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WASHINGTON, DC – In a speech delivered on the House floor earlier today, Congressional Armenian Caucus Co-Chairman Frank Pallone (D-NJ) called the attention of his House colleagues to rampant corruption and political manipulations of the rule of law by Azerbaijan’s Aliyev regime, reported the Armenian National Committee of America (ANCA).
In his remarks, Rep. Pallone described the recent changes in Azerbaijan’s law, placing President Geidar Aliyev’s son and hand picked successor Ilham in direct line for presidential succession in Azerbaijan. “It is clear that the Aliyev family is on its way to establishing the first dynastic regime in the Former Soviet Union,” explained the Congressman. He went on to call attention to a case recently unsealed in the state of New York which unearthed evidence that Geidar and Ilham Aliyev “stole over $100 million in a form of vouchers that were designed to give the purchaser disproportionate influence over the privatization process [of the oil industry in Azerbaijan].
In light of these facts, Rep. Pallone took exception to a recent Bush Administration letter congratulating the appointment of Ilham Aliyev to the post of Prime Minister in Azerbaijan. “This is clearly not in the interest of democracy that the President [Bush] has touted lately in regards to the Middle East. How can this Administration have separate distinctions about what is democracy and what is not? It seems increasingly clear what the answer is: Those countries that have significant resources that are sent to Western markets are allowed to be less democratic than those that don’t.”
The consolidation of a hereditary monarchy has been the subject of sharp criticism in the international press:
* The Washington Post, in an August 25, 2003 editorial titled “An Unending Succession,” described Azerbaijan as “an authoritarian regime preparing to become the first hereditary fiefdom among post-Soviet republics.”
* The Economist, in an August 9, 2003 editorial titled “Kim Jong-Ilham,” noted that, “in a world where blatant nepotism is a disappearing skill, Heydar Aliyev, now 80, is keeping old traditions alive.”
* The New York Times, in an August 25, 2003 editorial, “Dynastic Regimes,” noted that, “such successions promise short-term continuity, but the damage they do to democratic institutions creates long-term instability.”
Rep. Pallone’s complete statement on the House floor is provided below.
The Systematic Corruption of the Aliyev Dynasty
Mr. Speaker, I come to the floor this evening to address what I consider one of the largest potential factors for destabilization in the entire Caucus’ region: the systematic corruption of the Aliyev Dynasty currently ruling Azerbaijan. I have highlighted the problems with President Heydar Aliyev for years now, but his health has deteriorated recently, and that has put the future of Azerbaijan, and the entire Caucus region in doubt.
In July of this year, President Aliyev suffered what has been described by the Cleveland Medical center where he currently resides, as “congestive heart failure”. Last month, his son Ilham was appointed as Prime Minister. This would seem only appropriate at first until you consider that a recent referendum forced through the electorate changed the line of succession from Speaker of the Parliament to Prime Minister. This was widely criticized at the time by domestic Azerbaijani opposition groups and the international community as a clear way for President Aliyev to set up a dynastic regime. Unfortunately, as President Aliyev has become incapacitated during his treatment, the predictions have come true. His son Ilham is now in direct line to take over the presidency from his father.
The partnership of the father and son is not only limited to the fact that Azerbaijan will be the first monarchy established in the Former Soviet Union. A “Financial Times” article on September 13, 2003 clearly shows that power is not the only object of the Aliyev’s desire. Both were implicated in a court case that was unsealed in New York this week. The actual case has been filed against a Swiss banker by the name of Hans Bodmer. In the indictment, he allegedly conspired to facilitate the participation of foreign citizens in Azerbaijan’s privatization process of the state-owned oil company – often referred to by its name – SOCAR, through improper payments made to Azerbaijani officials.
This would most likely not have come to light were it not for the fact that the Heydar and Ilham Aliyev had never intended to privatize the oil company in the first place. Instead, they stole over $100 million in a form of vouchers that were designed to give the purchaser disproportionate influence over the privatization process. All of this was alleged to have happened while Ilham Aliyev was the head of SOCAR, a position that his father bestowed on him to apparently prepare him for his job as heir-apparent of the country of Azerbaijan.
Mr. Speaker, this is a clear example of this administration’s misguided policies when it comes to countries that are oil-rich. The day that Ilham ascended to his post and forced the former Prime Minister from office, President Bush sent a letter of congratulations to him. This is clearly not in the interest of Democracy that the President has touted lately in regards to the Middle East. How can this administration have separate distinctions about what is democracy and what is not? It seems increasingly clear what the answer is: Those countries that have significant resources that are sent to Western markets are allowed to be less democratic than those that don’t.
Mr. Speaker, I am also very concerned about what the Aliyev regime plans to do about the resolution of the Nagorno Karabakh conflict. Heydar Aliyev was tantalizingly close to reaching a settlement with Armenian President Robert Kocharian in Key West in 2001, but those negotiations soon fell apart when Aliyev returned home. Since then, Aliyev and Kocharian have met many times, but resulted in no progress. The Organization for Co-Operation and Security in Europe’s Minsk Group, who is charged with moving the two parties towards peaceful settlement, has become increasingly frustrated with the process. Ilham has recently taken a much harder stance on the Karabakh issue than did his father, and this is of great concern to me.
Mr. Speaker, it is clear that the Aliyev family is on its way to establishing the first dynastic regime in the Former Soviet Union. Not only is this a concern for the entire Caucus region, but also other leaders of the Former Soviet Union that must be watching the United States’ reaction to this. The message that is sent is not positive. How can we be supportive of this? Families in the Middle East that have controlled vast oil revenues have scarred the last century with wars and oppressive regimes. Members of the Bush Administration know this better than anyone. Secretary of State Rumsfeld visited Iraq with a delegation in 1983. They met with Saddam Hussein and decided that the stability of his regime and oil revenue was more important than his lust for power, whatever the cost. We are now paying for that tragic mistake with the lives of our nation’s sons and daughters.
It is time for the Administration to change its tune on the corrupt and oppressive Aliyev Regime. Though stability may be the temporary result of the President’s support, the end result could destabilize the entire region.