Corruption in Uzbekistan
It is also one of the world's most corrupt countries,[2] and among the contributory factors is its possessing the second largest economy in Central Asia, its large reserves of natural gas, and its geographical position between the rival powers of the so-called Cold War II.
[5] Transparency International wrote, "Key steps include creating an anti-corruption agency, strengthening legislation and liberalising the economy.
[2] Uzbek artist Vyacheslav Okhunov told Der Spiegel in 2015 that the late Islam Karimov, then Uzbekistan's president, was "a dictator"[3] who exhibited Mafioso tendencies.
Karimov has been accused of ruling Uzbekistan with an iron fist for a quarter-century, shaping a culture that "has a greater resemblance to North Korea than China.
The group states that Karimov's virtually absolute power allowed him to exploit every sphere of activity in his country for personal economic benefit.
In May, the Swedish media made documents public that suggested Karimova had aggressively dictated the terms of the TeliaSonera contract and threatened it with obstructions.
Related money-laundering investigations in Switzerland and Sweden continued throughout the year, and hundreds of millions of dollars in accounts connected to the case being frozen by authorities.
An August 2015 report stated that U.S. prosecutors were asking authorities in Ireland, Belgium, Luxembourg, Sweden, and Switzerland to seize assets of about $1 billion in connection with their investigation.
[15] Radio Free Europe/Radio Liberty reported in January 2015 that executives at the Norwegian telecom firm Telenor, which owns one-third of Vimpelcom, had knowledge about millions in bribes.
[17] A July 2015 report stated that U.S. authorities were seeking to seize $300 million in bank accounts in Ireland, Luxembourg and Belgium, alleging that the funds were bribes paid to Karimova.
[12][18] In August 2015, Radio Free Europe/Radio Liberty reported that Uzbek authorities had arrested nine suspects in connection with probes, including two top executives at a Coca-Cola bottling plant in Uzbekistan, which Karimova formerly owned.
[2] Although the judicial system is required to uphold "investor rights and the sanctity of contracts," in practice it is said to regularly favor "state-owned or government-affiliated entities.
"[21] Court procedures in Uzbekistan, The Heritage Foundation says, "fall short of international standards, and powerful figures can expropriate property with impunity".
A 2014 report stated that police corruption had risen recently owing to the currency exchange market coming under the control of known criminal groups.
"[22] The Uzbek-German Forum for Human Rights called the quotas an 'unprecedented degree of extortion', as workers were made to continue their labor in exchange for food and housing.
"[2] Corruption is ubiquitous in the public procurement sector, which is characterized by widespread conflicts of interest, a lack of transparency, and bribes being extorted in exchange for government contracts.
These firms cite a "lack of transparency in bureaucratic processes, including procurement tenders and auctions, and limited access to currency convertibility, stimulate rent-seeking, which public sector employees often justify by pointing out their low wages.
"[21] To secure professional appointments, win government contracts, obtain exemptions from rules, escape criminal prosecution, receive public services, and earn preferences, bribery is a necessity, according to the U.S. Department of State.
"[21] Time magazine reports that tenders and government jobs are easily attained through bribery, causing unqualified people to rise up in positions.
[21] For eighteen months beginning in October 2011, the government prevented the production and distribution operations at a brewery owned by the Danish Carlsberg Group.
[21] In September 2012, the Tashkent City Criminal Court found Uzdunrobita, a cellular-phone firm wholly owned by the Russian company MTS, guilty of financial crimes, and seized its assets.
[2] The nation's criminal code forbids "all major forms of corruption"[21] but the Business Anti-Corruption Portal reports that this law is poorly enforced.
[21] To date no international or local organizations have been granted permission to monitor or analyze corruption in Uzbekistan besides the General Prosecutor's Office, which is under the control of the Uzbek ruling regime.
[21] Owing largely to its strategic location and its natural gas supplies, many countries have been loath to pressure Uzbekistan to improve its corruption record.
Der Spiegel suggested that the German government may foresee its relations with Uzbekistan as a means of profiting from planned natural gas pipelines under consideration of construction.
