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Kazakhs: Let's talk about succession
By Sergei Blagov

MOSCOW - The eldest daughter of Kazakh President Nursultan Nazarbayev has told the Russian media that her father's opponents "could relax" for the next decade. However, she has become increasingly high-profile in terms of Kazakh domestic politics, setting off rumors that Nazarbayev is mulling a dynastic transition of power. And against the backdrop of a graft probe in the United States, dynastic succession would provide some extra safety for Nazarbayev and members of his clan.

Notably, Dariga Nazarbaeva, the woman in question, has taken over a new political movement called Asar, which in Kazakh means "all together". In an address in the Aktyubinsk region of Kazakhstan on September 12, Dariga came up with a clearly populist statement, arguing that Asar would focus on helping "he most needy and poor people".

Although Asar is now a mere "public association", Dariga indicated that the movement should become a political party. The movement's leadership, which includes her father-in-law Mukhtar Aliyev, is working on developing a party program, Dariga was quoted as saying on Kazakh state television on September 12. Presumably, Asar is due to become the main pro-president political movement.

Dariga also heads Khabar, a predominant media group. Her new role as the head of Asar is seen as a preparation for the upcoming parliamentary elections in 2004. It has been speculated that Dariga could eventually be appointed as senate chairman, which under the Kazakh constitution is the first in the succession line should Nazarbayev resign, die or otherwise be incapable of carrying out his duties as head of state.

However, Dariga has dismissed reports that she could run in the 2006 presidential election. "Nursultan Nazarbayev's rivals can relax for the next 10 years," she was quoted as saying by the Russian daily Nezavisimaya Gazeta on September 12. However, there is also talk of Dariga becoming a presidential candidate in 2013.

Dariga, a mother of three, became a grandmother last month. She heads Kazakhstan's official journalists' union. She is also an amateur opera singer, and she recently performed at Moscow's famous Bolshoi Theater.

Rumors of dynastic succession from Nursultan to Dariga have long circulated in Kazakhstan. However, in 2001, Dariga's husband, Rakhat Aliyev, allegedly sought too much economic and political power for himself and incurred the president's displeasure. Subsequently, Aliyev was sent to a sort of honorary exile, and he now serves as Kazakhstan's ambassador to Austria.

However, in recent months talk of succession has gained new momentum, being somewhat fueled by an ongoing criminal investigation in New York into alleged kickbacks to top Kazakh officials as part of oil deals between the government and Western oil majors.

In June, a former US oil executive, J Bryan Williams, pleaded guilty to charges of tax evasion and conspiracy to defraud the US government in connection with a deal to develop Kazakhstan's energy sector. Williams, a lawyer, aided Mobil's oil operations in Russia and other parts of the former Soviet Union, including Kazakhstan. The guilty plea of Williams is helping to refocus attention on a bribery case involving unnamed Kazakh officials and merchant banker James Giffen.

Williams pleaded guilty June 12 in a US district court in New York to hiding more than US$7 million in taxable income, including a $2 million payment made in 1996 by "people, organizations or governments" with whom he was doing business on behalf of what was at the time known as Mobil Oil Corp. Federal prosecutors estimated that Williams failed to pay more than $3.5 million in taxes, according to a transcript of the June 12 court proceedings.

According to court documents, Williams opened two bank accounts in 1993 in the name of a corporation, Alqi Holdings Ltd. Between 1993 and 2000, more than $7 million was deposited in the two accounts, which earned $800,000 in income, court documents show.

On September 18, Williams was sentenced to 46 months in prison for evading taxes on $7 million in secret payments, including a kickback prosecutors said he got for helping Mobil buy a share of a Kazakhstan oilfield. Mobil, which was acquired by Exxon in 1999 to form ExxonMobil, paid $1.05 billion in 1996 for a stake in the Tengiz field.

Williams, who resigned from the company now known as ExxonMobil in 1999, was indicted on April 3, a few days after prosecutors indicted Giffen, a merchant banker who brokered the Tengiz oil deals for Kazakhstan in 1996.

Giffen's trial at the US Federal Court, Southern District of New York, is tentatively scheduled to begin in January. Giffen has maintained his innocence since his arrest on March 30.

Giffen, who is chairman of the New York-based Mercator Corp, was arraigned on March 31 on two counts of violating the Foreign Corrupt Practices Act. According to the indictment, Giffen allegedly funneled $78 million in fees from a deal between Mobil Oil Corp and the Kazakh government to two bank accounts controlled by top Kazakh officials. The indictment does not name the Kazakh leaders.

The Giffen indictment is part of a wider US corruption probe that is examining the dealings of oil conglomerates in Kazakhstan. Giffen reportedly served as an adviser to Nazarbayev, and had close ties with Kazakh Oil Minister Nurlan Balgymbayev.

Therefore, Nazarbayev is now understood to be seeking to position his daughter as his successor, allowing him the option of quickly departing office if developments in the graft probe made it expedient to do so. Dynastic succession would also secure life-long immunity from prosecution for Nazarbayev.

In the Nezavisimaya Gazeta article, Dariga played down the corruption scandal, known as Kazakhgate, denying that any wrongdoing had occurred. At the same time, she made it clear that the Asar movement would combat the main opposition movement, the Democratic Choice of Kazakhstan (DCK).

The DCK has been keen to use "Kazakhgate" to lash out at Nazarbayev and his supporters. Subsequently, several prominent critics of the president, including DCK leaders and opposition journalist Sergei Duvanov, have been jailed on what their supporters claim are politically motivated charges.

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Oct 3, 2003



 

 

 
   
         
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