CA-NEWS (KZ) - The most notorious criminal case in Kazakhstan ended last Friday. Head of National Atomic company Kazatomprom Mukhtar Dzhakishev was sentenced to 14 years of imprisonment and his colleague Talgat Kystaubayev - to 5 yeas of imprisonment. 

Sergei Rasov, "Atomic verdict"

political observer, specially for CA-News, 15.03.2010

Kazatomgrom

Detention of Kazatomprom head Mukhtar Dzhakishev and his deputies was main piece of news in May 2009. His troubles began in April 2009, when former MP, member of Nur Otan party Tatyana Kvyatkovska said that Mukhstar Ablyazov (ex-chair of BTA Bank Board of Directors) and his friend Mukhtar Dzhakishev "robbed the country" at a press conference. 

"Ablyazov, Dzhakishev and their team robbed the country, robbed you and us... Uranium industry of is practically excluded from state control. As a result, Kazakhstan now controls only 23% of all uranium deposits in the country. Several uranium deposits (Akdala, South Inkai, and Harasan) were sold at a very low price. 64 thousand KZT is not the price for a uranium deposit," the former MP said. Then she turned to the Prosecutor General of Kazakhstan, Head of National Security Committee to conduct a thorough investigation. Kazatomprom in turn released a statement saying that upon its own initiative NSC, Agency for Combating Economic Crime and Corruption, Ministry of Finance, and General Procurator's Office examined company's activities in 2007 and no violation was detected. General Procurator' Office issued a statement on April 16 about examining Kazatomprom's activities. Mukhtar Dzhakishev was receiving medical treatment abroad at the same time and had a chance of not coming back, but being convinced that charges were false he returned home, where he was arrested on May 21. 

NSC version

Together with Mukhtar Dzhakishev his bodyguard Talgat Kistaubaev was arrested, as well as former vice president of Kazatomprom - Malhaz Tsotsoria, Askar Kasabekov and Dmitry Parfenov, former CEOs - Eshmurat Pirmatov (Stepnogorsk mining and chemical plant), Nurlan Musin (Ulbinsk metplant), Baurzhan Ibraev (Ken Dala Kz) and Adilbek Kelbuganov (Baiken U). It turned out that Dzhakishev and three vice-presidents were charged with theft committed on a large scale and the rest were kept at save houses under witness protection program. Former Minister of Industry and Trade Vladimir Shkolnik is appointed president of Kazatomprom. It is interesting that he was the one who headed Kazatomprom in 2002-2006, the time when uranium deposits of Kazakhstan had been sold at low prices.

On June 1 NSC held a press conference, at which NSC press-secretary Kenzhebulat Beknazarov said that Mukhtar Dzhakishev and Mukhtar Ablyazov created offshore companies overseas in 2004-2006 period, which received funds from uranium production sales. Several joint ventures were opened with help of foreign companies for this purpose.

"Information about illegal privatization of more than 60% of the state of uranium deposits by Dzhakishev and companies valued at billions of USD was confirmed. Dzhakishev's ‘black treasury' worth USD 3 million was also found," Beknazarov said. NSC hastened to assure journalists that the arrest of Kazatomprom head has no ‘political underpinning' and is not linked to his friendship with President's ex-son-in-law Rakhat Aliyev and Mukhtar Ablyazov. It was also announced that former vice-presidents of the company are now witnessing against Dzhakishev and are not charged. 

Advocacy

The plan was simple - to detain and then to imprison. However, many people intervened on behalf of Mukhstar Dzhakishev including leaders of opposition political parties, who suggested that repressions like those of 1937 began again. Then, representatives of domestic business wrote a letter to the President Nursultan Nazarbaev.

"Situation of Kazatomprom will inevitably affect international reputation of the country, as the company, headed for a long time and developed by Mukhtar Dzhakishev, is actively cooperating with the United States, Russia, China, Japan and other countries. This may lead to worsening of investment climate in the country and complicate Kazatomprom's situation," the appeal emphasized.

Wives and mothers of detainees of "uranium barons" noted that all contracts concluded by Kazatomprom are agreed with the Government, revised by the Ministry of Energy, and signed by Prime Minister and President. All deals take place at the interstate level. In addition, all international organizations verify legitimacy of operation.

