Kasparov vs Ilyumzhinov: the FIDE Presidency battle begins

[Richard Bates]

Any coincidence that the new initiative of 'transparent' rapid publishing of ECF board minutes seems to have died a death as soon as it started...?

[Chris Rice]

Some very interesting legal action started by Andrew Paulson on the Spraggett site although you’ll need to skip past the lovely young lady before landing on “ChessGate” Btw he also is now running for Deputy President of the ECU.

http://kevinspraggettonchess.wordpress.com/

However, first I’d just like to come back to Andrew Paulson’s statement via Nick Faulkes (posted Jan 26 - 9.26pm)

“The disclosure of (stolen) confidential documents to the press by an ECF official, along with being against the law, constitutes an ethical violation under item 2.2.10 of the FIDE Code of Ethics as it may cause the English Chess Federation to appear in an unjustifiable and unfavorable light and in this way damage its reputation. This will be referred to the FIDE Ethics Commission for disciplinary action in the coming days.”

First of all, similar to the Kasparov-Leong memo leak to say it was “stolen” is incorrect. It may correct to say it was published without permission but it seems clear by Andrew Paulson’s own account that he sent it to Kasparov who I imagine emailed it to other interested parties or maybe just had it printed off. It is normal for companies when sending emails to put in some sort of legal wording such as for example “This email and any attachments are sent in confidence, subject to applicable legal privilege and upon the basis that the recipient will conduct appropriate virus checks. If you receive this email in error, please telephone us upon receipt: you are strictly prohibited from using, copying or disseminating it or any information contained in it, save to the intended recipient. Internet communications are not secure and xx Ltd. is not responsible for their abuse by third parties, nor for any alteration or corruption in transmission, nor for any damage or loss caused by any virus or other defects.” Was that done in this case?

In addition 2.2.10 of the FIDE Code of Ethics says “2.2.10 In addition, disciplinary action in accordance with this Code of Ethics will be taken in cases of occurrences which cause the game of chess, FIDE or its federations to appear in an unjustifiable unfavorable light and in this way damage its reputation.” I hope this isn’t some attempt to use the ECF’s financial resources to start a complaint here because I can’t see what the basis would be for saying he has been cast in an unfavourable light, given the draft memo is true and verified by Andrew Paulson himself.

The recent situation concerning the disclosure of confidential documents to The Sunday Times and a Canadian website by ECF’s FIDE Delegate Nigel Short must be considered inconsistent with his high position in the ECF. Thus, the question of Nigel Short’s removal will be raised before ECF Council in accordance with item A17(2) of the ECF Articles of Association. Nigel Short has today circulated to the press a draft Memorandum (a document stolen from my computer, received by Short from Garry Kasparov) and he has provided us with a rough translation from the Russian.

It would appear the evidence that Andrew Paulson is claiming for this is purely circumstantial because the legal letter to Mr Spraggett clearly demonstrates that Mr Paulson is not at all sure where the leak came from naming Gary Kasparov and Robert Fontaine as possible sources among others. Where’s the proof for this claim against Nigel Short because if this is not true that presumably Nigel Short has a case against Andrew Paulson.

He claims that this document proves that Kirsan Ilyumzhinov is a shareholder in AGON. I have repeatedly stated that this is false.

Agreed, it’s established that Andrew Paulson is the sole shareholder of Agon Ltd registered in Jersey, any contrary claim is, as he says, entirely false.

To the extent that the Memorandum was a draft, some of the terms were indeed carried forward in some form and some were abandoned. For example, in the end, AGON did engage Global Chess as a general contractor for event management, but for $7,500/month instead of $15,000/event. This restructuring was deemed logical, as there were 6 events in the 2013 schedule. Mr. Makropoulos, on the other hand, rejected out of hand the idea of consultants related in any way to FIDE receiving retainers. And, indeed, under a separate agreement my salary from AGON was agreed to be EUR240k/year, but I never took it. AGON is a private company and thus its accounts are private. Jersey was selected as a highly-regulated but tax-effective location. AGON’s income was international and such a jurisdiction is appropriate to avoid incurring unnecessary national taxes imposed by jurisdictions other than at income source. The fact that the audits of AGON are shown to Makropoulos and Freeman at all is unusual. Companies don't usually show their accounts to anyone other than shareholders and the taxman. However, in this case, under the Agreement, FIDE needs to be able to verify the revenue (because payments to FIDE are based on it) while AGON needs to maintain a reasonable level of confidentiality vis-a-vis its other counter-parties; we solved this issue by allowing two representatives of FIDE, bound by confidentiality, to audit the accounts. The contract is publicly available, was approved by the Presidential Board and ratified by the General Assembly of FIDE.

The reasons for setting up in Jersey raise no issues and are entirely acceptable. However, regarding not publishing the Agon Ltd accounts the situation is entirely unacceptable. No-one is asking Andrew Paulson to declare his personal net worth simply the Agon Ltd accounts relating to its dealings with FIDE. The reason given that Agon Ltd needs to maintain a reasonable level of confidentiality vis-a-vis its other counterparties seems a very weak one. Most respectable companies publish their accounts especially if they claim to be international players like Agon Ltd does. Who are the auditors for Agon Ltd, Mr Paulson speaks of? Are they independent or are they in fact Mr Makropoulos (Executive Director of FIDE) and Mr Freeman (FIDE Treasurer)? Are these two gentleman prepared to vouch for the Agon Ltd accounts, if so, where is that recorded in the FIDE Executive Board minutes? Where are FIDE’s dealings with Agon Ltd represented in their own accounts?

