Civil Servant Known as "Baron"
Ahmad Ahmadzade is one of the civil servants, who held various positions during the Soviet Union regime. He started off as a workman in 1961, and somehow gained "Baron" for a nickname. Apart from the fact that the cooperation he is leading is a subject to numerous bribery and embezzlement scandals, he also made sure all his relatives now hold good positions, which in fact made him the "clan elder." He is also the son of the well-known professor Juma Ahmadzade, and named his own son after his father. By marrying his son off to the daughter of Elman Rustamov, the chair of the Central Bank, he further straightened the family ties.
A quick recall: Azerbaijan Amelioration and Water Management (AAWM) OJSC currently led by Mr. Ahmadzade is an entity consisting of 120 departments. Department of irrigation systems - 48 offices, collectors' maintenance department - eight offices, water reservoirs, hydro junction and magisterial channels department - 13 offices, irrigation departments - four offices, automatic irrigation department - 10 offices, Sub Artesian wells maintenance department - nine offices, melio service departments - 23 offices, ASC Azerbaijan amelioration and water management, technical production and acquisition department, Azerbaijan state institute of water management units design, scientific research institute of water problems, research institute of hydrotechnics and melioration, hydrogeological amelioration service department, united department of irrigation facilities and construction amelioration and Bahramtapa reinforced-concrete plant are among the 120 establishments. At the same time, around 25,000 people are employed by AAWM. Annual total turnover of organizations lead by Mr. Ahmadzade pass 1 billion manats.
When investigating annual supply transfers of the entities under the AAWM, we see thousands of millions of manats in circulation. In 2013, technical production and acquisition department has transferred 18,132,236 manats only on purchase of materials, spare parts for tractors, spare parts for water pumps, water pumps and etc. Apart from the contingency budget, the AAWM also receives funding from the President's reserve fund. For instance, as per the President's decree at the beginning of this year AAWM has received 15 million manats from Azerbaijan President's Reserve Fund in addition to its already allocated budget.
In October 2013, Mr. Ahmadzade in his interview to press claimed that "the amount of funds allocated to the amelioration has increased 7.3 times, and 48 times for the main capital investment in all financial sources."
The established tradition in our country called "when there is 'big money circulation' in a large organization, there should be serious fraud cases" is applicable this time, as well. Although Mr. Ahmadzade's name was among the civil servants to be dismissed from their position after the Presidential elections, he still holds on to it. Even though problems arose during Kura floods, fraud associated with construction of irrigation systems (for instance, irrigation systems are constructed in most of the regions, but the water provision is still not in place) have damaged Mr. Ahmadzade's reputation, he is still not dismissed from his position.
In our investigation about Elman Rustamov we have mentioned that since in Azerbaijan it is illegal for the civil servants to be engaged in business operations, most of them register their businesses under their children's names. Mr. Ahmadzade's son, Juma Ahmadzade, is now a young owner of a huge business empire thanks to his father. In our previous investigation we have already reported about his two companies in the U.K. and Czech Republic - "ALPS s.r.o." and "GYUNEL LIMITED". This investigation will shed light on another company called "GLOBALLY LTD."
Today we will be mostly reporting on Mr. Juma Ahmadzade's companies in Azerbaijan.
