Issue link: https://maltatoday.uberflip.com/i/252940
maltatoday, SUNDAY, 2 FEBRUARY 2014 15 News conflicts of interest and pref- erential treatment "Our report raises serious concerns that the Azerbaijani people are not seeing the full benefit of their country's oil boom," said Simon Taylor, Global Witness Director. SOCAR accuses Global Witness of envy SOCAR's reaction to Global Witness's findings is to dub the report as an attempt at portraying it in a negative way "and with envy the increasing influence of SOCAR", accus- ing the organisation of rely- ing on "inaccurate sources of information while some of the information used in the report is false or outdated." SOCAR justified its engage- ments with private individu- als involved in its business model. "Being one of the largest oil and gas companies in the region and in the world in the course of carrying out its projects in Azerbaijan and abroad SOCAR attracts partners with extensive business experi- ence." The company claims it is neces- sary to establish different special- ized firms in order to hedge trade, production and other risks in the course of conducting business. SOCAR Trading was established as a trading vehicle (joint venture) of SOCAR through the initiative by Anar Aliyev. "The trading company delivered Azeri oil for the first time to the world's stock markets under its own brand name," SOCAR said, saying that SOCAR Trading also deals in oil from other countries. While the Global Witness report claims that SOCAR uses its shell companies to effectively sell its oil to itself, SOCAR claims its market- ing and economic operations de- partment is selling the oil to 100% owned subsidiary, SOCAR Overseas LLC (DIFC) – of the United Arab Emirates – to pass on the oil to SO- CAR Trading. The reason is so that SOCAR can exert price control over oils sales, using a UAE company to minimum costs on letters of credits with banks. SOCAR has accused Global Wit- ness of being part of an internation- al conspiracy to discredit it. The Malta connection The report by Global Witness reveals that SOCAR Trading SA's parent company is a Malta-based registered company called Supra Holding, which was based in Old Bakery Street in Valletta. The report includes a copy of an extraordinary resolution adopted by the shareholders of Supra, signed in Malta in 2008 by Anar Aliyev on behalf of Heritage General Trad- ing, Rovnag Abdullayev on behalf of the State Oil Company, and Valery Goluvushkin on behalf of Renfred Holdings. In Malta, SOCAR Trading Limited is registered under the same compa- ny number previously used by Supra Holdings. In total, five companies are reg- istered in Malta under the SOCAR brand name, three based in Ta' Xbiex and two in the address pre- viously used by Supra Holdings in Valletta. 1. SOCAR Oil and Gas Interna- tional Holdings was registered in August 2013 and is entirely owned by the state of Azerbaijan. 2. Also registered in the same Valletta office is SOCAR Oil and Gas International, which is entirely owned by the SOCAR Oil and Gas International Holdings. 3. The Ta' Xbiex office hosts SO- CAR Investments and Finance, registered in 2012, which is in turn owned by SOCAR Trading Hold- ings Ltd and privately-owned SO- CAR International DMCC. 4. Also based in Ta' Xbiex is SO- CAR Trading Holding, registered in 2010 as a company belonging to SOCAR and to Nicosia-based Hoi- jare Investments. 5. The third company registered in the same address is SOCAR Vetting Company Limited, owned by Istan- bul based Aykac Alaatin. ElectroGas Malta, the winning consortium that will supply gas for the new Delimara power station, includes German multinational Seimens, SOCAR Trading SA and West African company Gasol. It also includes GEM Holdings – a company owned by Gasan Group, Tumas Group, and a pharmaceuti- cal company owned by Paul Apap Bologna, a member on the MEPA board. SOCAR will provide a floating gas terminal on a charter basis for 18 years, exclusively supplying lique- fied natural gas for the project. In an interview with London- based International Oil Daily, Gasol CEO Alex Buxton had credited the success of the ElectroGas project with the landslide victory of the La- bour Party. But the company also participated in an expression of in- terest and public tender for the sup- ply of the power-purchase and sale agreement. READ THE FULL REPORT www.globalwitness.org/library/ azerbaijan-anonymous Since the publication of the report Socar and Anar Aliyev have published statements in response. These statements are available at: http://new.socar.az/socar/en/news- and-media/news-archives/news- archives/2013/12/13 and http://www.ugepte.com/index.php?pag e=page&MasterPageID =1&ID =54 The only photo of Anar Aliyev that Global Witness could locate The report reveals that SOCAR is a Malta-based registered company in Old Bakery Street, Valletta Azeri gas suppliers accused of 'opaque trading practices' Nobel-nominated Global Witness accuses Malta's gas supplier SOCAR of using opaque trading practices to enrich a few individuals Migrant detention centres exempt from planning rules JAMES DEBONO THE army has been effectively ex- empted from the planning regime when seeking permits to develop detention centres and other recep- tion facilities for migrants. Malta's policy of mandatory de- tention for irregular migrants for a maximum period of 18 months results in overcrowding in these facilities whenever the country is faced by an increasing influx of mi- grants. But the government seems to have found a way to deal with emergencies by granting itself powers to override planning obsta- cles to build new facilities. Under the new rules, the home affairs minister can declare that a development related to migration matters "is urgently required for humanitarian, security or other rel- evant" reasons, allowing the army to bypass planning regulations and proceed with construction work. The new law amends the rules for development notification or- ders (DNO), a simplified planning procedure initially foreseen for small-scale developments like traf- fic lights and internal alterations in homes. Such development does not require the preparation of a case officer report. Developments "relating to migra- tion matters" has now been intro- duced as a new category for DNOs, and applies to any entity responsi- ble for the provision of reception services for asylum seekers. But the Armed Forces of Malta, which house the Detention Servic- es Unit, will not even need a DNO when a development is justified by "security" and "humanitarian" rea- sons. The only condition imposed is whether the development takes place on scheduled property like historical buildings or Natura 2000 sites, warranting the minister to obtain the clearance of the Super- intendent for Cultural Heritage and MEPA, as the authority responsible for environmental protection. Similar powers to override envi- ronmental regulations were already given to the AFM in September 2013, which now does not require a DNO for a development justified by "national security reasons". National ombudsman Joseph Said Pullicino had revealed in his annu- al report that the Hal Far migrants' open centre was not even covered by a MEPA permit.