Former head of liquidated bank gets a jail term of 8½ years

6 months ago Web Desk 0

Jamshed Ziyoyev, ex-chairman of Tajprombank that collapsed under the weight of bad loans has got a lengthy jail term for embezzlement and fraud.

 

A court in Dushanbe’s Sino district sentenced Jamshed Ziyoyev to 8 years and six months in prison in early December.

 

The sentence followed his conviction on charges of embezzlement (Article 245 of Tajikistan’s Penal Code), fraud (Article 247), document forgery (Article 340) and abuse of authority by employees of commercial and other organizations (Article 295), Jamshed Zioyev’s relative told Asia-Plus on condition of anonymity.

 

Recall, Jamshed Ziyoyev was detained on April 24, 2018 and on May 18 the same year he was transferred to the pretrial detention facility.

 

Founded in October 1995 as an all-purpose retail bank, Tajprombank, with headquarters in Dushanbe, had 21 branches, 11 departments and 15 money-transfer offices across the country.  The controlling shares of the company were held by Jamshed Ziyoyev.

 

Assets on Tajprombank’s books included dozens of offices and an unspecified number of residential properties.

 

Signs the lender was in distress began to emerge in 2015.  In the middle of 2016, Ziyoyev was removed as head of the bank, which was placed under crisis administration.  In December the same year, the National Bank declared it was refinancing Tajprombank to the tune of 450 million somonis and reappointed Ziyoyev to his old job and ordered him to restore the lender to health.  The bailout money was raised through the emission of somoni-denominated sovereign bonds that were converted into liquid cash by the National Bank.

 

But then two months later, the National Bank performed yet another about-face and decided to shutter Tajprombank, together with another recipient of bailout funds, Fononbank.

 

Tajprombank reportedly had over the years accumulated a number of high-stakes delinquent debtors.

 

One such person, Jamshed Abdulov, a businessman involved in the cotton industry, was detained by authorities over unpaid debts, according to EurasiaNet.org.  Two companies belonging to him – Cotton Textile and Olim Textile – collectively owed Tajprombank 39 million somoni ($4.4 million).   After paying off his liabilities in the form of solid assets, Abdulov was reportedly released on bail.

 

EurasiaNet.org says sources familiar with the situation have told that companies affiliated to Ziyoyev and his son owed another $13 million to the bank.

 

Tajprombank reportedly also has liabilities before the state — $13 million with the Finance Ministry and another $15 million with the National Bank.  Under Tajik law, the bank is required to settle its debts to the state before it pays out retail customers.

 

By ruling handed down by Dushanbe Economic Court the bank liquidation process began in March 2018.  Assets on Tajprombank’s books have been estimated at 450 million somonis and the total amount of the bank liabilities reportedly amounted to some 550 million somonis.

 

In 2019, Jamshed Ziyoyev returned 100 million somonis (equivalent to some 10 million U.S. dollars) in a form of property.  This money was supposed to go to pay off debts to depositors.

 

Source: Asia Plus