Gaziev investigated over irregularities (268 words)

Published: 3/12/2001

Vilmir Gaziev, Bashkir Airlines (BAL) former General Director, has been arrested for fraud, following the Bashkir Government's audit commission charging the former manager with illegal activities relating to the time he spent as General Director, between October 1999 and September 2000. Local press reports indicate Gaziev's transgressions involve the following: · The purchase of three Tu-154Ms from the CSA for $9.4m, which Gaziev assured the Government (the provider of the finance) were serviceable for another 15 years. Auditors found the aircraft had all exceeded their operational life limits and could not be operated. The purchase is rumoured to have netted Gaviev $500,000. · Lease deals of BAL aircraft to Pakistan carrier, Pearh Aviation, suffered from late payments and led BAL into incurring substantial losses. Gaziev stands accused of allowing the relationship to continue, although all but $230,000 of its debts was finally paid, at the time of the audit commission's investigation. Gaziev has also been accused of taking bribes to allow the carrier to delay payment. · Illegal transfer of $3m to Moscow-based Aviacomplect and Magadan-based Volk, with no explanation of the reason for the payments. After the audit investigation Gaziev was fired. Documents were seized, which resulted in his recent arrest. Within BAL however, reports suggest that Gaziev may not be entirely to blame for the activities uncovered by the audit commission. There is a suggestion that a number of disgruntled former employees, fired by the General Director, may have endeavoured to ensure that Gaziev should take the blame for all the airline's long-term irregularities.

Article ID: 2410