Mukhtar Ablyazov
Encyclopedia
Mukhtar Ablyazov is a Kazakh businessman, former banker and co-founder of the Democratic Choice of Kazakhstan
(DCK), an opposition political movement that aimed to challenge the current president of Kazakhstan
, Nursultan Nazarbayev
. 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; and now facing a jail threat for failing to comply with a High Court order to reveal his true assets..
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 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.
(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 and Amnesty International. The trial failed to meet international fair trial standards.
It is alleged that he was subject to torture, beatings and other ill-treatment whilst he was in prison. After pressure from the international community, including Amnesty International and the European Parliament he was released in May 2003 after only serving ten months, on the condition that he renounce politics.
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.
In 2009, Kazakhstan's Sovereign Wealth Fund, Samruk-Kazyna
, injected significant funds into BTA in an effort to keep the bank solvent, effectively becoming its majority shareholder. Shortly before Samruk-Kazyna
's intervention Ablyazov fled Kazakhstan to London.
BTA Bank launched legal proceedings against Ablyazov in the UK High Court
shortly after his arrival in London as a part of its restructuring agreement with creditors to recover assets allegedly misappropriated by Ablyazov during his tenure at BTA Bank. Since August 2009 the High Court in London has found sufficient cause to freeze Ablyazov’s assets and confiscate his passport.
Ablyazov is the subject of seven legal claims in the English High Court totalling $3.7 billion (£2.26 billion). In October 2010 Ablyazov lost a legal fight to prevent his assets from being subject to a receivership order. The ruling came after Justice Teare stated Ablyazov "cannot be trusted" not to dissipate assets prior to trial.
Ablyazov's defence papers argue that the takeover of BTA Bank by Samruk-Kazyna in February 2009 was "the culmination of the campaign by the President Nazarbayev and his allies to wrest ownership and control of [BTA] from [Ablyazov]". However, a High Court
judge and a panel of Court of Appeal judges have raised questions over Ablyazov's honesty. In October 2010 Lord Justice Maurice Kay stated in a Court of Appeal ruling that he did not find Justice Teare's concerns over Ablyazov's honesty "in the least surprising."
In February 2011 Ablyazov lost a legal fight to have BTA Bank's claims thrown out after a High Court judge ruled he cannot use allegations of a presidential conspiracy to avoid claims he embezzled as much as $4 billion. The February judgement stated: “The claims are those of the bank. They are not the claims of the government of Kazakhstan, which is said to have brought about the nationalization in breach of international law and human rights”.
and fraud
in March 2009, issuing a warrant for his arrest. Following the Kazakh arrest warrant Ablyazov fled to the UK
According to one source, the Kazakh government has warned it will punish British firms by awarding lucrative contracts to China if Ablyazov is granted asylum.
Democratic Choice of Kazakhstan
Democratic Choice of Kazakhstan was a political party in Kazakhstan. It was disbanded in February 2005 before the presidential elections.-Origin:...
(DCK), an opposition political movement that aimed to challenge the current president of Kazakhstan
Kazakhstan
Kazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
, Nursultan Nazarbayev
Nursultan Nazarbayev
Nursultan Abishuly Nazarbayev has served as the President of Kazakhstan since the nation received its independence in 1991, after the fall of the Soviet Union...
. He is currently the subject of a legal investigation in the UK High Court
High Court
The term High Court usually refers to the superior court of a country or state. In some countries, it is the highest court . In others, it is positioned lower in the hierarchy of courts The term High Court usually refers to the superior court (or supreme court) of a country or state. In some...
after he allegedly embezzled billions of dollars out of BTA Bank between 2005 and 2009; and now facing a jail threat for failing to comply with a High Court order to reveal his true assets..
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 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.
Political career
In November 2001, Ablyazov co-founded the Democratic Choice of KazakhstanDemocratic Choice of Kazakhstan
Democratic Choice of Kazakhstan was a political party in Kazakhstan. It was disbanded in February 2005 before the presidential elections.-Origin:...
(DCK), an opposition political movement challenging the current president, Nursultan Nazarbayev
Nursultan Nazarbayev
Nursultan Abishuly Nazarbayev has served as the President of Kazakhstan since the nation received its independence in 1991, after the fall of the Soviet Union...
