

Currently released so far... 6230 / 251,287
Articles
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Amsterdam
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lagos
Mission USNATO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Tijuana
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
ASEC
AF
AE
AR
AORC
AJ
AU
AM
ABLD
AL
AMGT
ASUP
AFIN
APER
ABUD
AVERY
APCS
AEMR
ADCO
APECO
ASIG
AG
AA
AS
AFFAIRS
ASECKFRDCVISKIRFPHUMSMIGEG
AMED
AO
ACOA
AX
AROC
ATFN
ASEAN
AFGHANISTAN
AFU
AER
ALOW
AODE
ATRN
AID
AC
AGMT
CH
CO
CS
CE
CU
CLINTON
CG
CVIS
CMGT
CI
CJAN
CF
COM
CASC
CA
CBW
CM
CDG
CR
COUNTER
CD
CWC
CKGR
CN
CPAS
CJUS
CV
CONS
CT
CY
COUNTERTERRORISM
CIA
CACM
CDB
CAN
COE
COUNTRY
CLEARANCE
CACS
CONDOLEEZZA
CARSON
CL
CIS
CODEL
CTM
CB
ECON
EFIN
EAIR
EUN
EINV
ENRG
EG
ETRD
EPET
ETTC
ELAB
EU
ER
ET
EAGR
ECPS
ECIN
ELTN
EAID
EMIN
EWWT
EFIS
EIND
EC
ES
EN
EI
ENVR
ENGR
ENIV
EUNCH
ENVI
ETRDEINVECINPGOVCS
ELN
EZ
EXTERNAL
EINVECONSENVCSJA
EINT
EUR
ECINECONCS
ENNP
EFINECONCS
EK
ELECTIONS
ECUN
EINVEFIN
ECIP
EINDETRD
EUC
EREL
ECA
ENERG
ENGY
ETRO
EFTA
ECONCS
ECONOMICS
ECONEFIN
EINVETC
EINN
ESA
ETC
ETRDEINVTINTCS
ESENV
ETRDECONWTOCS
IN
IC
IR
IZ
IS
IAEA
IT
ICTY
IO
IA
IWC
ID
ICRC
ILC
INTELSAT
IMO
ISRAELI
IACI
ILO
ITRA
IBRD
IMF
ICJ
ICAO
ITALY
ITALIAN
IRAQI
INTERPOL
IV
IQ
IPR
INRB
ITPHUM
IIP
IL
INR
ITPGOV
IZPREL
IRC
INRA
INRO
IRAJ
IEFIN
IF
KDEM
KCRM
KJUS
KTIA
KWBG
KPAL
KIPR
KTIP
KE
KNNP
KGHG
KICC
KV
KTFN
KU
KCFE
KDRG
KWMN
KSCA
KGIC
KCOR
KFRD
KPKO
KSUM
KPRP
KPAO
KBCT
KIRF
KCFC
KISL
KREC
KSPR
KHIV
KBIO
KMCA
KMPI
KFLU
KSTH
KBTR
KS
KOMC
KOMS
KSEP
KPRV
KFLO
KHLS
KN
KWWMN
KUNR
KLIG
KSTC
KZ
KG
KRAD
KOLY
KTBT
KTDB
KOCI
KAWK
KCIP
KNPP
KWAC
KMDR
KAWC
KIDE
KSAF
KX
KWMNCS
KNEI
KCRS
KVPR
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KACT
KO
KFSC
KR
KPWR
KMIG
KSEC
KIFR
KDEMAF
KFIN
KGCC
KPIN
KPLS
KIRC
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KGIT
KBTS
KERG
KWMM
KRVC
KNSD
KVIR
KNUP
KTER
KDDG
KHSA
KMRS
KHDP
KTLA
KPAK
KNAR
KREL
KPAI
KTEX
KCOM
KNNPMNUC
KPOA
KRFD
KHUM
KDEV
KNUC
MOPS
MARR
MASS
MNUC
MO
MX
MCAP
ML
MTCRE
MR
MP
MY
MU
MIL
MAR
MC
MRCRE
MTRE
MA
MEPI
MV
MPOS
MD
MZ
MEPP
MOPPS
MAPP
MASC
MT
MERCOSUR
MK
MDC
MI
MAPS
MCC
MASSMNUC
MQADHAFI
MUCN
MTCR
MG
OREP
OVIP
OFDP
ODIP
OPDC
OAS
OTRA
OSCE
OECD
OIIP
OEXC
OPCW
OPIC
OPRC
OVP
OSCI
OTR
OSAC
OIC
OFFICIALS
OIE
PHUM
PREL
PGOV
PREF
PTER
PARM
PBTS
PINR
PINS
PHSA
PK
POL
PM
PINT
PE
PINF
PEL
PA
PARMS
PO
PLN
PROP
PALESTINIAN
PAO
PL
POV
PG
POLITICS
PEPR
PSI
PSOE
PU
POLITICAL
PARTIES
PBIO
PECON
PAK
POGOV
PINL
PKFK
PMIL
PY
PFOR
PHALANAGE
PARTY
PRAM
PMAR
PGOVLO
PUNE
PORG
PHUMPREL
PF
POLINT
PHUS
PGOC
PNR
PGGV
PNAT
PGOVE
PRGOV
PRL
PROV
PTERE
PGOF
PHUMBA
SENV
SY
SZ
SOCI
SO
SR
SNAR
SA
SP
SW
SMIG
SU
SCUL
SC
SAN
SN
SL
SG
SYR
SEVN
SF
SI
STEINBERG
SIPRS
SH
SNARCS
SOFA
SANC
SHUM
SK
ST
TRGY
TU
TBIO
TH
TS
TSPL
TT
TPHY
TSPA
TI
TK
TIP
TERRORISM
TZ
TX
TW
TD
TP
TC
TO
TNGD
TINT
TRSY
TR
TFIN
TURKEY
UK
UNGA
UN
UNHRC
UNMIK
UNO
UZ
UNSC
UP
UG
UNHCR
UNDC
US
UNAUS
USTR
UV
UNEP
UY
UNESCO
USUN
UAE
USEU
UNDP
UNCHS
UNVIE
UNCHC
UE
UNDESCO
USAID
Browse by classification
Community resources
courage is contagious
Viewing cable 07ASHGABAT1348, TURKMENISTAN CORRUPTION: WHAT HAPPENS IN
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07ASHGABAT1348.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
07ASHGABAT1348 | 2007-12-14 08:08 | 2010-12-12 21:09 | CONFIDENTIAL | Embassy Ashgabat |
VZCZCXRO1736
PP RUEHAG RUEHBI RUEHCI RUEHLH RUEHPW RUEHROV
DE RUEHAH #1348/01 3480853
ZNY CCCCC ZZH
