Identifier
Created
Classification
Origin
07TASHKENT1264
2007-07-10 11:26:00
CONFIDENTIAL
Embassy Tashkent
Cable title:
TAX AUTHORITIES SEIZE REMAINING MERCY CORPS ASSETS
how-toVZCZCXRO8080 PP RUEHDBU DE RUEHNT #1264 1911126 ZNY CCCCC ZZH P 101126Z JUL 07 FM AMEMBASSY TASHKENT TO RUEHC/SECSTATE WASHDC PRIORITY 8103 INFO RUEHAH/AMEMBASSY ASHGABAT 3124 RUEHTA/AMEMBASSY ASTANA 9263 RUEHEK/AMEMBASSY BISHKEK 3737 RUEHDBU/AMEMBASSY DUSHANBE 3599
C O N F I D E N T I A L TASHKENT 001264
SIPDIS
SIPDIS
E.O. 12958: DECL: 07/10/2017
TAGS: PGOV EAID UZ
SUBJECT: TAX AUTHORITIES SEIZE REMAINING MERCY CORPS ASSETS
REF: A. TASHKENT 515 AND PREVIOUS
B. TASHKENT 1151
Classified By: CDA Brad Hanson for reasons 1.4 (b) and (d).
C O N F I D E N T I A L TASHKENT 001264
SIPDIS
SIPDIS
E.O. 12958: DECL: 07/10/2017
TAGS: PGOV EAID UZ
SUBJECT: TAX AUTHORITIES SEIZE REMAINING MERCY CORPS ASSETS
REF: A. TASHKENT 515 AND PREVIOUS
B. TASHKENT 1151
Classified By: CDA Brad Hanson for reasons 1.4 (b) and (d).
1. (C) Mercy Corps' remaining assets have been seized by
Uzbek tax authorities to partially satisfy financial
penalties imposed on the organization for alleged violations
of Uzbek law (ref A). Igor Pakan, ABN-AMRO Bank Uzbekistan
Country Representative, told Charge July 10 that the tax
authorities presented a court order directing the bank to
breach Mercy Corps' time deposit account and transfer funds
from this account to the Uzbek treasury. (Comment: Mercy
Corps had transferred virtually all of its cash assets held
in Uzbek soum to this deposit account to protect them from
immediate seizure when tax authorities froze the
organization's regular bank account in late 2006. To the
best of our knowledge, there was no USG money in this
account. End Comment.) Pakan said that ABN-AMRO disregarded
the court order for several weeks to protect its client's
assets as long as possible. The bank complied, however,
after being warned by the General Prosecutor's Office that
both ABN-AMRO and its Tashkent management team would face
criminal prosecution if the funds were not transferred.
Pakan said that the transfer, totaling about 700 million soum
($560,000),was made on July 1.
2. (C) Comment: Mercy Corps' case has now reached its logical
conclusion with the only real surprise being that it took the
tax authorities so long to seize the time deposit account.
The organization lost its final appeal several months ago,
and has since closed its Tashkent office and departed the
country. Absent the agreement in principle on USG
microfinance assistance funds (ref B),the Foundation for
International Community Assistance's (FINCA) time deposit
account, also held by ABN-AMRO, probably would suffer a
similar fate.
HANSON
SIPDIS
SIPDIS
E.O. 12958: DECL: 07/10/2017
TAGS: PGOV EAID UZ
SUBJECT: TAX AUTHORITIES SEIZE REMAINING MERCY CORPS ASSETS
REF: A. TASHKENT 515 AND PREVIOUS
B. TASHKENT 1151
Classified By: CDA Brad Hanson for reasons 1.4 (b) and (d).
1. (C) Mercy Corps' remaining assets have been seized by
Uzbek tax authorities to partially satisfy financial
penalties imposed on the organization for alleged violations
of Uzbek law (ref A). Igor Pakan, ABN-AMRO Bank Uzbekistan
Country Representative, told Charge July 10 that the tax
authorities presented a court order directing the bank to
breach Mercy Corps' time deposit account and transfer funds
from this account to the Uzbek treasury. (Comment: Mercy
Corps had transferred virtually all of its cash assets held
in Uzbek soum to this deposit account to protect them from
immediate seizure when tax authorities froze the
organization's regular bank account in late 2006. To the
best of our knowledge, there was no USG money in this
account. End Comment.) Pakan said that ABN-AMRO disregarded
the court order for several weeks to protect its client's
assets as long as possible. The bank complied, however,
after being warned by the General Prosecutor's Office that
both ABN-AMRO and its Tashkent management team would face
criminal prosecution if the funds were not transferred.
Pakan said that the transfer, totaling about 700 million soum
($560,000),was made on July 1.
2. (C) Comment: Mercy Corps' case has now reached its logical
conclusion with the only real surprise being that it took the
tax authorities so long to seize the time deposit account.
The organization lost its final appeal several months ago,
and has since closed its Tashkent office and departed the
country. Absent the agreement in principle on USG
microfinance assistance funds (ref B),the Foundation for
International Community Assistance's (FINCA) time deposit
account, also held by ABN-AMRO, probably would suffer a
similar fate.
HANSON