DATE=3/23/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-247030
TITLE=RUSSIA / CORRUPTION (L-ONLY)
BYLINE=EVE CONANT
DATELINE=MOSCOW
CONTENT=
VOICED AT:
INTRO: RUSSIAN PROSECUTORS HAVE BEEN SEARCHING KREMLIN OFFICES
FOR EVIDENCE IN A CORRUPTION INVESTIGATION. V-O-A'S EVE CONANT
REPORTS FROM MOSCOW ON THE LATEST ROUND OF A HIGH-PROFILE BATTLE
BETWEEN PRESIDENT YELTSIN'S OFFICE AND THE COUNTRY'S CHIEF
PROSECUTOR.
TEXT: A SPOKESMAN FOR RUSSIA'S PROSECUTOR GENERAL CONFIRMED
(TUESDAY) THAT DOCUMENTS HAVE BEEN TAKEN FROM PRESIDENT YELTSIN'S
OFFICE. THE SEARCH IS PART OF AN INVESTIGATION INTO THE
OPERATIONS OF A SWISS COMPANY, MABETEX, WHICH HAS WON LUCRATIVE
CONTRACTS FROM THE KREMLIN TO RENOVATE OFFICIAL BUILDINGS IN
RUSSIA.
LAST WEEK, THE BATTLE BETWEEN PROSECUTOR GENERAL YURI SKURATOV
AND THE KREMLIN BROKE INTO THE OPEN WHEN RUSSIA'S UPPER HOUSE OF
PARLIAMENT REFUSED TO ACCEPT MR. SKURATOV'S RESIGNATION. MR.
SKURATOV SAID HE OFFERED TO QUIT AFTER PEOPLE HE WAS
INVESTIGATING TRIED TO BLACKMAIL HIM. MR. SKURATOV HAS NOW
RESUMED HIS INVESTIGATION, AND VOWS TO ROOT OUT HIGH-LEVEL
CORRUPTION DESPITE A POLITICAL AND SEXUAL SCANDAL SURROUNDING
HIM.
REPORTS SAY HIS INVESTIGATION IS NOT LIKELY TO TOUCH PRESIDENT
YELTSIN DIRECTLY. BUT MR. YELTSIN'S FAMILY, AND OFFICIALS CLOSE
TO THE PRESIDENT, COULD BE QUESTIONED ABOUT THEIR RELATIONS WITH
THE SWISS CONTRACTING FIRM.
MABETEX PROJECTS INCLUDE A KREMLIN RENOVATION COSTING NEARLY
170-MILLION DOLLARS. PAVEL BORODIN, ADMINISTRATIVE HEAD OF THE
KREMLIN'S EMPIRE OF COUNTRY RESIDENCES, AIRCRAFT AND HOTELS, SAYS
THERE IS NO WRONG-DOING (IN THE RELATIONSHIP BETWEEN PRESIDENT
YELTSIN AND MABETEX).
/// BORODIN ACT IN RUSSIAN, ESTABLISH AND FADE UNDER ///
LET THEM CHECK, SAYS MR. BORODIN, "WE ARE ALWAYS CHECKED BY THE
FINANCE AND TAX MINISTRIES." BUT HE ASKS WHY INVESTIGATORS
SUDDENLY GAVE THIS INFORMATION TO THE MEDIA.
A MABETEX REPRESENTATIVE FLEW TO MOSCOW (TUESDAY) TO ISSUE A
STRONG DENIAL OF ANY IMPROPER ACTIVITY, INCLUDING CLAIMS THAT THE
SWISS COMPANY BUILT A COUNTRY RESIDENCE FOR PRESIDENT YELTSIN'S
DAUGHTER AND PURCHASED TWO YACHTS FOR MR. YELTSIN (IN AN EFFORT
TO CURRY FAVOR FOR FUTURE PROJECTS). MABETEX IS THREATENING TO
SUE RUSSIA'S CHIEF PROSECUTOR IF HE PURSUES THE CASE.
/// REST OPT ///
THE MABETEX DENIAL COINCIDED WITH A VISIT TO MOSCOW OF SWISS
ATTORNEY GENERAL CARLA DEL PONTE. SHE IS DISCUSSING THE MABETEX
CASE WITH PROSECUTOR GENERAL SKURATOV. (SIGNED)
NEB/EC/JWH/WTW
23-Mar-99 10:48 AM EST (1548 UTC)
NNNN
Source: Voice of America
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