Oil corporations and the fall of Toqayev
Daniel Brett | 28.01.2002 18:35
Kazakhstan's Prime Minister Qasymzhomart Toqayev quit his job today, forcing the entire government to resign. Last November, Toqayev had accused foreign oil companies of undermining the government for their interests. Did President Nazarbayev, Kazakhstan's dictator, bow to pressure from oil companies?
Kazakhstan is standing on the brink of an economic boom and is set to become one of the world's top five oil producers by 2010, rivalling countries like Venezuela and Nigeria. Foreign oil companies have flocked to Kazakhstan to take up oil concessions and engage in joint ventures with the state-owned Kazakhoil. However, the presence of billions of barrels of oil in the Caspian sea is proving to be a divisive issue within Kazakhstan's political establishment.
In November 2001, Kazakhstan became embroiled in a political crisis after some members of the cabinet accused President Nazarbayev of corruption. The ex-communist boss had placed members of his family and close friends in prominent positions - his daughter owned much of the media and his controversial son-in-law, Rakhat Aliyev, was deputy chief of the secret police. Nazarbayev susequently demoted Aliyev, his likely successor.
However, this was not enough for dissidents within the cabinet and parliament, who subsequently formed the Democratic Choice of Kazakhstan (DCK). Toqayev claims that the DCK was not genuinely interested in reform, but wants to carve up power for the 'akims' (regional political bosses) who he claimed were corrupt and were in the pay of foreign oil companies. Toqayev told the country that unless ministers allied to DCK left the government, he would resign. They resigned before they could be sacked and Toqayev remained in power.
It is well-known that political figures in Kazakhstan can be easily bought off. According to Transparency International, Kazakhstan is one of the twenty most corrupt countries in the world. With vast amounts of foreign money entering Kazakhstan, it is likely that many politicians are being bought off by oil companies. The stakes are high in Kazakhstan, for it is unique frontier territory for oil multinationals. Bearing in mind Enron's corrupt behaviour in Maharastra, India, we know that when the pressures on, corporate ethics fly out of the window.
Toqayev wanted the government to favour Kazakhoil in granting oil concessions and was determined to keep foreign companies at bay. He ended up getting axed, despite being the longest-serving member of government in the country's post-Soviet history. Were oil companies and the Western politicians they employ behind Toqayev's fall? Who is behind the DCK?
In November 2001, Kazakhstan became embroiled in a political crisis after some members of the cabinet accused President Nazarbayev of corruption. The ex-communist boss had placed members of his family and close friends in prominent positions - his daughter owned much of the media and his controversial son-in-law, Rakhat Aliyev, was deputy chief of the secret police. Nazarbayev susequently demoted Aliyev, his likely successor.
However, this was not enough for dissidents within the cabinet and parliament, who subsequently formed the Democratic Choice of Kazakhstan (DCK). Toqayev claims that the DCK was not genuinely interested in reform, but wants to carve up power for the 'akims' (regional political bosses) who he claimed were corrupt and were in the pay of foreign oil companies. Toqayev told the country that unless ministers allied to DCK left the government, he would resign. They resigned before they could be sacked and Toqayev remained in power.
It is well-known that political figures in Kazakhstan can be easily bought off. According to Transparency International, Kazakhstan is one of the twenty most corrupt countries in the world. With vast amounts of foreign money entering Kazakhstan, it is likely that many politicians are being bought off by oil companies. The stakes are high in Kazakhstan, for it is unique frontier territory for oil multinationals. Bearing in mind Enron's corrupt behaviour in Maharastra, India, we know that when the pressures on, corporate ethics fly out of the window.
Toqayev wanted the government to favour Kazakhoil in granting oil concessions and was determined to keep foreign companies at bay. He ended up getting axed, despite being the longest-serving member of government in the country's post-Soviet history. Were oil companies and the Western politicians they employ behind Toqayev's fall? Who is behind the DCK?
Daniel Brett
e-mail:
dan@danielbrett.co.uk