[Richard Bates]

The disclosure of (stolen) confidential documents to the press by an ECF official, along with being against the law, constitutes an ethical violation under item 2.2.10 of the FIDE Code of Ethics as it may cause the English Chess Federation to appear in an unjustifiable and unfavorable light and in this way damage its reputation. This will be referred to the FIDE Ethics Commission for disciplinary action in the coming days.”

Sounds to me that a referral of this nature should be taken by the ECF Board, rather than the ECF President acting unilaterally. Presumably a press release will shortly appear on the ECF website stating this to be the case...

Although of course i also imagine that, since it is explicitly stated that the ECF is the supposedly aggrieved party, most members of the ECF would prefer judgements on the matter to be dealt with internally (via ECF Council if necessary) rather than subcontracted to FIDE...

[JustinHorton]

It appears that bastion of probity that it is, the Streatham blog is not privileged enough to be on leaker's email lists.

Indeed not, though as It happens I do have a copy of the "leak" email.

For someone who wanted to build bridges with "disaffected actors", it has only taken a matter of months for the ECF President to fall out with one of the more influential English chess players of the last thirty years or more.

Not that it usually takes very long.

Some very interesting legal action started by Andrew Paulson on the Spraggett site although you’ll need to skip past the lovely young lady before landing on “ChessGate”

Althoug it is easy enough if you link to the indiviual piece rather than the blog itself.

[Carl Hibbard]

Although it is easy enough if you link to the individual piece rather than the blog itself.

The other interesting titbit was:

I am currently in the process of selling the company, as I am running for Deputy President of the European Chess Union and owning AGON would constitute a conflict of interest.

[Jonathan Bryant]

It appears that bastion of probity that it is, the Streatham blog is not privileged enough to be on leaker's email lists.

Indeed not, though as It happens I do have a copy of the "leak" email.

So it's only the Streatham Hill faction who are out of the loop? Bloody hell.



I'd be very Interested to hear AP's thoughts on 'conflict of interest' - when it applies/when it doesn't.

[Kevin Thurlow]

"I will no longer be discussing it in any forum or with any of you, pending court action. "

The first resort - he must be rattled.

Refuse to discuss anything, silence any critics, remove them from the scene, that's been done before, and it tends to not end up well.

[Roger de Coverly]

I am currently in the process of selling the company, as I am running for Deputy President of the European Chess Union and owning AGON would constitute a conflict of interest.

How is it that being owner of Agon and Deputy President of ECU is a conflict of interest whilst being President of the ECF and owner of Agon isn't?

[Roger de Coverly]

It would appear the evidence that Andrew Paulson is claiming for this is purely circumstantial because the legal letter to Mr Spraggett clearly demonstrates that Mr Paulson is not at all sure where the leak came from naming Gary Kasparov and Robert Fontaine as possible sources among others.

Isn't his case that Robert Fontaine has passed the draft agreement to the Kasparov campaign? It's always a problem when you fall out with ex-employees particularly if they know things you would rather not be made public.

[NickFaulks]

Nick Faulkes is hardly the "neutral" person he claims to be. As General Secretary of the Bermuda Chess Association, he is very closely acquainted with a key figure in the drama, Nigel Freeman

This typical insinuation turns out to be nothing more than an excuse for an attack on Nigel Freeman, who has been a personal friend for over 20 years. Nigel is well able to look after himself but, in case anyone other that Nigel Short doubts it, he and I are fully capable of disagreement on FIDE matters, even quite fundamental ones. The fact that we are both officers of the Bermuda Chess Association is a particularly red herring, since I do not think either of us regards this as a joint power base.

[Matthew Turner]

Roger de Cover ley wrote
"Isn't his case that Robert Fontaine has passed the draft agreement to the Kasparov campaign? It's always a problem when you fall out with ex-employees particularly if they know things you would rather not be made public."

That would seem to be the perfectly plausible chain of events put forward by Paulson. Interesting then that there is so much focus on Nigel Short, who would appear not to be the main protagonist. It appears to me that Paulson is beginning a process of trying to remove Short as the ECF's FIDE delegate. I cannot see how anything to date would achieve that objective, so it looks like there will be more to come.

[Roger de Coverly]

The fact that we are both officers of the Bermuda Chess Association is a particularly red herring, since I do not think either of us regards this as a joint power base.

Really? If you were Secretary of an English county chess association, you would likely be representing far more players but have no influence in FIDE.

[John McKenna]

you only need to have the full original email with all header info and to know how to read those info.

You might be right, Paolo, but I'm interested to know why you think so.

Not sure I understand the question. The best answer is have is that, based on the little I know about email systems, looking to the full headers of the original emails sent with the leaked document might provide some more info for the gossip on the whole story. What did you have in mind when asking that question?

JustinHorton>… as it happens I do have a copy of the "leak" email.<

Perhaps Justin would be kind enough to send Paolo a copy of the said email?

[JustinHorton]

I am currently in the process of selling the company, as I am running for Deputy President of the European Chess Union and owning AGON would constitute a conflict of interest.

How is it that being owner of Agon and Deputy President of ECU is a conflict of interest whilst being President of the ECF and owner of Agon isn't?

I'd speculate that the ECU is in a position to offer contracts in which AGON would be interested, whereas the ECF isn't. But who knows eh?

[Mick Norris]

Changes at the Russian Chess Federation
http://chess-news.ru/en/node/14573