At the meeting, the General Prosecutor, Ms. Gurbanbibi Atajanova listed a number of individuals who got involved in the major crime of corruption. She announced that among the leading individuals in large-scale corruption was Yolly Gurbanmuradov, Deputy Prime Minister for the oil and gas sector, which constitutes the main source of economic growth in Turkmenistan. Mr. Gurbanmuradov is accused of having misappropriated state funds for a number of years by blatantly abusing his high position in the government. As the prosecutor’s investigative report indicates, Mr. Gurbanmuradov embezzled state funds amounting to US$60 mln.

Among the leading Cabinet members, Mr. Gurbanmuradov has been a close associate of President Niyazov in many matters including building foreign economic relations with neighboring countries since independence. In this regard, he has been one of the longest serving Cabinet members under Niyazov’s presidency. Starting from 1993 till 2001, Mr. Gurbanmuradov held the position of Chief Director of the Foreign Economic Relations Bank of Turkmenistan and as deputy Prime Minister in the Cabinet since 2001.

While working as deputy Prime Minister, Mr. Gurbanmuradov is accused of working through front companies managed by his own associates for his and his relatives’ personal enrichment. As the General Prosecutor’s office reported, he opened a private company, “Gash”, by appointing a certain Mr. Nigmatulin at its head and unlawfully issued a US$600,000 loan indirectly to his own company. Mr. Gurbanmuradov is accused of buying luxurious apartments in Ashgabat for his relatives and wives as well. He is also accused of falsifying the true costs of planting trees in the vicinities of the grand 20,000 capacity mosque in Gypjak, the birthplace of President Niyazov. Instead of claiming US $62-65 for each tree imported, he indicated US $158 on top of the actual price. In addition, he has also been accused of polygamy, having three wives simultaneously – a crime under the civil code of Turkmenistan.

Appearing on state television, Mr. Gurbanmuradov confessed that he takes all the responsibility for the charges issued against him. Mr. Niyazov issued a decree replacing Mr. Gurbanmuradov with Guychnazar Tachnazarov as Deputy Chairman of the Cabinet of Ministers. In relation to the allegations against Gurbanmuradov, the President also dismissed Begmurat Gurbanmuradov, a relative of Yolly Gurbanmuradov and Mayor of the coastal town of Turkmenbashi. In addition, Mr. Niyazov accused the mayor of Ashgabat, Amangeldi Rejepov for neglecting the ongoing illegal distribution of apartments for Yolly Gurbanmuradov, his close relatives and charged him removal of three months of salary. The mayor, Amangeldi Rejepov, is now on probation to improve all the wrongdoings for his time in Ashgabat.

Mr. Niyazov ordered the General Prosecutor’s office to holed extensive investigations on Gurbanmuradov’s case and the circle of other individuals involved in it. This has created a somewhat twitchy situation among officials in other big cities of Turkmenistan as well. The meeting was broadcast on national television channels and for the first time exposed major factors of corruption among high state officials close to President Turkmenbashi. Making almost biannual large-scale changes in government positions is not new in Turkmenistan. But Yolly Gurbanmuradov’s case raised many questions. This major reshuffling is also viewed as a result of the internal power struggle in the Cabinet as the President Niyazov announced the possibility of presidential elections in 2008.