My Travels: Baku, Azerbaijan

Overview:

Oil-rich Azerbaijan has redefined itself over the past two decades from a struggling newly independent state to a major regional energy player. Deals with international energy producers have allowed the country to use its energy revenues to create a government-run fund involved in international projects. It has also used its resources to rebuild its army, which is seen as a government priority as the country grapples with the breakaway territory of Nagorno-Karabakh. Despite its wealth and increased influence in the wider region, poverty and corruption continue to overshadow the country's development. A government crackdown on human rights advocates and journalists has raised concern that Azerbaijan's embryonic democracy is under threat. Ilham Aliyev took over as president from his father Heydar in 2003 and secured his latest term in 2018 in an election which Western observers said fell short of democratic standards.

Source: BBC Country Profile

OIG Team:

The inspection took place in between April 29 and May 16, 2014. Ambassador Carol van Voorst (team leader) former Ambassador to Iceland was previously deputy chief of mission in Vienna as well as Helsinki. In Washington, she directed several regional offices in the Bureau of European Affairs and was special assistant in the offices of the Deputy Secretary and the Under Secretary for Political Affairs. She received a Ph.D. and M.A. in history from Princeton University, and an M.A. in international security studies from the National War College. Laurent Charbonnet was the deputy team leader and had mainly POL/ECON assignments in East Asia. Paul Smith was originally slated to be the DTL but he had a family emergency. Ronda Capeles (MGMT) lead and a new MGMT inspector, Alexandra Vega, who was shadowing Ronda and me. Other inspectors were Robert Eckert (DS), Robyn Hinson-Jones (POL) took Laurent’s place, Michael Hurley (PD), Dolores Hylander (IT), Barry Langevin (DS), and Colwell Whitney (CON).

American Embassy Baku:

Baku was the first stop on a three-embassy trip, including Tbilisi and Yerevan that had the team out for over eight weeks. One of the perks for being out so long, since all three were hardship posts, was that after day 42 we were entitled to 20% post differential. Getting visas was challenging especially for Azerbaijan with having to fill out the forms by hand. Thank goodness for our Administrative Assistant Helen for making arrangements and the travel office. We could even copy the itinerary from Barry’s travel order so we each didn’t have to generate our travel orders from scratch. Speaking of travel, we were not allowed business class so we had to leave a day early on Sunday from Dulles to Baku and arrived Monday evening and took Tuesday as rest day. We stayed at the Marriott and the management inspectors walked to the embassy annex building about twenty minutes.

Map of the Caucasus: Baku, Azerbaijan on the Caspian Sea; Tbilisi, Georgia in the Caucasus with Black Sea coast; and, Land-locked Armenia with Capital Yerevan and disputed territory of Nagorno Karabakh.

Among the embassy staff was the Deputy Chief of Mission Dereck Hogan a young very impressive black man that went on to become Ambassador to Moldova and is now the PDAS in the EUR bureau. The Management Officer was Michael Dickerson who just happens to be back in Baku as DCM. I am not surprised since he ran a good shop. The FMO/HRO, Miriam “Elise” de Silva Tokamasu, was on her first tour and way over her head being expected to handle both portfolios. In fact, we recommended that EUR bureau authorize separate HRO and FMO be assigned particularly given the workload previous incidents of fraud. Since 2011 the embassy terminated five LE staff members for procurement and insurance fraud. OIG/INV received a Hotline Complaint to INV from an employee alleging harassment and misusing USG equipment and one of their experienced procurement agents was terminated for medical fraud.

After almost one year to the date, we received an email from Elise thanking us for all the advice and support we had provided. She bragged about implementing PAY.GOV; having salaries paid through the banking system (not cash) and EFT payments to vendors. She was even using the Post Support Unit, 34% of our vouchers. Elise is now the Management Officer in Suva and doing well. Receiving such feedback really makes our work worthwhile.

Findings:

The embassy's 100-year-old physical structure is in deplorable condition, despite the best efforts of a hard-working management section. The Government of Azerbaijan has repeatedly blocked embassy efforts to acquire a site for a new embassy compound. The embassy continues to pursue options vigorously. Given the high-fraud, cash-based local economy, the combined financial management and human resources officer position provides inadequate oversight of the embassy's financial operations. Therefore, we recommended that positions should be authorized.

Among the other recommendations Embassy Baku should:

Establish a mission temporary duty policy in accordance with Department of State guidelines.
Establish a telework policy and telework agreements for employees, as required.
Institute a post orientation program for newly hired locally employed staff.
Submit an updated hotel and restaurant report.
Update Equal Employment Opportunity postings
Maintain an accounts receivable for bills of collection.
Counseled embassy supervisors to approve any overtime in advance.

Highlights

Baku, capital of Azerbaijan, is a booming oil town on the shores of the Caspian Sea. Lots of tall new skyscrapers with a 3,000-year-old city. Surrounding countryside has pools of black oil, mud volcanoes, fire temples and gas flaming out of hillsides.