A crooked alliance in the war on terror?
But if the family businesses were making money off the state, they truly encountered a bonanza when the U.S. air base opened in 2002, according to sources involved in Kyrgyzstan and the negotiations, and records obtained by NBC News.
Fuel subcontracts draw attention
Two companies owned by the president’s relatives received $120 million in military fuel subcontracts, according to the prime contractor. The two companies were Aalam Services, which was controlled by President Akaev 's son-in-law, according to the FBI records, and Manas International, which was widely known to belong to Akaev's son, Aider Akaev.
“Tens of millions of dollars were paid by our Pentagon into businesses that were controlled by the President of Kyrgyzstan and his family,” says Horton.
Aslund says ownership of Manas and Aalam was common knowledge. Neither company could be reached for comment.
The first contractor that the Pentagon hired to provide fuel in Kyrgyzstan says it notified military officials of the link between the president's family and Aalam and Manas.
Later, in 2002, when the Pentagon had a competitive bidding selection to choose a new contractor, a company named Red Star Enterprises won. It received a total of more than $240 million over the next several years, and tells NBC News it paid $120 million to the two firms.
In an e-mail to NBC News, a company official said: “These companies were used because DESC [the defense agency handling fuel contracts] directed all bidders to use them since they were the only registered companies to provide services.”
‘Tulip Revolution’
In March 2005, Akaev was ousted from power in an uprising now known as the “Tulip Revolution.” And that is when all the alleged corruption started to unravel. The new Kyrgyz government argued that the state treasury received little if any direct benefit from U.S. funds. A Pentagon spokesman says that the U.S. paid a yearly total of $2.7 million in fees at the airport.
The Pentagon says any corruption was not its fault.
“We are aware of the allegations of the current Kyrgyz government,” said Lt. Col. Joe Carpenter in a statement to NBC News referring to the allegations, “that former Kyrgyz regime leadership may have misappropriated funds from U.S. payments for goods or services,” and added any “misappropriation of funds is an internal Kyrgyz matter. All DoD contracts for goods and services in Kyrgyzstan were negotiated in accordance with U.S. laws and DoD contracting regulations.”
The Pentagon says it is helping the Kyrgyz government investigate, by providing U.S. documents.
The Kyrgyz could use the help, because in a strange twist, there were several U.S. connections to both Manas and Aalam. Both firms had bank accounts in the U.S., according to the FBI, and the banks reported that “Manas and Aalam are tied to transactions with arms traffickers, Politically Exposed Persons (PEPs) and a myriad of suspicious U.S. shell companies associated with the Akaev Organization.”
The FBI refused to confirm whether there is an ongoing investigation into the Akaev matter, citing a policy of not confirming or denying investigations.
Akaev is living in Moscow, and refused to comment for this story, or answer questions. Asked for comment, Galina Scripkina, who identified herself as Akaev's attorney, said she could not answer questions concerning him.
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