OCCRP: When the Country is a Business

The OCCRP investigation “When the Country is a Business”, dated 5 June 2018 and part of the “Tajikistan: Money by Marriage” series, examines how the Faroz conglomerate — controlled by President Emomali Rahmon’s son-in-law Shamsullo Sakhibov — grew into a dominant force across the Tajik economy. The report states that in 2017 over 600 high-tech diagnostic laboratories were installed at medical centres across Tajikistan as part of a partnership between the government and Faroz, and that Faroz operates in oil and gas, mining, customs terminals, driving schools, spas, a winter sports complex, a bank and other sectors. According to the report, President Rahmon regularly cuts ribbons and praises the company at unveilings, and Harriman Institute researcher Edward Lemon is quoted saying Tajikistan’s economy is dominated by businessmen linked to the presidential family who use their control over government agencies to “skew the market in their favor” and that “this corruption … pervades every level of the society and the economy.” The report states that 36-year-old Sakhibov became Faroz’s sole owner on paper in January 2018 after returning from the UK where he had worked as Tajikistan’s trade representative, and that records previously showed the company registered to his father Makhmadullo and brother Zainullo, though reporters found he had controlled it since wresting it from his partner in 2012. The report states that Faroz was founded in 2002 and initially focused on liquified gas and oil imports, operating a network of 50 stations and a pipeline to Afghanistan; in 2013 it established an “Association of Oil and Liquefied Gas Importers” which industry insiders said importers needed to be in good graces with to obtain licences. According to the report, Faroz now comprises more than 40 companies across trucking, pharmaceuticals, IT, mining, banking, steel and tourism, growing with government help through favourable laws, pressure on competitors and bargain-price sales of public assets. Reporters contacted Faroz, Sakhibov and the presidential administration for comment but received no response. Sources cited: OCCRP reporting, Tajik business registry, Edward Lemon (Harriman Institute), anonymous industry insiders.