What Is Background to Rasim Mammadov Case?

Baku/03.02.21/Turan: The State Security Service (SSS) confirmed information about the arrest of the chairman of the Supervisory Board of Baku Steel Company LLC Rasim Mammadov.

The State Security Service said in the course of the investigation of the company's activities, solid suspicions arose that Mammadov had embezzled 13,200,000 manats from the company's account.

In addition, the waste of products in the amount of 42 million manats was revealed, as a result of which damage was caused to the Baku Steel Company.

In addition, Mammadov is charged with fraudulent actions, in particular, deception and abuse of trust of individuals and the seizure of large sums of money.

A criminal case was initiated against Mammadov under Articles 308.2 (abuse of office), 179.4 (embezzlement or misappropriation with causing significant damage) and 178.3.2 (fraud with causing large damage) of the Criminal Code.

Commenting on this case to Turan, legal expert Namizad Safarov said these charges, according to the Criminal Procedure Code, fall within the competence of the prosecutor's office, not the State Security Service.

Therefore, the investigation by the State Security Service is illegal.

Possible reasons for this may be affecting the interests of the political elite. Thus, the initiator of the investigation of Mammadov's crimes, according to media reports, is the son and son-in-law of the former head of the presidential administration, Ramiz Mehdiyev.

 According to the same sources, Mehdiyev himself was the ultimate beneficiary of the company.

“Most likely, after a while this case will be let down on the brakes and Mammadov will be released after they get what they want from him,” Safarov suggested.

Interestingly, the company called Baku Steel Company was founded by the foreign businessman of Iranian origin, Paolo Parviz, in the 1990s. The company was registered offshore on the Isle of Man. He later sold the business.

Currently, there are two companies under the name Baku Steel Company - registered on the Isle of Man and LLC of the same name in Azerbaijan.

The founders of the company in Azerbaijan are three legal entities, however, it is impossible to establish the ultimate beneficiaries - since 2012, Azerbaijani legislation prohibits the disclosure of information about the founders of firms, if they do not declare it themselves.

Apparently, this is the same company, and the creation of the LLC was intended to confuse the scheme for withdrawing funds to offshore companies.

All these years Mammadov has periodically stated to the media that he is the owner of the Baku Steel Company, that is, the steel plant, refuting reports that the company belongs to Ramiz Mehdiyev or someone else from high-ranking officials.-06B08/05-