[stop-imf] Ukraine: possible embezzlement of IMF funds

[soren@igc.org]

IMF says it will look into accusations of fraud charges in Ukraine
WASHINGTON, Jan 28 (AFP) - The International Monetary Fund plans to look
into allegations by a former Ukrainian prime minister that members of the
current administration diverted 613 million dollars in IMF money in 1997, a
Fund spokesman said here Friday.
The Financial Times earlier in the day reported that former prime minister
Pavlo Lazarenko was about to allege that some members of President Leonid
Kuchma's government have been involved in money laundering and embezzlement
schemes, including the improper investment of IMF funds in speculative
government bonds that carried interest rates of up to 66 percent.
"We take this report seriously," IMF spokesman Thomas Dawson told reporters.
"Those specific allegations are news to us. We will take a careful look at
it and we are in touch with the Ukrainian authorities."
Lazarenko is himself wanted in Switzerland on money laundering charges and
is currently in custody in the United States, according to the Financial
Times.
It said some 200 million dollars from the investment in government bonds are
alleged to have been deposited in Belgian and Swiss accounts of people close
to Kuchma.
Elsewhere in his remarks Friday, Dawson said another IMF mission to Ukraine
would be needed in February for negotiations on a possible loan of 2.6
billion dollars.
During a previous mission, according to Dawson, "we reached agreements on a
lot of issues" but further talks are needed on Ukraine's external debt.