DATE=6/2/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-233241
TITLE=RUSSIA / CORRUPTION (L-ONLY)
BYLINE=MAXIM KNIAZKOV
DATELINE=WASHINGTON
CONTENT=
VOICED AT:
INTRO: A LEADING RUSSIAN PARLIAMENTARY-APPOINTED AUDITOR SAYS
FOREIGN AID PROVIDED TO RUSSIA IS BEING STOLEN ON A MASSIVE
SCALE. VENIAMIN SOKOLOV PAINTED A GRIM PICTURE OF RUSSIA'S
PERVASIVE CORRUPTION AS WESTERN LEADERS PONDER NEW ASSISTANCE TO
RUSSIA. V-O-A'S MAXIM KNIAZKOV HAS THE REPORT.
TEXT: LAST YEAR, THE RUSSIAN CHAMBER OF ACCOUNTS, WHERE MR.
SOKOLOV IS A DIRECTOR, CONDUCTED 15-HUNDRED AUDITS. MANY OF
THEM TARGETED LOANS AND ASSISTANCE PROGRAMS PROVIDED TO RUSSIA BY
LENDING INSTITUTIONS SUCH AS THE WORLD BANK AND THE INTERNATIONAL
MONETARY FUND.
SPEAKING TUESDAY IN WASHINGTON THROUGH AN INTERPRETER, MR.
SOKOLOV SAID BILLIONS OF DOLLARS IN FOREIGN ASSISTANCE SO FAR
HAVE FAILED TO HELP THE RUSSIAN ECONOMY. AND HE EXPLAINED WHY.
// ACT ONE SOKOLOV/INTERPRETER //
THE FACT IS THAT ALL LOANS THAT HAVE BEEN GIVEN TO
RUSSIA SO FAR -- AND I REPEAT ALL LOAN -- HAVE ONLY
OPERATED IN THE SPHERE OF FINANCIAL SPECULATION AND HAD
ABSOLUTELY NO EFFECT ON ECONOMIC LIFE WHATSOEVER IN
RUSSIA.
// END ACT //
LEAFING THROUGH A STACK OF DOCUMENTS, MR. SOKOLOV GAVE SPECIFIC
EXAMPLES OF FOREIGN AID SINKING INTO THE BLACK HOLE OF RUSSIAN
CORRUPTION.
HE MENTIONED A 31-MILLION-DOLLAR WORLD BANK PACKAGE DISBURSED IN
1993 TO COMPENSATE RUSSIAN VICTIMS OF BANK FRAUD AND PYRAMID
SCHEMES.
// ACT TWO SOKOLOV/INTERPRETER //
NOT ONE DOLLAR OF THAT SUM HAD EVER REACHED THE HANDS OF
ONE SAVINGS ACCOUNT HOLDER THAT HAS LOST HIS OR HER
SAVINGS.
// END ACT //
INSTEAD, SAYS MR. SOKOLOV, RUSSIAN PROGRAM MANAGERS USED PART OF
THE MONEY TO INCORPORATE TWO FIRMS IN THE U-S STATE OF DELAWARE.
THE FIRMS, CREATED IN 1996, PAY SALARIES TO SEVERAL PEOPLE AND
HAVE INVESTED PART OF THE MONEY INTO THE RUSSIAN STOCK MARKET.
MR. SOKOLOV SAYS THE FIRMS ALSO PAID ONE OF THEIR AMERICAN
CONSULTANTS OVER 200-THOUSAND DOLLARS FOR SERVICES THAT STILL
REMAIN A MYSTERY TO RUSSIAN AUDITORS.
MR. SOKOLOV WENT ON TO TELL WHAT HAPPENED TO ANOTHER PORTION OF
WORLD BANK ASSISTANCE AS IT REACHED RUSSIA.
// ACT THREE SOKOLOV/INTERPRETER //
SEVEN MILLION DOLLARS FROM THE SAME 31-MILLION-DOLLAR
SUM WENT TO CREATE A (RESEARCH) INSTITUTE IN MOSCOW.
THIS INSTITUTE HAD 11 PEOPLE ON ITS STAFF. OUR AUDIT
WAS NOT ABLE TO REVEAL THAT THIS INSTITUTE EVER DID
ANYTHING.
// END ACT //
THESE AND OTHER MR. SOKOLOV'S REVELATIONS, PUBLICIZED OVER THE
PAST FEW DAYS IN THE AMERICAN PRESS, COME AT AN AWKWARD TIME FOR
THE CLINTON ADMINISTRATION. THE ADMINISTRATION HAS JUST
RECOMMENDED THAT THE I-M-F RELEASE A 670-MILLION-DOLLAR PORTION
OF AN EARLIER APPROVED LOAN TO SHORE UP RUSSIA'S BATTERED
FINANCES. PRESIDENT CLINTON SAYS HE IS READY TO CONSIDER
ADDITIONAL AID BUT MR. CLINTON'S CONGRESSIONAL OPPONENTS
SUGGEST RUSSIA MUST GET ITS HOUSE IN ORDER -- BEFORE IT CAN COUNT
ON ANY FURTHER INFUSIONS OF CASH. (SIGNED)
NEB/MAX/PT
02-Jun-98 9:15 PM EDT (0115 UTC)
NNNN
Source: Voice of America
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