The Fraud Behind the Dispute
October 2, 1995 the National Bank of
Uzbekistan agreed to loan $8.1 million to Odil/Adil as prepayment for
wheat to be delivered in 1996 to Uzkhleboprodukt/Uzdon.
The loan was signed by NBU Chairman, Dr. Rustam Azimov, and
guaranteed by the Council of Ministers of Uzbekistan.
Odil/Adil never delivered this wheat and the money has apparently
also: Comments on Loan Agreement)
November 18, 1995 The Deputy Prime
Minister of Uzbekistan, Mr. Khamidov, gave written instructions to the
National Bank Chairman, Mr. Rustam Azimov, to accept railway reesters
(not original shipping documents) as proof of delivery for the wheat owed by
Odil/Adil, and to credit the outstanding loan account accordingly.
When wheat was delivered by Romak, railway reesters and falsified
customs declarations were prepared to make it appear that Romak’s delivery
had come from Odil/Adil.
October 24, 1996 Uzkhleboprodukt/Uzdon officially applied Romak’s wheat
delivery to Odil/Adil’s loan account.
On that same date Romak was sent a fax
by Uzkhleboprodukt/Uzdon with the following text: “CONCERNING OUR
CONTRACT FOR 50,000 MT KAZAK 3CL MILLING WHEAT.
DEAR SIRS. FURTHER TO
YOUR LETTER OF OCTOBER 11TH AND OUR RECENT DISCUSSIONS WE WISH TO
EXPRESS OUR REGRETS FOR THE FACT THAT DUE TO LATE ALLOCATION OF FUNDS THE
LETTER OF CREDIT FOR THIS BUSINESS HAS SOFAR NOT BEEN OPENED.
WE ARE DOING OUR BEST AND EXPECT TO CORRECT THIS SITUATION IN THE
NEAR FUTURE AS A RESULT OF WHICH OUR LETTER OF CREDIT SHOULD REACH YOU NOT
LATER THAN NOVEMBER 10TH 1996.
PLEASE EXCUSE THE INCONVENIENCE CAUSED.”
June 23, 1998, presumably as part of an attempted cover-up in Uzbekistan, The
Economic Court of Tashkent City issued a ruling (No. 1470-T-N) in a case
Uzkhleboprodukt had brought against Odil.
The ruling stated that Uzkhleboprodukt had turned to the court
because “Odil had not honored their payment obligations for the grain
delivered by Romak S.A.” The
Court decided that Romak had acted as an agent on behalf of Odil and that
payment should be settled between them as Odil had argued “without
participation of the State Bodies.” This
“conclusion” of the Court is the same argument rejected by the GAFTA
Arbitration Panel ten months earlier. The Court in Tashkent never contacted
Romak nor sought Romak’s participation or testimony.
In fact, Romak was never informed that this court proceeding was
taking place. Despite this, the name "Romak" appears 15
times in the court's 2 page ruling.
Despite this, the name "Romak" appears 15 times in the court's 2 page ruling.
Agreement No. 95/14 dated October 2, 1995 between National Bank of Uzbekistan,
Uzkhleboprodukt (Uzdonmakhsulot), Odil, and Galla-Bank
from the Deputy Prime Minister of Uzbekistan to the National Bank Chairman
of October 24, 1996 from Uzkhleboprodukt/Uzdon
of The Economic Court of Tashkent City