P 140853Z DEC 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9871
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 3097
RUEHBJ/AMEMBASSY BEIJING 0912
RUEHKO/AMEMBASSY TOKYO 0786
RUEHIT/AMCONSUL ISTANBUL 1362
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHMFISS/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEHVEN/USMISSION USOSCE 1988
C O N F I D E N T I A L SECTION 01 OF 03 ASHGABAT 001348
SIPDIS
SIPDIS
STATE FOR SCA/CEN, EEB
AID/W FOR EE/AA (BOB WALLIN)
PLEASE PASS TO USTDA DAN STEIN
E.O. 12958: DECL: 12/14/2017
TAGS: EIND ETRD PGOV PREL TX
SUBJECT: TURKMENISTAN CORRUPTION: WHAT HAPPENS IN
ASHGABAT, STAYS IN ASHGABAT
REF: A. ASHGABAT 1335
¶B. ASHGABAT 1047
Classified By: XXXXXXXXXXXXX for reasons 1.4 (B) and (D).
¶1. (C) SUMMARY: Corruption and nepotism remain problems in
Turkmenistan, and Turkish firms and Bouygues have done
particularly well in the lucrative construction industry
because they have mastered the business environment here.
Bouygues CEO Martin Bouygues' close and direct relationship
to the president of Turkmenistan is an open secret. A
well-connected member of Turkmenistan's international
diplomatic community alleged that the price for introductions
to the president have risen from ten to 15 percent since
Niyazov's death. He also alleged that construction contract
prices are so high because construction companies must add 20
or 30 percent to their bids just to cover bribes -- and that
President Berdimuhamedov is engaging in more construction
contracts in order to amass more personal wealth, of which
Avaza (Ref. A) is a part. With all agreeing that corruption
is as much a part of Turkmenistan's business environment as
ever, the need to compete with firms not bond by U.S.
anti-corruption laws adds a new layer of complexity and
uncertainty for U.S. firms wishing to do business here. END
SUMMARY.
CONSTRUCTION INDUSTRY: MOST VISIBLY CORRUPT INDUSTRY
¶2. (C) At a dinner on December 4, a group of ambassadors
lamented that the Government of Turkmenistan awards
construction contracts only to Turkish firms, and XXXXXXXXXXXX
alluded to the "special" arrangement that French construction firm Bouygues
holds with Turkmenistan's government. When questioned
directly about the veracity of the rumor that Siemens is
encouraging the government of Turkmenistan on the idea of
installing one main satellite dish per building, XXXXXXXXXXXX
acknowledged Siemens' corrupt business practices. On December 5,
XXXXXXXXXXXX gave a wide-ranging account of his views
of corruption in Turkmenistan. The source said that
"Bouygues has not done $1.2 billion in work over the past
years only on the basis of the quality of their work," and
added that XXXXXXXXXXXX's comment about Bouygues probably
was in reference to the direct, personal relationship that
CEO Martin Bouygues has had with the former and current heads
of state of Turkmenistan.
PRICE HIKE FOR PRESIDENTIAL INTRODUCTIONS
¶3. (C) XXXXXXXXXXXX recently estimated that, based on
current rumors, bribes to senior officials for meetings with
the president have risen from ten percent under former
President Niyazov to 15 percent under President
Berdimuhamedov. XXXXXXXXXXXX emphasized,
however, that bribing is a private affair, which only very
few people in any given firm aware of it. Whatever happens
between Bouygues and Turkmenistan's president -- former or
current -- in all likelihood stays between them.