.
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 and Amnesty International. The trial failed to meet international fair trial standards.
It is alleged that he was subject to torture, beatings and other ill-treatment whilst he was in prison. After pressure from the international community, including Amnesty International and the European Parliament he was released in May 2003 after only serving ten months, on the condition that he renounce politics.
Ablyazov moved to Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
in 2003 to rebuild his business ties and in 2005 became the Chairman of the Board of Directors of BTA Bank.
BTA Bank and fraud charges
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 which led to latent credit risks. Between 2003 and 2007 BTA's outstanding loans grew by 1,100%.In 2009, Kazakhstan's Sovereign Wealth Fund, Samruk-Kazyna
Samruk-Kazyna
Samruk-Kazyna , officially known as the National Welfare Fund "Samruk-Kazyna", is a joint stock company in Kazakhstan which owns, either in whole or in part, many important companies in the country, including the national rail and postal service, the state oil and gas company KazMunayGas, the state...
, injected significant funds into BTA in an effort to keep the bank solvent, effectively becoming its majority shareholder. Shortly before Samruk-Kazyna
Samruk-Kazyna
Samruk-Kazyna , officially known as the National Welfare Fund "Samruk-Kazyna", is a joint stock company in Kazakhstan which owns, either in whole or in part, many important companies in the country, including the national rail and postal service, the state oil and gas company KazMunayGas, the state...
's intervention Ablyazov fled Kazakhstan to London.
BTA Bank launched legal proceedings against Ablyazov in the UK High Court
High Court
The term High Court usually refers to the superior court of a country or state. In some countries, it is the highest court . In others, it is positioned lower in the hierarchy of courts The term High Court usually refers to the superior court (or supreme court) of a country or state. In some...
shortly after his arrival in London as a part of its restructuring agreement with creditors to recover assets allegedly misappropriated by Ablyazov during his tenure at BTA Bank. Since August 2009 the High Court in London has found sufficient cause to freeze Ablyazov’s assets and confiscate his passport.
Ablyazov is the subject of seven legal claims in the English High Court totalling $3.7 billion (£2.26 billion). In October 2010 Ablyazov lost a legal fight to prevent his assets from being subject to a receivership order. The ruling came after Justice Teare stated Ablyazov "cannot be trusted" not to dissipate assets prior to trial.
Ablyazov's defence papers argue that the takeover of BTA Bank by Samruk-Kazyna in February 2009 was "the culmination of the campaign by the President Nazarbayev and his allies to wrest ownership and control of [BTA] from [Ablyazov]". However, a High Court
High Court
The term High Court usually refers to the superior court of a country or state. In some countries, it is the highest court . In others, it is positioned lower in the hierarchy of courts The term High Court usually refers to the superior court (or supreme court) of a country or state. In some...
judge and a panel of Court of Appeal judges have raised questions over Ablyazov's honesty. In October 2010 Lord Justice Maurice Kay stated in a Court of Appeal ruling that he did not find Justice Teare's concerns over Ablyazov's honesty "in the least surprising."
In February 2011 Ablyazov lost a legal fight to have BTA Bank's claims thrown out after a High Court judge ruled he cannot use allegations of a presidential conspiracy to avoid claims he embezzled as much as $4 billion. The February judgement stated: “The claims are those of the bank. They are not the claims of the government of Kazakhstan, which is said to have brought about the nationalization in breach of international law and human rights”.
Arrest warrant in Kazakhstan
Kazakh prosecutors accused Ablyazov of money launderingMoney laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
and fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
in March 2009, issuing a warrant for his arrest. Following the Kazakh arrest warrant Ablyazov fled to the UK
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.Application for UK asylum
Ablyazov is currently living in luxury in London http://www.thisislondon.co.uk/standard/article-23940649-does-this-kazakh-banker-know-the-secret-of-rbss-missing-billions.do and was granted asylum in the UK in July 2011. However, Kazakhstan’s Prosecutor General’s Office have requested his extradition from the UK. The British government has reportedly not yet replied to the extradition request.According to one source, the Kazakh government has warned it will punish British firms by awarding lucrative contracts to China if Ablyazov is granted asylum.