[Congressional Record (Bound Edition), Volume 149 (2003), Part 17]
[House]
[Page 23276]
[From the U.S. Government Publishing Office, www.gpo.gov]




            THE SYSTEMATIC CORRUPTION OF THE ALIYEV DYNASTY

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from New Jersey (Mr. Pallone) is recognized for 5 minutes.
  Mr. PALLONE. Mr. Speaker, I come to the floor this afternoon 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, unless 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, Mr. Speaker, of the father and the 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 Aliyevs' desire. Both were implicated in a court case that was 
unsealed in New York this week. The actual case had 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 Heydar and Ilham Aliyev had never intended to privatize the 
oil company in the first place. Instead, they stole over $100 million 
in the 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 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 of the United States 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 do not.

                              {time}  1445

  Now, 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 Cooperation and Security in Europe's Minsk 
Group, which is charged with moving the two parties towards peaceful 
settlement, has been 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 their way to 
establishing the first dynastic regime in the former Soviet Union. Not 
only is this a concern for the entire Caucasus region but also other 
leaders in 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. The current 
Secretary of Defense, Donald Rumsfeld, visited Iraq with a delegation 
in 1988. 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.

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