Issue link: https://maltatoday.uberflip.com/i/361046
maltatoday, SUNDAY, 10 AUGUST 2014 10 News Malta firm is node in Azerbaijani dynasty's grip on telecoms industry MATTHEW VELLA A Maltese company has featured as one of the vehicles being used in a network of holding companies, to house the financial interests of Azerbaijani president Ilham Ali- yev's two daughters in the country's largest mobile phone business, Az- ercell. FA Invest Malta Limited, located in Birkirkara, was created in Octo- ber 2011 to take over a 6.5% share- holding from a shareholding com- pany of Azercell. An exposé by journalist Khadija Ismailova, for the not-for-profit Organized Crime and Corruption Reporting Project (OCCRP), il- lustrated the far reach of Aliyev's daughters Leyla and Arzu Aliyeva, in the Azerbaijani telecoms indus- try – with major shareholdings in both Azerfon, the country's third- biggest company, and offshore reg- istrations in Azercell, the largest company. The OCCRP report claims that FA Invest took over the shareholding of one of Azercell's parent companies, and that a major in the Special State Guard Service – Hamzayev Rashad Firidunoglu – was appointed to represent FA Invest Malta at board meetings of Azercell's parent com- pany, Azertel. Linking Azercell to the Aliyev sisters is the fact that FA Invest purchased the 6.5% shareholding that Turkish company Cenay In- shaat held in Azercell; and that two Panamanian companies connected to the Aliyevas also purchased an- other Azercell shareholder, Cenay Iletishim. The two Panamanian companies, Dilsan Investments and Colville Group, have the same signatory – financier Olivier Mestelan – as do three other Panamian companies which hold the Aliyevas' 72% hold- ing in Azerfon. "That means two out of the top three companies are closely con- nected to the Aliyev family… the proven paper trail links the family to nearly three-quarters of the mobile market, a commercial dominance that raises serious questions about Internet surveillance and commu- nications security within Azerbai- jan," the OCCRP report stated. Leyla and Arzu Aliyeva alter- nate in the role of either president or treasurer of three Panama- nian companies, for which Olivier Mestelan acts as secretary. Meste- lan also signed the incorporation documents of two other Panamani- an companies – Dilsan Investments and Colville Group – which bought a 10.1% share of Azercell in 2005. Azercell was created in 1996, as a joint venture between the govern- ment and Turkish company Az- ertel. In 2005, Dilsan-Colville also bought out Azercell shareholder Cenay Iletishim, a Turksih com- pany, for US$6.6 million. Azerfon – controlled by the Ali- yev sisters – had held the 3G mo- nopoly until the end of 2011, while Azercell spent six years trying to get its own 3G licence. When it finally got its 3G licence, FA Invest Malta took over the 6.5% shareholding held by another Turkish company, Cenay Inshaat. The OCCRP report has illustrated the use of Malta's financial services as a hub for company structures that hide beneficial owners, or to pass on revenues to companies in low-tax regimes. In the past, names such as Nando's, Dyson, and the Commonwealth Bank of Australia made extensive use of Malta to ben- efit from tax rebates of up to 85%. Malta also has an important rela- tionship with the Azerbaijani gov- ernment through its upcoming gas plant that will use liquefied natural gas provided by state company SO- CAR. Leyla Aliyev herself brought to Malta a children's photography exhibition on behalf of the Heydar Aliyev Foundation, where she was toasted by President George Abela. SOCAR is part of the ElectroGas consortium supplying LNG to the new 250MW gas plant OCCRP investigation According to documents for the incorporation of FA Invest Malta, the company became a 6.5% shareholder in Turkish company Azertel, the parent company of Azerbaijani mobile phone provider Azercell after buying out a Turkish shareholder in Azertel. The OCCRP claims a major in the Special State Guard Service was appointed to represent FA Invest at Azertel board meetings. Right: The Aliyeva sisters Leyla (left) and Arzu, are connected to Panamanian companies through financier Olivier Mestelan, which also purchased a stake in another Turkish shareholder company, Cenay Iletishim, that owns 42.2% in Azertel, the owner of Azercell. A lion, lynx, pumas and jungle cats housed at the illegal zoo at Mon- tekristo Estate were moved to bigger homes within the same area, owners Polidano Group said yesterday. The the company's lawyer said "the transfer was carried out as per Poli- dano Group's commitment to offer the animals housed at Montekristo the best environment possible." Earlier this week, a number of NGOs called on MEPA and the Animal Welfare Department to take immediate action on Montekristo Estate and address all illegalities and outstanding animal welfare issues without further delay. The illegal construction of a zoo on construction magnate Charles Poli- dano's Montekristo Estates in Safi was halted by the Malta Environ- ment and Planning Authority two weeks ago on Friday. His company Polidano Bros was expected to face criminal charges, the Animal Rights Parliamentary Secretariat said last week. However, despite receiving a Caption Polidano's big cats moved to bigger housing