"Name of the commercial institution: "Project" LTD
Registration number: 1401949901 Organizational legal structure: Limited Liability Company Legal Address: Alimardan Bay Topchubashov str., apt. 110a, Nasimi District, Baku, AZ1014 Charter capital: 100 manats Fiscal Year: January 1 - December 31 Legitimate or legal representative: Umarov Nadir Osman Oglu Founders: Umarov Nadir Osman Oglu, Ahmadzade Juma Ahmad Oglu Date of State registration: April 4, 2011 Name of the commercial institution: "Mugal" LTD Registration number: 4300197801 Organizational legal structure: Limited Liability Company Legal Address: Gakhbash village, Gakh region, AZ3419 Charter capital: 10 manats Fiscal Year: January 1 - December 31 Legitimate or legal representative: Umarov Nadir Osman Oglu Founders: Ahmadzade Juma Ahmad Oglu Name of the commercial institution: "Uluyard" LTD Registration number: 4300197931 Organizational legal structure: Limited Liability Company Legal Address: Gakhbash village, Gakh region, AZ3419 Charter capital: 10 manats Fiscal Year: January 1 - December 31 Legitimate or legal representative: Umarov Nadir Osman Oglu Founders: Ahmadzade Juma Ahmad Oglu Name of the commercial institution: "Advisers CO" Registration number: 2001846821 Organizational legal structure: Limited Liability Company Legal Address: 26 Afiyaddin Jalilov, apt. 26, Khatai district, Baku, AZ1025 Charter capital: 100 manats Fiscal Year: January 1 - December 31 Legitimate or legal representative: Hasanli Mammad Ramis Oglu Founders: Ahmadzade Juma Ahmad Oglu Date of State registration: January 28, 2011"
Although, the Ministry of Taxes holds information on the names of the company founders confidential, we were able to identify the entities that belong to Mr. Juma Ahmadzade.
Founder of companies like "Advisors CO," "Project," "Mugal" LLC, and "ULUYURD" LLC, Mr. Juma Ahmadzade also owns hotel chains. According to reliable sources, President Ilham Aliyev has personally participated in the grand opening of one of his hotels. "El-Resort" hotel in Gakh district, currently completely privatized by Amhedzades, is one of the hotels in whose opening the President participated. Information on others will be given below.
Claimed to be owned by Ahmadzades (we weren't able to confirm this information yet) "Ilisu Uludagh Tourism and Recreation Complex"'s grand opening also featured President Aliyev.
One of the brothers of Mr. Ahmad Ahmadzade, Mubariz Ahmadzade, is the chief executive of Zagatala district, the region famous for news on bribes requested from company managers, expensively sold Zagatala land properties, construction business, foreign companies. In particular, the news about his business in Cyprus and the higher education institution he bought there has been circulated for a while. When investigating Mr. Mubariz Ahmadov's business, we stumbled upon an interesting fact. Once again, we would like to recall the law that prohibits business practices to the civil servants in Azerbaijan. Here is the information on the company he has founded.
"Name of the commercial institution: "Gakh Avto" LLC Registration number: 4300204811 Organizational legal structure: Limited Liability Company Legal Address: 15 Mirza Fatali Akhundov str., Gakh region, AZ3400 Charter capital: 10 manats Fiscal Year: January 1 - December 31 Legitimate or legal representative: Hajiyev Sarvar Babash Oglu Founders: Ahmadzade Juma Ahmad Oglu Date of State registration: September 25, 2009"
Investigation shows that this company has been registered in September 2009. The company owned by the chief executive of Zagatala district, has received an offer to construct the Depot of Gagh district a few months after its establishment. As we mentioned earlier, President Aliyev participated in the opening of the Depot. Clearly, the President personally cuts the red-ribbon at the grand opening of the premises that were illegally constructed by the civil servant who isn't allowed to be engaged in business activities.
Just his brother Ahmad, Mubariz Ahmadzade held a number of positions during Soviet era, and is also a former chief executive of Gakh district. At the moment this position is occupied by his cousin, Musa Shakiliyev. In general, this family tends to pass over the positions from one to another. For instance, another brother of Ahmadzades, Farman Ahmadzade, used to be the chief medical officer at Gakh District Hospital. His son Mr. Tarlan Ahmadzade took over his position after his father passed away from a heart attack at his office. Let's go back to the current chief executive of Gakh district, Mr. Shakiliyev. Basically, cousin Shakiliyev is a pawn in the game of Ahmadzades. Gakh is still under their complete control.
However, local people are very unhappy with Mr. Shakiliyev. Among people he is known as 'No. 1 businessman' of the district rather than the chief executive. At the expense of Gakh forests, Mr. Shakiliyev extended his own furniture company. Moreover, loyal to the family traditions, jointly with Eldaniz Shakiliyev, who owns "Gakh Tobacco," the largest company in the district, Mr. Musa Shakiliyev continues to make a fortune.
