Last week the president Ilham Aliyev surprised the whole world by the radical changes in the cabinet. The sudden news about the removal of the Minister of Economic Development Farhad Aliyev on the 19-th of October, followed by the dismissal of the Minister of Healthcare Ali Insanov caused lots of talks about the internal disputes in the Azerbaijani authority. This news initiated plenty of rumors about the run-away of the rest of the cabinet (25-OCT-2005).
This series of the changes is called the most important step Aliyev-son made since he came to power. Since the first day of his presidency the necessity of the change of the team was on agenda, but his passiveness was explained by the fear to get rid of the influential personalities, which were a core team of his father Heydar Aliyev and which actually helped himself to come to power.
Farhad Aliyev and Rafig Aliyev
The big ?clean-up? process started with the dismissal of the Minister of Economic Development Farhad Aliyev (on the right, photo 1) on the 19-th of October. He was considered one of the most influential oligarchs of Azerbaijan with his ownership of dozens of large companies, which brought revenue of hundreds of millions of dollars per year. Farkhad Aliev was also considered to be the money man of the ruling elite. The charges against Aliyev were allegedly based on testimony by Fikret Yusifov, a former finance minister who was arrested the night of October 16/17. Both of them were charged with arranging financing for opposition clashes against the police on the eve of Rasul Guliyev?s planned return. According to the information of the National Security Ministry, on the 15-th of October Farhad Aliyev gave Yusifov 100,000 Euro to organize the ceremony of Rasul Guliyev?s welcoming in Baku airport on October 17. Farhad Aliyev was charged under 4 articles: 179.3 (misappropriation and embezzlement), 308.2 (abuse of duties), 28,220 (planning disturbances) and 279 (seizure of power by force).
Besides, Farhad Aliyev?s brother ?Rafig Aliyev, who headed the largest South Caucasian private oil company Azpetrol, was arrested on the same day before his business trip to Turkey. He controlled 90 percent of Azerbaijan?s gas stations.
According to the preliminary search by the Ministry of National Security, Ministry of Interior and General Prosecutor in the office, flat, country house and objects belonging to Farhad Aliyev, there was revealed and withdrawn: $56,000, 36,000 EUR, 34 “valuable art works” and other valuable things. $565,000 and 5 billion and 609 million manats not included into cash were withdrawn in the office of Azpetrol. A large amount of gold and valuable things, as well as 7 pistols and hunting rifles were found in the above mentioned addresses. [TuranInfo]
The arrest of two most close people to the president caused lots of analysis of the situation.
The first logical version came out of the fact that on the 19-th of October the Head of State Committee for Securities under the authentic of the president of Azerbaijan Heydar Babayev was appointed the new Minister for Economic Development instead of the dismissed Farhad Aliyev. Heydar Babayev is one of the richest people in the country and has a reputation of brilliant finance expert. The members of his family control a number of large firms and companies in the sphere of processing of oil products, construction, finances and so on. There was a long-termed conflict between Heydar Babayev and Farhad Aliyev and media frequently covered the point. His responsibilities frequently intersected with those of Aliyev, after the latter took on responsibility for privatization.
Another source of problem for F. Aliyev was the well-known conflict with the Kamaleddin Heydarov, the head of the State Customs Committee, another most influential and richest oligarch in the republic. He is alleged to control banks, part of the construction sector, fisheries, and part of the mobile communications market
In autumn 2004, Aliyev launched an anti-monopoly campaign, naming customs impediments for imports as a main tool relied on by monopolies to preserve their business domains. The campaign divided members of parliament from the ruling Yeni Azerbaijan Party into two camps. One group called for parliamentary hearings, demanding that the head of government and Heydarov appear for questioning. The second group backed Kamaleddin Heydarov, affirming that there are no monopolies in Azerbaijan. The same divide was duplicated in the pro-government media. In early September, Aliyev made repeated statements that his life was under threat because of the economic reforms he advocated. On September 2, Aliyev said that he had appealed to law enforcement agencies to take measures to ensure his safety. Law enforcement agencies, however, refused to state whether or not they responded to Aliyev?s request [Eurasianet].
Ali Insanov
On the 20-th of October it was informed that the Minister of Healthcare Ali Insanov was dismissed fromhis position, which he had kept since 1993. He was presented as one more conspirator and supporter of the leader of Democratic Party Rasul Guliyev. In accordance with the official information of the Ministry of National Security, Ministry of Interior and General Prosecutor, he was one of the participants of “criminal plan for capture of power by force, formation of militarized groups, organization of mass disorder”.
The former Minister of Finances Fikret Yusifov testified that he had received big amounts of money from Ali Insanov for several times for the support of Rasul Guliyev. Ali Insanov was detained for the suspicion in financing coup-det?at.