Trade Union of Kazatomprom also stepped in for Dzhakishev. In a letter on behalf of 22 companies to Nursultan Nazarbaev there was a request to "take into account their opinion and objectively investigate the case." The signatories noted that over the past decade Kazatomprom managed to become a global brand, and it is Dzhakishev's name that is related to current success of the nuclear industry, which was almost bankrupt in the early 90s. "We do not believe that Dzhakishev is guilty. All of his activities the as head of Kazatomprom made public, all agreements and operations were made solely for the sake of the national interest," the workers wrote.

In turn, Nursultan Nazarbaev instructed Prosecutor General of Kazakhstan Kairat Mami "to ensure due process of law during investigation of criminal cases filed against Kazatomprom executives.

Uranium case results

All ten months of case investigation was completely veiled in secrecy, just as trial and sentencing. Record of Dzhakishev's examination was put on Internet, where he said that his imprisonment was beneficial for Russians and other uranium business players. His wife, Jamila Dzhakisheva, said that this is scandalous video "for official use" she received from head of National Security Committee. Press service of NSC was forced to refute this information. However, Nurusltan Nazarbaev removed NSC chair Amangeldy Shabdarbaev. Dzhakishev repeatedly made statements that the investigation is carried out with flagrant violation of law. For instance, despite the fact that he was taken to hospital several times when he fainted and there was a high risk of stroke, he never received adequate medical treatment. During his detention in jail he became disabled. All petitions of advocates to get acquainted with details of this complicated criminal case and to have trial by jury were dismissed. Meanwhile, new and new charges were filed against Dzhakishev such as bribery, and even forgery signatures.

Outcome:

First, judge Nurzhan Zholdasbekov sentenced ex-head of Kazatomprom to 14 years of imprisonment, just what prosecutors sought. Second, only Dzhakishev and his bodyguard were punished, while all the other top managers, assistants and partners "got off with nothing more than a fright" because were on time to "rat out." "Witnesses in handcuffs" in NSC safe houses were saying everything that prosecutors needed. Third, absurd allegations that Dzhakishev was selling uranium deposits disappeared.

By the way, after the arrest copies of contracts signed not by Dzhakishev appeared on the Internet. It was found out that the deals were approved by cabinet minister, premier and president. Fourth, he was sentenced for "black treasury" designed to bribe high-ranking individuals, establishment of illegal office in Vienna, and illegal payment to his bodyguard, which are not original charges. Mukhtar Dzhakishev did not admit fault on any charge. Defense will move for a new trial.

Kazatomprom is 100% state-owned company. Uranium mines are monitored and are under special control not only of the government, the president, but also of International Atomic Energy Agency and the country's "nuclear club." Uranium is not something one can easily buy at a store.

It is clear that strategic decisions Mukhtar Dzhakishev could not make on his own without approval of the government and President. On New Year's Eve, world media reported that allegedly Astana and Tehran are close to completion "of uranium deal," which was followed by official statement of Foreign Ministry representative Erzhan Ashykbaev, who said: "All operations regarding nuclear products in Kazakhstan, including our cooperation in peaceful uses of nuclear energy with other states, have IAEA guarantees." This is a very valuable recognition, because it proves charges of Mukhtar Dzhakishev's theft false.

Uranium riddle

There are many riddles in the case of Mukhtar Dzhakishev. For example, he was charged with illegal establishment of Kazatomprom office in Vienna. Absurd, given that IAEA headquarters are located there. Why trial and sentencing took place behind closed doors? What secret was about the trial? Why Dzhakishev's bodyguard was sentenced to 5 years of imprisonment? Because he did not betray his boss?  Why the court rejected Kazatomprom's suit to exact a payment from the defendants in the amount of USD 6.7 million for alleged damages? Because there was none? Who are the senior officials who received bribes from Dzhakishev, if there were any? Even if Dzhakishev is guilty of abuse of power from a legal point of view, they are covered with hundreds of millions of dollars of annual net profits received by the state. What did he receive 14 years of imprisonment for?  

Whatever it is about, but head of the state is obviously in charge of the sentence. Faith in justice is crushed. This was definitely revenge over Mukhtar Ablyazov and Rakhat Aliyev, who supported Dzhakishev, and it is clearly is an example for all business community of Kazakhstan.