The Kazakh government frequently trumpets its reformist character, while the West lauds the resource-rich country as a great place to do business. However, embedding oneself in Kazakhstan, with its institutional wobbliness, is certainly risky, as the case of a former telecommunications executive reveals. The details of—or rather the lack of an objective rationale for—Mark Seidenfeld’s prison time and subsequent journey through the courts illustrate the urgent need for increased transparency, judicial system reform, and basic respect for the rule of law in Kazakhstan.
On Sunday, August 26th, 2007, journalist Steve LeVine reported on his blog that the American telecommunications executive was free to leave the country (pending receipt of authorizing papers), after spending 10 months in prison in Russian Siberia and an additional 6 months in a Kazakh prison following his extradition. He had been acquitted of his alleged crimes but remained in prison until higher courts upheld his acquittal. As detailed in an April 2007 IHT report:
...in November 2006, he returned to Almaty bruised and exhausted after a three-week journey from Siberia in a Russian prison train, extradited from Siberia after a 10-month imprisonment there.
The Kazakhstan authorities had issued an arrest warrant for Seidenfeld after a Kazakh citizen accused him of siphoning $40,000 from his Almaty company, pocketing funds meant to buy a piece of machinery.
After a series of postponements, preliminary hearings for Seidenfeld's criminal trial were delayed again last week for at least another month for translation of court documents.
An assessment in February by the Almaty office of the accounting firm PricewaterhouseCoopers and provided to The New York Times found that the equipment that Seidenfeld is accused of falsely listing on company books was located in the company's offices.
The narrative of the Seidenfeld case demonstrate the pitfalls of traversing the Kazakh judicial system, its corruption, its lack of independence from business interests, and the troubling coziness between Kazakhstan and Russia. It was hoped that democratic governance would gradually assert itself in Central Asia after the break-up of the Soviet Union, but of late, authoritarian governments have seemed to remain quite comfortable.
In the 2006 Countries at the Crossroads report, analyst Martha Brill Olcott discussed the conflicts created by the intersection of Kazakh state power and private economic interests. Seidenfeld’s case starkly illustrates these conflicts. In Kazakhstan, and indeed in much of Central Asia, states routinely quash openings when individuals demand transparency—as Seidenfeld did with the privatization of his telecommunications firm—and demonstrate a tendency to side with local business interests when they run counter to those of outsiders, or even when they appear to undermine generally accepted legal principles. “Kazakhstan has shown a repeated failure to untangle private interests from public policy that makes it virtually impossible to objectively evaluate these sorts of cases,” notes Chris Walker, Freedom House’s Director of Studies. In countries where the rule of law is strong, justice is the end, due process is the means, and cases do not begin with the premise that those arrested are guilty, awaiting sentencing, until proven innocent. Ultimately, Seidenfeld will leave the country, his ordeal largely for naught. Kazakhstan’s indigenous elite interests hijacked this case until they got what they wanted. The treatment of Seidenfeld, a business leader, will leave a mark on the image of the country; however, rather than serving as a pioneer in his efforts towards greater transparency, he will serve as a symbol of the capriciousness of the government.