22001: (Hermantin)Miami-Herald-Haiti investigating alleged corruption under Aristide ru (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: leonie hermantin <lhermantin@hotmail.com>

Posted on Fri, May. 21, 2004

GOVERNMENT

Posted on Fri, May. 21, 2004

GOVERNMENT

Haiti investigating alleged corruption under Aristide rule
Haitian leaders said corruption probes of the Aristide administration focus
on nine cases, including deals involving phone firms, Taiwanese aid and a
Miami lobbyist.
By JACQUELINE CHARLES
jcharles@herald.com

PORT-AU-PRINCE -- Haiti's new government is investigating nine allegations
of corruption and mismanagement by the Aristide administration, from suspect
long-distance telephone contracts to misuse of government funds.

The government will also probe the Aristide government's contract with Miami
lawyer Ira Kurzban, a lobbyist for Haiti, said Finance Minister Henri Bazin
and Central Bank chief Raymond Magloire.

''We will be looking into all the scandals and misuse of government money .
. . those things that were illegal and violated procedure,'' Bazin told The
Herald. ``We're looking into corruption and mismanagement, both.''

Interim Prime Minister Gerard Latortue recently tasked the Central Bank,
government ministries and agencies to look into the nine allegations against
officials and supporters of the government of former President Jean-Bertrand
Aristide.

The allegations, mostly from Aristide opponents and independent businessmen,
emerged during his rule but gained momentum after he resigned Feb. 29 amid a
bloody revolt.

Government and Central Bank officials admit it will be an uphill struggle
because of their lack of experience in such investigations, the involvement
of private companies whose true owners are unknown, and government ledgers
so messy that it might be impossible to trace who received money and why.

Bazin said the government may hire a foreign forensic accounting firm such
as Kroll Inc., hired in the mid-1980s to track the Duvalier family
dictatorship's wealth.

Latortue told The Herald that Washington and European countries are also
helping track down foreign bank accounts that may be held by Aristide, his
wife Mildred, relatives and supporters. He declined to elaborate.

U.S. prosecutors in Miami are investigating Aristide's alleged links to drug
traffickers and reports that Aristide relatives hold about $250 million in
European banks, federal sources told The Herald last month.

Magloire said a preliminary review of Central Bank accounts showed no
looting of government funds in the days leading up to Aristide's
resignation.

But Magloire and Bazin said there are other allegations to investigate.

One of the key investigations will focus on a half-dozen small, U.S.-based
long-distance telephone companies that have suspect deals with Haiti's
government-owned Teleco.

The deals, which allegedly involved commissions paid to Aristide government
officials, gave Teleco far less of the income from the foreign calls than it
should have received, Central Bank officials said.

''It was a significant amount of money, millions a month, not coming in,''
Magloire said.

But he acknowledged that proving corruption will be difficult because
Teleco's ledgers were so badly kept that a credible financial audit is
impossible.

Senior government officials said they will also investigate complaints that
Aristide persuaded Taiwan, Haiti's largest aid donor, to divert some of its
aid from the government to two Aristide-controlled private foundations that
carry out social welfare programs.

Three Haitians told The Herald that Taiwanese Embassy officials in
Port-au-Prince had acknowledged to them that Aristide requested the
diversion. They asked for anonymity out of fear of reprisals.

Wang-Der Chi, chargé d'affaires at Taiwan's embassy in Haiti, said his
government never gave money directly to the two foundations -- La Fanmi
Selavi and its successor, the Aristide Foundation.

`IRREGULARITIES'

Magloire also said an initial sweep of government payments handled by the
Central Bank turned up strong indications of massive overbilling and large
commissions paid to Aristide supporters, but he offered no details.

''When we make a more extensive investigation we hope any blatant
irregularities will show up,'' he added.

Also to be investigated are special franchises issued to Aristide supporters
to import rice free of duty, and government funds paid to the Aristide
foundations and armed pro-Artistide thugs known as chimres.

Magloire said his investigators are also looking into the Haitian
government's contract with Kurzban, an Aristide supporter registered in
Washington as a lobbyist for Haiti.

Magloire said that although the Aristide government's contract with Kurzban
required him to represent the Central Bank and Teleco, ``he never did any
work for either. He was working for the president.''

Kurzban, in fact, represented Teleco in a dispute over telecommunications
giant MCI's debt to Teleco, said MCI attorney Robert Sink. He declined to
say how much MCI ended up paying Teleco.

