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Background

Azerbaijan is considered one of the most corrupt nations in the world.[1]Cite error: A <ref> tag is missing the closing </ref> (see the help page). Corruption seems to stand not as a problem for the government to be overcome, but an institutionalized way to run the country. Like a classic authoritarian country, the ruling family controls the mist wealth, distributing it through down-way hierarchy to its subordinates and cronies in order to buy their loyalty and guarantee to suppress any possible dissent. Nearly all government bodies of the country are run through corrupt ways as kleptocracy, embezzlement of funds, favoritism, protectionism, nepotism, cronyism, abuse of office etc., But the ruling regime's main corrupt feature is not simple theft of funds. It corresponds more to forceful appropriation of the wealth relying on repressive enforcement agencies to which it channels a part of huge sum of money gained through sail of resources, mainly oil to the western countries, extracted by technical assistance of the giant oil companies, like BP, Statoil and US entities.

The Aliyevs of soviet period and independence

Deep-rooted corruption which paralyzed progress in all spheres in Azerbaijan, is considered to be entrenched from the soviet time. It was intensified under rule of Brezhnev era corrupt leaders, culminating in Heydar Aliyev, the Azeri KGB chief and strongman, who was the first secretary of the Communist party of the soviet Azerbaijan from 1969 to 1982. After the soviet collapse, he came back to power as president of an independent Republic of Azerbaijan in 1993-2003, later succeeded by his son, current president Ilham Aliyev. Once considered the most effective and untainted from point of view of professionalism government agency of the Soviet Union, the KGB is especially associated with corruption in the soviet Azerbaijan:

"Soviet rule in the Muslim republics was a politically correct facade which concealed the reality of a population which looked far more to Mecca than to Moscow, ruled by a corrupt political elite whose Marxism-Leninism was often little more than skin deep. Even the local KGBs were, in varying degree, infected by the corruption. The area of the Muslim Caucasus in which KGB control seemed most secure during the 1970s was Azerbaijan. During the previous decade the local Party leader, Muhammad Akhund-Zadeh (his real name is actually Vali Akhundov), had turned corruption into an instrument of government under which a carefully calibrated system of bribery could purchase everything from university places to queue-jumping for apartments. In 1969, however, the local KGB chief, Geidar Aliyev (Heydar Aliyev's name in Russian transliteration), launched a 'crusade against corruption' which swept Akhund-Zadeh (Akhundov) from office and led to his own appointment as Party boss. During the next decade Aliyev supposedly 'cleansed' Azerbaijani and clamped down on Muslim dissent by putting the republic under what appeared to be direct KGB rule. Baku, the capital and one of the main centres of the Soviet oil industry, became a propaganda showcase for 'advanced socialism during the oil boom of the 1970s. In reality, claims the Pultzer prize-winning journalist David Remnick, 'Aliyev ruled Azerbaijan as surely as the Gambino family ran the port of New York. The Caspian Sea caviar mafia, the Sumgait oil mafia, the fruits and vegetables mafia, the cotton mafia, the customs and transport mafias - they all reported to him, enriched him, worshiped him."[2]

Aliyev was said also engaged in race with Uzbek soviet leader Rashidov, in bribing out Brezhnev with luxury presents:

"Rashidov bought Brezhnev at least half a dozen luxury European sports cars as well as building extravagant hunting lodges for Brezhnev's occasional forays into Uzbekistan. Rashidov also indulged the weakness for diamonds of Brezhnev's daughter, Galina; Brezhnev's son-in-law, Yuri Churbanov, later admitted receiving, among other gifts, a suitcase stuffed with banknotes. Aliyev was not to be outdone. In 1982 he presented Brezhnev with a ring set with a huge jewel, representing him as the Sun King, surrounded by fifteen smaller precious stones representing him as the Union Republics - 'like planets orbiting the sun', Aliyev explained. Overcome by emotion, Brezhnev burst into tears in front of the TV cameras.

Corruption in the Muslim republics was condoned in Moscow. In 1971 Kunayev was elected a full member of the Politburo. With the election of Aliyev in 1982, shortly after Andropov succeeded Brezhnev as Soviet leader, the Politburo had for the first time two full members of Muslim origin, as well as Rashidov as a candidate member. Though Andropov may have detested the Russian of the Brezhnev era, his promotion of Aliyev (whom he made First Deputy Chairman of the Council of the Ministers), like his previous disinclination to take action over Rashidov, demonstrates that he had different standards for Muslim regions. It was not until 1983 that Andropov finally confronted Rashidov with evidence of his corruption. Soon afterwards Rashidov died from heart failure - or, according to some accounts, committed suicide. A secret investigation into the 'Uzbek Mafia' revealed what has been described as 'one of the largest cases of public office corruption in contemporary history. It was left to Gorbachev to sack Kunayev and Aliyev in, respectively, 1986 and 1987, and to reveal some (but by no means all) of the investigation into the Uzbek scandal in 1988".[3]

Before coming to power, current president Ilham Aliyev had been mired in casino affair scandal in 1998. It was reported that he had lost in gambling nearly $6 million.[4] During the presidency he became involved with other huge corruption stories. His family's owning hundreds of millions dollar due to acquirement of luxury mansions in Dubai (registered under the name of his 11 years old son), shares in offshore companies, banks, gold mine, communication and construction companies in Azerbaijan, by embezzlement, abuse of office and presidential family privileges, have been covered by the western and local press.[5][6] But corruption revelations goes uninvestigated as there is no independent judiciary in Azerbaijan and officials dismiss any information accusing them in wrongdoing, citing the sources anonymous or "ungrounded". It is characteristic to the country, as noted:

"Like many authoritarian governments, the Azerbaijani regime is highly insular and opaque. Little information about its inner workings can be fully trusted. Most is obtained through gossip or the small opposition press. The former is often unverifiable; the latter frequently highly filtered, exaggerated or manipulated, reflecting the outlet’s agenda or that of individual members of the ruling elite using it for their purposes".[7]