The Caucasus region, particularly Armenia, Georgia, and Azerbaijan, has seen a series of significant corruption-related events in August 2024. These cases highlight ongoing issues with fraud, financial misconduct, and efforts to combat corruption in the region. Below is a summary of some of the most noteworthy incidents from the past month.
United Kingdom Forfeits Luxury Properties Linked to Former Azerbaijani Banker’s Wife
The UK has seized luxury properties belonging to Zamira Hajiyeva, the wife of a former Azerbaijani banker, Jahangir Hajiyev. Jahangir Hajiyev, who once headed the International Bank of Azerbaijan, was sentenced to 15 years in prison in 2016 for embezzlement and abuse of office. Zamira Hajiyeva was living a lavish lifestyle in the UK, including owning a luxurious Knightsbridge property and spending millions at Harrods.
The UK’s National Crime Agency (NCA) launched an investigation under the “Unexplained Wealth Order” legislation, focusing on how she acquired the properties with funds that appeared to be disproportionate to her husband’s official income. In August 2024, a court ruling resulted in the forfeiture of these properties, estimated to be worth millions. This case underscores the global reach of corruption and the international efforts to combat money laundering and asset concealment.
Trial of Ramin Isayev, Former CEO of SOCAR AQS, Resumes
The trial of Ramin Isayev, also known as Ramin Ali Hakan, commenced on September 9th in the Baku Court of Serious Crimes. Case no. 1(101) 2048/2024 is being presided over by Judge Faik Ganiyev.
The trial of Isayev, the former CEO of SOCAR AQS, follows a year-long investigation, during which he was arrested and investigated. The initial suspicions of fraud and embezzlement, in the amount of 16 million manats, have since increased more than threefold to the staggering amount of 54 million manats. According to the prosecution, Isayev’s fraudulent activities occurred over several years and consisted of multiple events. He used the proceeds of his embezzlement to finance a luxurious lifestyle that included real estate, cars and indulgencies such as luxury hotels, expensive flights, and live shows.
Azerbaijan’s Commission on Combating Corruption Holds Meeting
In response to ongoing corruption challenges, Azerbaijan’s Commission on Combating Corruption convened a meeting in August to discuss the country’s anti-corruption measures and strategies. The commission addressed the implementation of various reforms and initiatives aimed at curbing corruption within the government and public sectors.
During the meeting, the commission emphasized the importance of transparency and accountability in public administration and discussed ways to enhance legal frameworks and enforcement mechanisms to prevent corruption. The session also reviewed the progress of ongoing investigations and the implementation of national anti-corruption policies. This meeting demonstrates Azerbaijan’s ongoing efforts to tackle corruption and improve governance, although challenges remain in achieving tangible results.
Former Armenian Defense Minister Fined for Corruption
Suren Papikyan, the former Defense Minister of Armenia, has been fined 100,000 drams for corruption related to his tenure as Chairman of the Civil Contract party.
The fine was imposed due to his failure to comply with constitutional laws governing the cashless payment of party expenses. According to the Armenian Corruption Prevention Commission, during 2022, Papikyan oversaw transactions involving a significant sum of 11,387 thousand drams, withdrawn from the party account via ATMs.
The commission’s statement revealed that there was no documentation explaining the use of these funds. Papikyan did not attend the commission’s session nor provide any details about the expenditures in question.
Conclusion
The recent corruption cases and anti-corruption efforts in the Caucasus highlight both the region’s struggles and its commitment to addressing these challenges. From international asset forfeitures to national anti-corruption commissions, these events show that while progress is being made, corruption remains deeply entrenched in the political and economic systems of Armenia, Georgia, and Azerbaijan. Sustained efforts and comprehensive reforms will be crucial for these nations to achieve greater transparency and integrity in governance.