministers not to grant him asylum, which they say could jeopardise Britain’s ties with Kazakhstan. The Kazakh government warned it will punish British firms by awarding lucrative contracts to China if Mr Ablyazov is granted asylum. Cite error: A <ref> tag is missing the closing </ref> (see the help page).[20][21][22]
Arrest warrant in Russia
The Russian Interior Ministry's Investigative Committee also requested a warrant for Ablyazov's arrest in Russia where he has been charged on four counts of financial crime, including a $5 billion fraud. He is currently on an international wanted list in Russia.[23]
References
- ^ [1] - Living in fear in London: the exiled Kazakh banker accused of $2 billion fraud, The Evening Standard, Paul Cheston, 25 August 2010
- ^ Kazakhstan's Bank Lending Frozen in Subprime Squeeze - Elliot Blair Smith, Bloomberg, 21 December 2007
- ^ BBC Timeline: Kazakhstan - BBC, A chronology of key events, 11 March 2010
- ^ [2] - European Parliament Resolution on Kazakhstan
- ^ [3] - 'Amnesty International Report on Kazakhstan 2003
- ^ [4] - 'Amnesty International Report on Kazakhstan 2003
- ^ [5] - Amnesty International Report 2004 - Kazakstan
- ^ [6] Evening Standard, 25 August 2010, 'Living in fear in London'
- ^ BBC Timeline: Kazakhstan - BBC, A chronology of key events, 11 March 2010
- ^ [7] - Kazakhstan Agency for Regulation and Supervision of Financial Markets and Financial Regulation
- ^ [8] - Kazakh bank BTA signs debt restructuring MOU Reuters, 22 September
- ^ Lessons to be learnt from Kazakhstan - Gillian Tett, The Financial Times, 3 June 2010
- ^ Glitnir Among Lenders Winning Asset Freezes in U.K. - Bloomberg Businessweek, Erik Larson, 3 August 2010
- ^ [9] - The Banker, 28 July, 2010: 'Dispute casts shadow over BTA Bank's restructuring.'
- ^ Taxpayers set for cash boost in banker case - Sam Marsden, Press Association, 21 July 2010
- ^ [10] - RBS sues Kazakh over '£1bn fraud', 22 July 2010
- ^ [11] - BTA Bank Restructuring Plan Information Memorandum, 28 May 2010
- ^ [12] Kazakh Banker Loses Courtroom Battle Over Assets, 3 December 2010
- ^ [13] Royal Court's of Justice, Neutral Citation Number: [2010] EWHC 1779 (Comm), JSC BTA Bank vs Mukhtar Ablyazov
- ^ Taxpayers set for cash boost in banker case - Sam Marsden, Press Association, 21 July 2010
- ^ Fugitive Kazakh Banker Accuses Government - Reuters, 11 March 2009
- ^ [14] - Vedomosti, Page 6
- ^ [15] -Russia to enter ex-head of Kazakh bank on intl wanted list, Interfax, 5 July 2010