During searches in Ali Insanov?s flat and country house were revealed: 1 million and 289,000 dollars, 884,000 EUR, 25 kilo of different golden and silver things, 17 valuable art and antiquary things; and 1 million and 217,000 dollars were found in the flat of the Head of Pharmacy Department of the Ministry of Healthcare and additional $9,000 were found in his office.
The investigation and operative measures for investigation of these and other crimes in the system of Ministry of Healthcare still continue. In accordance with the instruction of the president of the country on the 20-th of October, Ogtay Shiraliyev ? the director of Republic Diagnostic Center was appointed the Minister of Healthcare instead of the dismissed Ali Insanov.
Other Arrested and/or Detained Officials:
Throughout the week the people of Azerbaijan were discussing the numerous rumors and predictions who would be the next dismissed official. Among the expected officials were voiced the names of Ramil Usubov ? head of the Ministry of Internal Affairs, Safar Abiyev ? Minister of Defense and Ramiz Mehtiyev ? the chief of the Presidential Administration or ?Gray Cardinal? of Azerbaijan how he is often called.
However, there were dismissed and/or detained ?only? the following officials within a few days.
On the 19-th of October it was informed that the Minister of Social Protection Ali Nagiyev and the Minister of Education ? Misir Mardanov, as well the Secretary of the Presidential Administration Akif Muradverdiyev were removed from their positions, which were not officially confirmed by the end of the week despite of the broad media coverage.
On the 19-th of October the former Minister for Foreign Economic Development Nijat Guliyev was arrested for 15 days for not subordinating to police. Supposedly his arrest was connected with the attempt of return of the leader of Democratic party Rasul Guliyev.
On the 22-th of October the Head of non-budgetary medical service of the Ministry of Healthcare Vekil Abbasov was dismissed and detained.
On the 24-th of October the deputy chief of Nasimi region police station ? lieutenant-colonel Ilgar Ragimzadeh was dismissed from his post and detained. According to the unofficial sources Ragimzadeh was suspected of relations with ex-Minister of Health Ali Insanov, who is charged with coup d?etat attempt.
On the 24-th of October, the president of State Company Azerkimya Fikret Sadigov (on the right, photo 2) was removed from his position on the basis of the presidential decree. During the past days Sadigov?s name was listed among high-ranking officials subject to dismissal.
Comments of the Representatives of the Opposition Bloc
Rasul Guliyev: The leader of Democratic Party Rasul Guliyev denied allegations about the plot to overthrow the government of Ilham Aliyev. Talking to radio Liberty Azerbaijani Service from Simferopol shortly after a court in that city ordered his release, Guliyev described accusations brought against him. “We?ve been hearing these kinds of fairy tales since 1993 when Heydar Aliyev came back to power. I don?t know former economics minister Farhad Aliyev at all and I?ve never had any meeting with former finance minister Fikrat Yusifov”, said Guliyev. At the same time, he said that the information about his contacts with Ali Insanov was absurdity. He reminded that beginning from 1999 Insanov was the most active participant of the blackmailing campaign against Rasul Guliyev. “The events taking place in Azerbaijan are the results of fight of criminal groups with each other. The author of all intrigues is the head of administration of the president Ramiz Mehtiyev,” Rasul Guliyev believes.
Concerning corruption Guliyev condemned the president Ilham Aliyev for bribery. According to him, Ilham Aliyev received $12 million bribe while selling a lot of cotton in 90s years. With that sum he brought a private residence in one of most fashionable districts of London. Only the curtains in that mansion costs $1 million 880,000, Guliyev said.
Serdar Jalaloglu: The Secretary General of the Democratic Party Serdar Calaloglu also refuted the information about relations between the opposition and the arrested ministers. ?Until now the authorities of Azerbaijan stated that opposition is being financed from abroad. Now they say that state officials funded the opposition. It is lie and blackmail; show taking place now in Baku disgrace Azerbaijan before the world community”, he stated. ?If the authorities prove that we had received money from these people I will leave politics. These are conflicts in the power; they want to throw their wastes on us. The power is wallowed in corruption and million dollars can easily be found in the flat of any minister or Head of the executive power,? Jalaloglu said.
Ali Kerimli: The chairman of Popular Front Party Ali Kerimli called the official information on the fail of the attempt of coup “next show” by authorities. “In fact it was a fight of groupings and clans inside the power for spheres of influence and property,” Kerimli said. Those events should not be treated as fight against corruption as the authorities try to present the issue.
Fuad Mustafayev: The deputy chairman of the Popular Front Party absolutely denied that they have received any support from Farhad Aliyev or Fikret Yusifov. “This is idiocy. We have nothing to do with this case,” said Fuad Mustafayev, Mustafayev instead put the allegations down to an inner government struggle between Farhad Aliyev and other members of President Ilham Aliyev?s administration. “One group defeated another. Farhad Aliyev tried to gain an image as a reformer in the government. But he did nothing to really change the situation in the economy. What we have seen today is a culmination of struggle between oligarchs,” Mustafayev said.
