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Former Ukraine Prime Minister On Trial In California For Corruption

Mike Godfrey, Tax-news.com, New York

15 June 2000

The trial began this week in San Francisco of Pavel Lazarenko, former Prime Minister of Ukraine in 1996/97, on charges that he conspired to launder $114m which had been paid in the form of bribes by investors wanting to do business in his country.

Lazarenko has been held without bail, and also faces similar charges in Switzerland. At the hearing on Tuesday he pleaded not guilty to one count of conspiracy, seven counts of money laundering and 23 counts of transportation of stolen property. The conspiracy and laundering charges carry maximum sentences of 20 years, and the transportation charges 10 years each.

The ex-Prime Minister has claimed that the accusations were politically-motivated, and had been inspired by his enemies in Ukraine, including the President, Leonid Kuchma.

Whatever is the truth about Pavel Lazarenko, any businessman who has had dealings with Ukraine knows that unfortunately corruption is deeply ingrained in the administrative fabric of the country, and that a high proportion of public officials look at commercial situations first with a view to personal enrichment and only afterwards, if at all, with a view to the betterment of their country and its citizens.

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