Posts

Wikileaks Redactions: It’s Not Just the Chinese that Bribe for Oil

Given the past history of how newspapers have redacted (or not) Wikileaks dumps, I was very interested in an article that reveals what the Guardian (or one of its media partners) redacted in a cable on Kazakh corruption. The Guardian summarizes the cable this way:

Top Kazakh energy official reveals the four principal gate-keepers around President Nursultan Nazarbayev, including Timur Kulibayev, the favoured billionaire presidential son-in-law.

But read more closely, it serves to record Ambassador Richard Hoagland’s judgment that KazMunaiGaz First Vice President Maksat Idenov is currently (on January 25, 2010) successfully ensuring that two big hyrdocarbon projects will be developed according to “international standards”–which seems to imply something about the level of bribery involved, but it’s not entirely clear whether that implies less bribery or none at all. The big question, in any case, is whether President Nazarbayev’s son-in-law, Kulibayev, will demand bribes associated with the projects.

But as Israel Shamir reveals in an article for Counterpunch (here’s a Fast Company article with more background on Shamir) there are three details that have been redacted in the Guardian version, all of which make the role of bribery more obvious and point to much closer British, Italian, and US ties to that kind of bribery.

In the first instance, the Guardian version of the cable redacts an explicit reference–attributed to Idenov but not a direct quote from him–to the role of bribery in Kazakhstan and in capitalism more generally. (The bolded text is what is redacted in the Guardian version.)

According to Idenov, in Kazakhstan, market economy means capitalism, which means big money, which means large bribes for the best connected.

But it’s not that analogy which seems to tie the US and Britain more closely to the culture of bribery in Kazakhstan. With two other redactions, the Guardian version of the cable hides the ties between British Gas Country Director for Kazakhstan, Mark Rawlings, and a US citizen recently acquitted of bribery because he had offered the bribes at the behest of the CIA.

When the Ambassador arrived, Idenov was barking into his cell phone, “Mark, Mark, stop the excuses! Mark, listen to me! Mark, shut up right now and do as I say! Bring the letter to my office at 10:00 pm, and we will go together to take it to (Minister of Energy and Mineral Resources, MEMR) Mynbayev at his house.” On ending the call, Idenov explained he was talking to British Gas (BG) Country Director for Kazakhstan Mark Rawlings who had missed the deadline to deliver a letter about arbitration on the Karachaganak super-giant oil-field project (reftel). Still clearly steamed, Idenov alleged, “He’s still playing games with Mercator’s James Giffin,” the notorious AmCit fixer indicted for large-scale bribery on oil deals in the 1990s, whose case drags on in the Southern District Court of New York. “I tell him, ‘Mark, stop being an idiot! Stop tempting fate! Stop communicating with an indicted criminal!'” Idenov asked, “Do you know how much he (Rawlings) makes? $72,000 a month! A month!! Plus benefits! Plus bonuses! Lives in Switzerland but supposedly works in London. Comes here once a month to check in. Nice life, huh?”

As Shamir explains in his article, Giffen was ultimately hailed as a patriot by the judge who dismissed most of the Foreign Corrupt Practices Act charges against him in November 2010 (that is, ten months after this cable was written, and around the same time the US signed a new airspace deal with Kazakhstan). Main Justice provides background of how State Department considerations–they didn’t want prosecutors to mention that President Nazarbayev was the recipient of the bribes Giffen was alleged to have arranged–and CIA stonewalling–they refused to provide the details of what Giffen claimed was his role in their “intelligence collecting” operations–led to the dismissal of most of the charges.

Read more