Russia probes fate of 1998 IMF loan

MOSCOW - Russian prosecutors are still investigating what happened to a $4.8 billion IMF loan received in 1998 that some claim may have been laundered through a New York bank, the head of the Russian parliament&#39;s audit agency said. <br> <br> ``This work is not finished,&#39;&#39; Sergei Stepashin, an ex-prime minister who now heads the State Duma&#39;s Audit Chamber, said Saturday on Russia&#39;s state-controlled Mayak radio. ``The sum remains very serious. It&#39;s more than $4 billion that we cannot seem to find.&#39;&#39; <br> <br> He predicted that the investigation by the Russian Prosecutor-General&#39;s office would be complete this year. Russian investigators have not commented publicly on the case. <br> <br> Stepashin also said Audit Chamber investigations revealed financial violations by government officials at the time the International Monetary Fund loans were received in 1998 - just months before Russia defaulted on tens of billions of dollars in debt and plunged into financial crisis. Stepashin gave no details of the violations. <br> <br> The IMF has said that an audit showed Russia lied to the fund about financial activity in 1996, but it found no evidence that the fund&#39;s loans were misused or involved in alleged corruption and money laundering. <br> <br> The audit came after U.S. federal prosecutors alleged in 1999 that the Bank of New York had served as a conduit for $7 billion in Russian money. Some reports alleged the funds included IMF loans.

http://accesswdun.com/article/2002/4/195710