Voice of Democracy
Published by Kazakhstan 21st Century Foundation · Washington, D.C. · Sept. 12, 2003

THE TRAIN IS LEAVING THE STATION -- That warning so familiar to anyone who remembers the Watergate scandals as federal prosecutors advised targets in that criminal conspiracy that it was time to cooperate or face the consequences is being heard once again in the Kazakhgate scandal. This time it is the Kazakh dictator who is in the sights of the Department of Justice. Informed sources close to the investigation tell VOD that Nursultan Nazarbayev faces federal indictment on numerous criminal charges. And even though the likelihood of his being hauled into a U.S. courtroom, much less being sent to jail, are slim to none, but that doesn't lessen the threat.

An indictment will render irreparable damage to his international stature and make it more difficult for him to expand relations with Washington and other western governments. The Congress will be reluctant to vote for military and other assistance to an indicted criminal, and his abysmal human rights record will only worsen that situation. He is reportedly trying to cut a deal but unwilling to give up documents and info feds looking for in making their cases against Nazarbayev American advisor James Giffen and former oil minister Nurlan Balgimbaev and oil companies, particularly looking at Mobil and Chevron-Texaco.

Federal prosecutors have subpoenaed ChevronTexaco to testify before a grand jury in New York investigating allegations of bribery in a Kazakh oil and gas project the company was participating in, reports the Financial Times [http://news.ft.com/]. They want documents relating to dealings with Nazarbayev, Balgimbaev and Giffen. Giffen is already under indictment on bribery charges and former ExxonMobil executive J. Bryan Williams pleaded guilty to tax evasion charges -- all related to Kazahgate. Federal prosecutors are increasingly frustrated with being jerked around while Nazarbayev waits for a miracle to rescue him. Their message to him is the window of opportunity is closing, the clock is ticking and time is running out if he wants to make a deal.

Translation: Nazarbayev can hire all the high-prices lobbyists he wants -- not all the bribe money has been frozen -- and they can tell him the investigation can be killed with their political clout, but he'd be smarter saving his money to hire criminal attorneys and save up to pay his fines, penalties and settlement costs.

Justice is demanding more cooperation and documents for their investigation. If Nazarbayev wants a way out, it is not by political pressure. He already went personally to Vice President Dick Cheney, who told him, according to a highly reliable source, "I can't help you. What you need is a good lawyer."

Feds are also offering to release some or all of the $120 million in funds frozen in Swiss bank accounts in exchange for full cooperation. Nazarbayev is a target of the investigation, but know it will be difficult to impossible to get him into a court room. For his part, Nazarbayev is "still in denial," says a source close to the case and thinks he did nothing wrong. He is getting strong political advice, including from within his own party, to authorize a high level independent investigation of Kazakhgate. Without an independent parliament which could conduct such an inquiry, as is the case in America and Britain, Nazarbayev is told the only way to clear this up is to permit the full examination of the documents, participants and events that have come to be known as Kazakhgate.

What is needed, Nazarbayev is hearing, is to move beyond this period of denial and hope that everything will just go away, and promptly name a blue ribbon panel comprised of figures from inside and outside Kazakhstan who have international stature as well as reputations for independence and integrity. Only a free, fair and public inquiry can open the way to restoring faith in Kazakhstan as a place to invest and a government to trust.

For the full stories, see the web citations above or contact us at News@Kazakhstan21.org or see VOD Archives [http://iicas.org/english/enlibrary/libr_16_03_01kp.htm]. The Kazakhstan 21st Century Foundation promotes democracy and human rights in Kazakhstan through public affairs and educational programs in the United States and Europe. This material is distributed by Kazakhstan 21st Century Foundation.

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