Name of the commercial institution: "Gakh Tobacco" Open Stock Company Registration number: 4300006871 Organizational legal structure: Open Stock Company Legal Address: Goraghan, Gakh region, AZ3420 Charter capital: 507384.00 manats Fiscal Year: January 1 - December 31 Legitimate or legal representative: Eldaniz Shakiliyev Shaban Oglu Date of State registration: November 09, 1998" Considering the fact that Ahmadzades own the biggest businesses in the region, there is not much left for Mr. Musa Shakiliyev. Therefore, the chief executive ruthlessly exploits the locals. In particular, the family is trying to promote the Ilisu resort, and therefore, restricts any entrepreneurial activities or initiatives coming from locals in the region. People who made a living from small enterprise activities in the past, are now deprived the chance to continue. The locals are banned from cutting the trees in the forests and selling them to furniture workshops. This task is totally monopolized by the chief executive. Aware of the fact that people will complain to the President who participated at the opening of the bridge over Hamamchay river at the Ilisu-Saribash road in Gakh, he did not allow them to approach the President in the first place.
Hashim Hasanov, appointed as the executive officer for Ilisu village is the husband of the former chief executive Mr. Mubariz Ahmadzade's daughter's sister-in-law. Mubariz Ahmadzade's son-in-law, Elyar is holding a position at the Ministry of Communications.
At the same time, Mr. Vuqar Ahmadzade, the head of the Gakh district department of the State Social Protection Fund belongs to this family as well.
Vuqar Aliyev is one of the highly unpopular civil servants in Gakh. His wealth is not any less than of the chief executive's. Moreover, locals we have talked to suggested to investigate the head of the Gakh district of the State Social Protection Fund. We are also presenting you a number of companies owned by Ahmadzade-Shakiliyev family.
"Name of the commercial institution: "JORASUNI" LLC Registration number: 1302759571 Organizational legal structure: Limited Liability Company Legal Address: Zahid Khalilov street 68, block 586, apart 88, Yasamal district, Baku, AZ1065 Charter capital: 10 manats Fiscal Year: January 1st-December 31st Legitimate or legal representative: Ahmadzade Joshgun Mubariz Oglu Founders: Ahmadzade Joshgun Mubariz Oglu Date of State registration: January 23, 2012 Name of the commercial institution: "CHAGHDASH" LLC Registration number: 1600884291 Organizational legal structure: Limited Liability Company Legal Address: Jamshid Nakhchivanski 86, apart 48, Nizami district, Baku, AZ1119 Charter capital: 10 manats. Fiscal Year: January 1st-December 31st Legitimate or legal representative: Ismayilov Samad Gasim Oglu Founders: Shakiliyeva Suraya Baba Qizi Date of State registration: April 16, 2008 Name of the commercial institution: "Elit-R1" LLC Registration number: 4300252431 Organizational legal structure: Limited Liability Company Legal Address: Nasimi street 4, Gakh city, Gakh region, AZ3400 Charter capital: 10 manats Fiscal Year: January 1st-December 31st Legitimate or legal representative: Shakiliyev Neymat Baba Oglu Founders: Farhadov Farhad Asad Oglu Date of State registration: April 07, 2011"
The owner of the last company, Joshgun Ahmadzade, is the deputy chief of the customs department of motor transport of the State Customs Committee. You must also be familiar with his name from press. To avoid repetition, we are not presenting the list of his companies in this article.
At the end I would like to note that the recently dismissed former head of the Department on Combating Human Trafficking, Ministry of Interior Affairs, police colonel Javad Shikhaliyev is the husband of Ahmad Ahmadzade's sister.
As you can see, appointed to various positions, Ahmadzade family members and relatives were also able to manage their own businesses and establish a clan. We could only investigate a fraction of the whole picture. During the investigation I witnessed another case of violation of law. A lot of companies established in 2013 won bidding for the AAWM projects, whereas, according to law issuance of such bids to the entities with less than 3 years of activities is illegal. Therefore, I am now working on another article covering bidding and financial statements of the mentioned companies to shed some light on this matter separately. Stay tuned..
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