“How to Apply PtP to Stolen or Stranded Assets” by Aaron Bornstein and Lester M. Salamon

FOR IMMEDIATE RELEASE Contact: Chelsea Newhouse According to a recent UN report, close to US$4 trillion is stolen from governments or generated by bribes or other forms of corruption each year in countries around the world—an annual sum well above the total budgets of numerous developing and transition country governments. Despite often heroic efforts, however, the record of successful discovery, confiscation, and effective return for social re-use of these vast assets has been frustratingly meager. This limited success in returning such assets for effective social re-use is largely due to the complexity of the process. Also at work, however, is that so much of the attention has had to focus on the challenges of locating, documenting, freezing, and confiscating stolen assets that too little attention has been available to focus on the all-important question of what to do with these assets if and when they become available for potential return. The document being released today seeks to remedy this shortcoming by focusing on one of the most promising of the social re-use and return options available. This is the option exemplified by the case of the BOTA Foundation in Kazakhstan, and by close to 600 other foundations that have...

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NEWS RELEASE | The BOTA Foundation: A Model for the Safe Return of Stolen Assets?

FOR IMMEDIATE RELEASE Contact: Chelsea Newhouse     We are pleased to announce the publication of The BOTA Foundation: A Model for the Safe Return of Stolen Assets?, the first in a series of reports from the Philanthropication thru Privatization Project (PtP) examining important examples of significant charitable endowments that have resulted from the sale or other transformation of government-owned or -controlled assets.   Prepared by international development specialist Aaron Bornstein and edited with an Introduction by PtP Project Director and Johns Hopkins University Professor Dr. Lester M. Salamon, this report analyzes the major example to date of the application of the PtP concept to stolen or disputed assets: the case of the BOTA Foundation in Kazakhstan, which arose from the seizure of assets totaling US$84 million that an American citizen secured from U.S. oil companies in the 1990s and channeled to high level officials in the Government of Kazakhstan in order to secure oil drilling rights in the Caspian Sea.   As such, it profiles one of over 550 charitable foundations that have emerged from some type of transaction transforming a government-owned or government-controlled asset into a charitable foundation. In the process, it helps point the way to...

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