| Desperately seeking Turkmenbashi's slush fund... |
 Deutsche Bank, the German bank, was last night under pressure over allegations it was holding billions of dollars in accounts formerly controlled by Saparmurat Niyazov, the autocratic president of Turkmenistan who died suddenly on Thursday.
The Financial Times daily reports that it obtains a document that reads that the German bank is holding an account for a $1.68bn Turkmenistan government contract, signed in 2001, to export gas to Ukraine. The account is managed by the bank on behalf of the Turkmenistan central bank, according to the document. Much of the countryÂ’s central bank funds were under the personal control of Niyazov, according to finance experts.| A quick spin thru my email shows no spam yet from Turkmenbashi's widow, orphans, or former vice-chancellors... |
In a report issued in June, the European Bank for Reconstruction and Development warned that funds in the Turkmen central bank were under the “discretionary control of the president without appropriate regulation and transparency”. Niyazov maintained a personality cult that impoverished his country and involved oppression of opposition groups and alleged human rights abuses. His funeral is due to be held tomorrow.
Leaders of a Vienna-based Turkmen exiled opposition group wrote yesterday to Angela Merkel, the German chancellor, demanding an “official investigation” into Deutsche Bank’s role. The letter from the Republican party of Turkmenistan, obtained by the Financial Times, cites an estimate of $3bn being held by the Deutsche Bank and other foreign banks. It said there “are further questions about money-laundering” [and] “violations of European Union banking standards on transparency”. Deutsche Bank in Frankfurt declined to comment.| "Ve know nossink. Tell zem, Hogan!" |
Speculation over Deutsche Bank’s alleged involvement with Niyazov has been circulating for months in Turkmenistan and other central Asian countries, according to oil industry workers in the region. Global Witness, a London-based non-governmental group that reported this year on Deutsche Bank’s involvement in Turkmenistan, last night said: “Deutsche Bank should come clear on the Niyazov funds it holds, and if necessary freeze the accounts to ensure the money is not stolen.” Alexander Zhadan, Niyazov’s private secretary and purse-keeper to the deceased president since communist times, controlled his financial affairs. Mr Zhadan has not been seen since the day before Niyazov died, according to unconfirmed reports.| Not to worry. CSI: Ashgabat is on the case! |
Andrei Grozin, an expert on central Asia in Moscow’s Institute of the CIS, said it was “naive” to think European banks would return the funds to Turkmenistan.| After he stopped laughing, that is. |
He added that Russian officials scheduled to attend Niyazov’s funeral, including Mikhail Fradkov, the prime minister, and Alexei Miller, the head of Gazprom, the natural gas monopoly, were expected to remain in the republic for talks about gas supplies and revenues. Arkady Dubnov, an expert on central Asia, and commentator for Vremya Novostei, a Russian daily newspaper, said: “None of Turkmenistan’s export revenues go through the budget. It is most important for the new government [when it is established] to access the hard currency accounts.” Kurbanguli Berdmukhamedov, Turkmenistan’s interim president, said the date of an election to choose a successor to Niyazov would be announced on Tuesday. In a televised statement, Mr Berdmukhamedov said the People’s Council would name candidates for the presidency. Russian analysts said the results of the election would be pre-determined. Turkmenistan’s Majlis, or parliament, appointed Niyazov president for life in 1999. |