THE MOST WEALTHY WOMEN OF AZERBAİJAN

For several years apartment No 3 at 7 Samad Vurgun street in Baku remains a financial center of the capital. The apartment"s owners have the right to think that they control financial system of the country, because they own one fourth of the banks, except for the International Bank, and the same share of the insurance market - total of about 2 billion AZN. These oligarchs are Mehriban Aliyeva and her two daughters Leyla and Arzu, because according to the web site of the Central Election Commission www.msc.gov.az they are registered in this apartment.

ALIYEVS" BANKS

The growing investment opportunities of the Aliyev family"s women may help to turn Baku into a regional financial center. The idea does not sound real, as Baku as neither developed infrastructure, unlike Moscow, Almaty and even Kiev, nor an investment regime. The scale of the country"s economy is also not attractive for the investors. However, business activity of president"s wife and her two daughters may ensure them the first places in questionable ratings and the lists of the richest women in the world.
ADOR company, which owns 30% shares of Pasha Bank, is registered in the apartment. The official web site of the bank claims that the other shareholders are Pasha Holding with 60% shares and Arif Pashayev, Mehriban Aliyeva"s father, with 10%. The bank is rather successful, though it was opened only three years ago.
Two years ago ADOR became the main shareholder of Expressbank (former Azernagliyyatbank) with 42% shares. Now this bank is among top ten banks with the biggest authorized fund.
In December 2004 Xalg Bank was founded by three little known physical persons. Soon after that Euro Standard and Ideal BusinessCo companies were listed as the shareholders on a parity basis. Architect Rasim Babakishiyev is an official owner of these companies as well as AzExCo. However, the banking circles consider the female part of president"s family a real owner. Fitch rating agency calls Leyla Aliyeva a beneficiary of Xalg Bank. A small office of Babakishiyev"s companies at 24 Veli Mammadov street can hardly be associated with the owner of the fourth biggest bank of the country.
Euro Standard is one of the main shareholders of Bank Eurasia with 37.5% as well as Pasha Bank, which obtained the bank license at the end of 2007. Bank Eurasia is considered to be owned by Araz Agalarov, President"s relative.
Mass media have already mentioned privatization of Azal Bank, which ended in the beginning of 2008. One of the main shareholders of the bank, which has been renamed into Bank Silk Way, is President"s youngest daughter Arzu Aliyeva with about 36% shares.
Privatization of a bigger Capital Bank completed in 2008. There were less violations during the privatization, now its owner is Pasha Holding, which holds over 99% shares.
The attempts to find out information about names of founders of ADOR, Pasha Holding and other companies lobbying by the family in the Taxes Ministry have failed. However, according to the Tax Code, the Ministry is obliged to provide such information.
Meanwhile, apartment at Samad Vurgun street manages Capital Bank with the capital of 682 million AZN, Xalg Bank with 480 million AZN, Pasha Bank with 340 million AZN, Express Bank with 76 million AZN, Bank Eurasia and Bank Silk Way with 48 million AZN.
In addition, three insurance companies Xalg Sigorta, Pasha Sigorta and Azal Sigorta are among top ten insurers of the local market and the first two ones have a capital of over 21 and 20 million AZN, respectively.
Total capital of financial organizations, which bear relation to the apartment at 7 Samad Vurgun street is over 440 million AZN ($550 million). And this sum constantly grows.

IS ALIYEV FAMILY"S BUSINESS LEGAL?

This spring the Washing Post wrote that immovable property worth about $75 million was registered to the name of Aliyev"s children in Dubai.
In May 2010 Ali Hasanov, deputy chief of the presidential administration, said that Ilham Aliyev was involved in business in Moscow and Istanbul before his involvement in politics. He added that this business is managed by the president"s close relatives and brings profit.
The society has another opinion. Some opposition parties accuse the Aliyev family of collecting money that they have extorted from the Ministries of Taxes, Economic Development, Property, Internal Affairs, Education, Health and etc. The Aliyev family also derives profit from the oil business and it has monopolized several economic areas.
By the way, neither Ilham Aliyev, nor his wife, Milli Mejlis Deputy, have ever presented information about their incomes and capital to the election commissions. According to the Electoral Code, the candidates for presidency and parliament must present information about their property.
The lawyer Erkin Gadirli said there are no bans on carrying out the entrepreneurial activities by the close relatives of president. It is also difficult to prove and prevent the conflict of interests. However, political culture obliges president to declare the incomes and property.
"Political will and the law enforcement agencies prevent use of powers by officials for their own interests. It is necessary to establish public, parliamentary and independent judicial control. In Azerbaijan, where opposition is not allowed to parliament, we have no such mechanisms," Gadirli said.
Azer Mehdiyev, chairman of the public union "Assistance to Economic Research," said that international organizations could play a positive role in solution of the corruption problems. "In Kazakhstan the officials, except for the top officials, cannot be involved in business. And this ban, which has been imposed as a result of the World Bank"s influence, bears its fruit," he added.
"In Azerbaijan the courts are not independent and they cannot prevent corruption. The authorities are not interested in civil activity," Mehdiyev added.
The society itself is to blame. "One of the serious shortcomings of the civil society institutions is a low professional level of personnel."
In this situation only rare media can act as an instrument of struggle against arbitrariness. During the past years local press has published dozens of articles exposing illegal privatization, creation of conditions by the officials for their own business and other abuse of power.
Many officials do business through the offshore or fake companies and it is difficult to track them.
By the way, nobody resides at the apartment 3 at 7 Samad Vurgun street.

Xanbeyli Anar