Tajikistan Ruling Family Profits from Connections
New Article:
The mandatory registration of mobile devices in Tajikistan has raised concerns about potential corruption and financial benefit for private companies linked to the ruling family. Since October 2023, all mobile phones and tablets brought into the country must be registered within 30 days, with a fee of 50 somoni (around $4.5) per device.
An investigation by RFE/RL’s Tajik Service found that the exclusive rights to run the registration process were granted to a private firm connected to associates of the president’s son, Rustam Emomali. The ultimate beneficiary of this agreement is a Tajik conglomerate called Avesto Group, which has ties to the ruling elite of the country.
Avesto Group, through its subsidiaries Net Solutions and Dushanbe City Bank, has benefited financially from the mandatory IMEI registration process. While the exact financial details are not publicly disclosed, it is estimated that fees totaling over $2 million were collected in the first nine months after the regulation was implemented.
Critics of the system argue that the fees collected from the registration process should be transferred to the state budget if the main goal is security. There are concerns about lack of transparency in the tender process and how contracts are awarded in Tajikistan, with connections to powerful individuals playing a significant role.
In addition to the IMEI registration, Avesto Group’s subsidiaries have also secured contracts for other profitable projects, including traffic violation cameras and electric vehicle charging stations. The state budget receives only half of the penalty fees collected from traffic violation cases, with the remaining going to the Avesto Group subsidiaries.
The government has granted Avesto Group exceptional rights, including the ability to transfer net income to offshore accounts. This has raised further questions about accountability and transparency in the awarding of lucrative government contracts in Tajikistan.
Overall, the IMEI registration system in Tajikistan has highlighted issues of potential corruption and financial benefit for private companies with ties to the ruling family. Critics are calling for more transparency and accountability in how government contracts are awarded and how fees collected are utilized for the benefit of the country.
