May 31, 2013

WILL AZERBAIJANS FIRST LADY GO TO PRISON?

L to R: Inside a prison; Azerbaijan First Lady Mehriban Aliyeva

By Caucasus Study Group

An investigation by the Caucasus Study Group reveals evidence of a number of serious criminal investigations against Mehriban Aliyeva, the First Lady of Azerbaijan. Until now, the allegations and investigations have been withheld from the public. Mrs. Aliyeva is the most prominent and popularpublic gure in Azerbaijan. She also comes from the most powerful family in the country. According to well-placed condential sources, Mrs. Aliyeva is the subject of criminal investigations by

foreign governments (Switzerland and Russia) and non-governmental organizations (the International Criminal Court [ICC] and World Bank). One ofcial from the EU told us that Mrs. Aliyeva and her husband began to come under intense scrutiny within the last decade as Azerbaijans political and economic power grew. Russia, European nations and the United States had placed signicant nancial and political investments in Azerbaijans oil sector. Concern about the Azerbaijani governments behavior

grew, but close scrutiny remained nonexistent. As one NGO staffer told us, Everything changed when the West became invested in Azerbaijan. The old system of corruption and graft just wont work anymore, but change within Azerbaijan is nearly nonexistent.

CAUCASUS STUDY GROUP May 31, 2013

The allegations are as follows: Switzerland. According to our sources, Switzerlands Federal Intelligence Service conducted a criminal investigation of fraudulent nancial activity by Mrs. Aliyeva and her family. According to bank records obtained by our investigators, Mrs. Aliyeva holds over $85 million U.S. dollars at Pictet & Cie across a number of different accounts under false names. Repeated phone calls to Pictet & Cie were not returned. Files we reviewed showed extensive documentation of phone calls, meetings and emails within the Swiss government. These conversations revealed broad disagreement over what to do with the results of the investigation. Russia. Russian authorities conducted an investigation into allegations that President Aliyev and First Lady Aliyeva ordered shifts in Azerbaijan drug control resources away from key border entry points with [the] goal of allowing smugglers to cross the border without incident, in exchange for payoffs. One top ofcial we talked to at the Russian Federal Drug Control Service denied the existence of any investigations of the Aliyevs. However, another ofcial at the Federal Security Service conrmed the investigation but would not release any details. One investigators note in a report read, . . . evidence of personal cocaine use by Mehriban Aliyeva.

Additionally, investigators learned that Mrs. Aliyeva is the target of inquiries by ICC and World Bank: ICC. Court investigators have looked into complaints by human rights organizations. One ofcial afliated with the ICC conrmed that an investigation into Mrs. Aliyeva had taken place but no further action had occurred. Translated audio recordings of interviews with victims revealed allegations that the Azerbaijan Ministry of National Security detained and tortured 12 activists who had publicly opposed Mrs. Aliyeva in 2005, and that electric shock and beatings were administered. World Bank. Bank ofcials conducted an inquiry in 2012 looking into the embezzlement of public treasury funds and SOCAR state oil funds. Mrs. Aliyevas daughters Leyla and Arzu were also seen as co-conspirators, using corporate shell organizations in Panama to funnel public funds to family accounts. It is unclear whether First Lady Aliyeva will be charged and prosecuted as a result of the investigations discussed in this report. CSG will continue to report on this important subject as we discover new facts.

L to R: Baggies of cocaine; protester recovering after beating in Baku

The$Caucasus$Study$Group$(CSG)$is$a$collaboration$of$student$researchers$and$journalists$ across$many$North$American$universities$from$a$broad$range$of$academic$disciplines.$Our$mission$ is$to$study$and$publish$important$issues$affecting$Armenia,$Azerbaijan,$Georgia,$Russia,$and$ Turkey.$$Information$presented$in$this$report$was$veriGied$by$thirdHparty$reporters,$conGidential$ sources,$and$documents$obtained$by$CSG.

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