DATE=8/31/1999
TYPE=BACKGROUND REPORT
TITLE=KREMLIN SCANDAL
NUMBER=5-44174
BYLINE=PETER HEINLEIN
DATELINE=MOSCOW
CONTENT=
VOICED AT:
INTRO: The Kremlin is attempting to battle back
against two separate sets of corruption allegations
making headlines in the Western press. The charges
have damaged Russia's international reputation and
raised questions about future aid and investment. But
as V-O-A Moscow correspondent Peter Heinlein reports,
average Russians see the twin scandals as little more
than "business as usual."
TEXT: First came an expose in an Italian newspaper
accusing senior Russian officials, including President
Boris Yeltsin and his two daughters, of taking
millions of dollars in kickbacks from a Swiss
contracting firm. That was followed by a "New York
Times" article alleging that as much as ten billion
dollars may have been laundered through accounts at
the Bank of New York since early last year.
/// Opt ///
The U-S magazine "Newsweek," citing unnamed United
States intelligence sources, reports that the C-I-A -
the Central Intelligence Agency - suspects that a
reputed Russian organized crime boss is involved in
the money laundering affair. In this week's edition,
"Newsweek" says members of Russia's political elite,
including former Prime Minister Victor Chernormyrdin
and former economics tsar (chief) Anatoly Chubais,
sought out the crime boss for his money-laundering
expertise.
The "Segodnya" newspaper, owned by anti-Kremlin media
baron Vladimir Gusinsky, followed up on the kickback
allegations. The paper carried a front-page interview
with a Russian investigator Tuesday saying he had
evidence that 90-percent of the published bribery
allegations were true.
/// End opt ///
But the Kremlin, clearly stung by the flurry of news
reports, has gone on the offensive, bringing out a
number of prominent figures to counter the charges.
Kremlin property manager Pavel Borodin, in a rare
interview with a French newspaper, said President
Yeltsin was convinced the media barrage was part of a
well-orchestrated plot against him.
Another Kremlin loyalist, oil baron Mikhail
Khodorkovsky, told a radio interviewer the money
laundering charges were both malicious and absurd.
/// KHODORKOVSKY ACT ///
He says, "All of Russian business is discredited
by these accusations, and now they are accusing
the entire country of being corrupt. Mr.
Khodorkovsky said the amount of money alleged to
have been laundered was equal to Russia's entire
oil export proceeds for that period. He called
that "an impossible situation."
/// OPT ///
Others who issued flat denials of the news reports
included Mr. Chernomyrdin and Mr. Chubais.
/// End opt ///
But experts and average Russians alike say despite the
denials, there is a ring of truth to the allegations.
Analyst Yevgeny Volk of the Moscow Heritage Foundation
says no Russian politician is immune to corruption
charges.
/// VOLK ACT ///
Everyone knows corruption has penetrated all
levels of power. So there is no news for common
people that money is laundered. It's common
knowledge and not so much a sensation as it
looks in the West.
/// END ACT /// /// BEGIN OPT ///
But Mr. Volk says there is little or no chance any of
the accused in the money laundering or bribe taking
scandals will ever face charges in Russia.
/// VOLK ACT ///
It is almost impossible to prove anything.
Russian people were very sophisticated in
concealing incomes throughout 70 years of
Communist, very tough totalitarian economics, so
it's quite easy for them to deceive the
Westerners who are much more naive in many
cases.
/// END ACT /// /// END OPT ///
A sampling of opinion on a Moscow street Tuesday found
Russians not surprised by the corruption charges,
and uniformly cynical about their politicians.
/// NIKOLAYEV ACT IN RUSSIAN, THEN FADE TO... ///
38-year old college professor Alla Nikolayeva says,
"All this is absolutely normal. Everything is a mess."
/// IVANOV ACT IN RUSSIAN, THEN FADE TO.. ///
52-year old economist Vasily Ivanov asks, "Is it
possible to trust them at all?" He adds, "This is not
a place where anyone can be trusted. I don't even
trust priests."
Experts say the money laundering and kickback charges
are just the opening shots (i.e. just the beginning)
in what promises to be an extremely ugly parliamentary
and presidential election season. Analyst Yevgeny Volk
said the elections are likely to be free, but not
fair, because those who have more money, including
criminals, will have a better chance than the others.
(Signed)
NEB/PFH/GE/KL
31-Aug-1999 13:35 PM EDT (31-Aug-1999 1735 UTC)
NNNN
Source: Voice of America
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