BRIBES AREN'T FREE -- SOMEONE PAYS
¶4. (C) XXXXXXXXXXXX also gave one
explanation for what seem to be very high construction
project costs in Turkmenistan. Alleging that the Government
of Turkmenistan owes everyone money, Turkish construction
firms and Bouygues begin work only after receiving a down
payment. (NOTE: According to the source, John Deere
distributor IPC just started taking unconfirmed letters of
credit. END NOTE.) Because it is very likely that the
Government of Turkmenistan won't pay the last ten percent,
ASHGABAT 00001348 002 OF 003
companies routinely add an additional ten percent to the
final negotiated price. Because corruption runs all the way
down to subcontractors, construction companies usually tack
on another 20 or 30 percent to the project price to make up
for the bribes that the various parties have to pay along the
way.
TEXTILE MINISTRY DETERMINED TURKISH MANAGERS OVERCHARGED
¶5. (C) The source said that the Ministry of Textiles became
suspicious and began checking on the actual prices of spare
parts bought by Turkish co-managers at joint-venture
factories. Ministry officials verified that the Turkish
partners grossly overcharged the Ministry for parts -- but as
the source explained, the managers "have" to add on
surcharges/bribes anywhere they can, including spare parts,
because they have to pay off Ministry officials to stay in
partnership at the factory. (COMMENT: This story about the
Ministry of Textiles seems to be consistent with the rumor
that Ahmet Chalik may have played a significant role in the
imprisonment of Minister of Textiles Jemal Goklenova under
President Niyazov because she favored eliminating Turkish
managers from the textile factories in order to let Turkmen
manage the factories themselves (Ref. B). END COMMENT.)
MORE RUMORS ON THE BIG TURKISH CONSTRUCTION COMPANIES
¶6. (C) Formerly prominent Turkish construction firms such as
Nursel, headed by Ibrahim Kollek, are out of favor. Rumors
of a falling out between Kollek and the Government of
Turkmenistan abound in Ashgabat, as well as a rumor that
Kollek filed a lawsuit against the government of Turkmenistan
in Turkey.
PRESIDENTIAL CORRUPTION...
¶7. (C) According to the source, there is an understanding
that higher-up officials should dole out a portion of these
bribes to their minions, and former President Niyazov
reportedly cracked down on those taking bribes who didn't
share the wealth with others down the food chain. From all
appearances, President Berdimuhamedov is engaging in the same
behavior, as Turkmenistan watchers and experts such as this
source have the impression that Berdimuhamedov's desire to
accumulate wealth is the motivating factor behind the many
large contracts the government engages in. Also, rumors
persist that provincial governors have to pay a bribe of
$100,000 for their jobs.
...PERHAPS AN EXPLANATION FOR THE MYSTERY THAT IS AVAZA?
¶8. (C) The source mentioned the Avaza Tourism Zone (Ref. A)
as an example of corruption -- and lack of any understanding
of infrastructure development -- in Turkmenistan. Depending
on the moment, the project plays the role of a free economic
zone, a touristic zone, or a port development project. As
the source pointed out, in a properly organized port
development project, studies on traffic and passenger flows
and architects' studies should precede work, and planners
would allocate approximately ten percent of the entire budget
to pay these technical experts before work began. As far as
anyone can tell, none of these studies have been done or
planned for in the Avaza budget, but planners expect to spend
$2.8 billion to upgrade the completely dilapidated jetties
and wharfs at the port alone -- including $212 million for a
seven-kilometer canal alone.
THE "RIGHT SORT" OF COMPANY
¶9. (C) The source said that a company offered one of his
contacts a 2.5% commission for introducing the "right sort"
ASHGABAT 00001348 003 OF 003
of European contractor -- i.e., a contractor with a sterling
reputation -- with the ability to disguise bribes from
auditors. The source refused to give any sort of identifying
information about his contact, but said that "people who
studied in Moscow have the right contacts," adding that "not
everyone has access" (to Russians in the know and who have
ties to Europe.)
WHERE IS THE MONEY KEPT? NO ONE KNOWS.
¶10. (C) All of this being said, no one knows the precise
mechanics of corruption due to anti-money laundering
procedures currently in place in the United States and
European Union, which require various proofs of identity and
residency in order to open a legitimate bank account.
However, the source said that XXXXXXXXXXXX
-- a former deputy minister -- has an account at Citibank in New York.
Some also suspect that, despite the Baltic countries'
ascension to the EU, Baltic banks are not following
anti-money laundering procedures, since many Turkmen citizens
have Baltic bank accounts.
¶11. (C) COMMENT: Although Turkmenistan is in a period of
reform, corruption is here to stay, at least for the
foreseeable future. Nevertheless, this aspect of doing
business in Turkmenistan is not dissuading others from
wanting to enter the market, since there still seems to be a
common acceptance that bribes are an integral part of the
bidding and pricing system. But for U.S. firms wishing to
enter Turkmenistan's business environment, the need to
compete with firms not bound by U.S. anti-corruption laws
adds a new layer of complexity and uncertainty. END COMMENT.
XXXXXXXXXX