Kazakhstan bribery case makes slow progress through US judicial system
| Publisher | EurasiaNet |
| Publication Date | 1 July 2003 |
| Cite as | EurasiaNet, Kazakhstan bribery case makes slow progress through US judicial system, 1 July 2003, available at: https://www.refworld.org/docid/46c58ef129.html [accessed 28 May 2023] |
| Disclaimer | This is not a UNHCR publication. UNHCR is not responsible for, nor does it necessarily endorse, its content. Any views expressed are solely those of the author or publisher and do not necessarily reflect those of UNHCR, the United Nations or its Member States. |
7/01/03
A bribery case involving two unnamed Kazakhstani officials is slowing winding its way through the US justice system. A lawyer for merchant banker James Giffen, who stands accused of arranging the bribes, has said the defendant has not sought a plea deal with prosecutors.
Giffen's counsel, William J. Schwartz of the New York law firm Kronish Lieb Weiner and Hellman confirmed that the case is currently in the discovery stage. He added that a pre-trial conference with prosecutors is scheduled for September 5. Schwartz said Giffen was not considering entering into a plea arrangement. "There's no plea deal in the works," Schwartz told EurasiaNet. Giffen has maintained his innocence since his arrest March 30.
According to official documents, Giffen's trial at US Federal Court, Southern District of New York is tentatively scheduled to begin in January 2004. Schwartz, however, indicated that pre-trial procedural moves by both the defense and prosecution could prompt a postponement of the start date.
Giffen, who is chairman of the New York based Mercator Corporation, was arraigned March 31 on two counts of violating the Foreign Corrupt Practices Act (FCPA). According to the indictment, Giffen allegedly funneled $78 million in fees from a deal between Mobil Oil Corp., now ExxonMobil, and the Kazakhstani government to two bank accounts controlled by top Kazakhstani officials. The indictment does not name the Kazakhstani leaders. [For background see the Eurasia Insight archive].
The Giffen indictment is part of a wider US corruption probe that is examining the dealings of oil conglomerates in Kazakhstan. Giffen reportedly served as an adviser to Kazakhstani president Nursultan Nazarbayev, and had close ties with Kazakhstani oil minister Nurlan Balgymbayev.
Interest in the Giffen case intensified after a former top Mobil executive agreed to a plea deal in a related criminal case. The former executive, J. Bryan Williams, who was indicted three days after Giffen, pleaded guilty June 12 to tax evasion charge after taking what prosecutors characterized as $7 million in kickbacks. [For background information see the Eurasia Insight archive].
Tom Cirigliano, a spokesman for ExxonMobil, denied Mobil was involved in any transgressions when it obtained a 25 percent stake in Kazakhstan's Tengiz oil field in 1996 for $1.05 billion. "Mobil has no knowledge of any illegal payments made to Kazakh officials by any current or former Mobil employees," Cirigliano said. "We also have no knowledge of any illegal payments received by any current or former Mobil employees."
Posted July 1, 2003 © Eurasianet