''It is completely untrue that I did not represent all of the clients who I
was retained to represent. And, in fact, I did substantial work for all of
the clients,'' Kurzban told The Herald, declining to elaborate, citing
attorney-client privilege.

''The efforts of the puppet, U.S.-installed government in Haiti to denigrate
President Aristide's name by making false and scandalous accusations will
ultimately be found to be untrue,'' Kurzban said.

NO WITCH HUNTS

Justice Minister Bernard Gousse said he wants the nine investigations to
move legally and with caution to avoid charges by Aristide supporters that
the interim government is engaging in a politically inspired witch hunt.

''We don't want to move on political motivation,'' Gousse said.

But Bazin, the finance minister, said that it's high time to clean up
Haiti's corruption. He cited a report last year by European-based
Transparency International that ranked Haiti as one of the world's most
corrupt countries.

Bazin said he also plans to establish an anti-corruption commission to
investigate future allegations and prosecute those involved.

''Something has to be remedied. We cannot go on like that,'' he said. 'It is
bad for the moral fabric of our society . . . It's taxpayers' money that is
being looted. We want to make sure no such things happen again.''






Haitian leaders said corruption probes of the Aristide administration focus
on nine cases, including deals involving phone firms, Taiwanese aid and a
Miami lobbyist.
By JACQUELINE CHARLES
jcharles@herald.com

PORT-AU-PRINCE -- Haiti's new government is investigating nine allegations
of corruption and mismanagement by the Aristide administration, from suspect
long-distance telephone contracts to misuse of government funds.

The government will also probe the Aristide government's contract with Miami
lawyer Ira Kurzban, a lobbyist for Haiti, said Finance Minister Henri Bazin
and Central Bank chief Raymond Magloire.

''We will be looking into all the scandals and misuse of government money .
. . those things that were illegal and violated procedure,'' Bazin told The
Herald. ``We're looking into corruption and mismanagement, both.''

Interim Prime Minister Gerard Latortue recently tasked the Central Bank,
government ministries and agencies to look into the nine allegations against
officials and supporters of the government of former President Jean-Bertrand
Aristide.

The allegations, mostly from Aristide opponents and independent businessmen,
emerged during his rule but gained momentum after he resigned Feb. 29 amid a
bloody revolt.

Government and Central Bank officials admit it will be an uphill struggle
because of their lack of experience in such investigations, the involvement
of private companies whose true owners are unknown, and government ledgers
so messy that it might be impossible to trace who received money and why.

Bazin said the government may hire a foreign forensic accounting firm such
as Kroll Inc., hired in the mid-1980s to track the Duvalier family
dictatorship's wealth.

Latortue told The Herald that Washington and European countries are also
helping track down foreign bank accounts that may be held by Aristide, his
wife Mildred, relatives and supporters. He declined to elaborate.

U.S. prosecutors in Miami are investigating Aristide's alleged links to drug
traffickers and reports that Aristide relatives hold about $250 million in
European banks, federal sources told The Herald last month.

Magloire said a preliminary review of Central Bank accounts showed no
looting of government funds in the days leading up to Aristide's
resignation.

But Magloire and Bazin said there are other allegations to investigate.

One of the key investigations will focus on a half-dozen small, U.S.-based
long-distance telephone companies that have suspect deals with Haiti's
government-owned Teleco.

The deals, which allegedly involved commissions paid to Aristide government
officials, gave Teleco far less of the income from the foreign calls than it
should have received, Central Bank officials said.

''It was a significant amount of money, millions a month, not coming in,''
Magloire said.

But he acknowledged that proving corruption will be difficult because
Teleco's ledgers were so badly kept that a credible financial audit is
impossible.

Senior government officials said they will also investigate complaints that
Aristide persuaded Taiwan, Haiti's largest aid donor, to divert some of its
aid from the government to two Aristide-controlled private foundations that
carry out social welfare programs.

Three Haitians told The Herald that Taiwanese Embassy officials in
Port-au-Prince had acknowledged to them that Aristide requested the
diversion. They asked for anonymity out of fear of reprisals.

Wang-Der Chi, chargé d'affaires at Taiwan's embassy in Haiti, said his
government never gave money directly to the two foundations -- La Fanmi
Selavi and its successor, the Aristide Foundation.

`IRREGULARITIES'

Magloire also said an initial sweep of government payments handled by the
Central Bank turned up strong indications of massive overbilling and large
commissions paid to Aristide supporters, but he offered no details.

''When we make a more extensive investigation we hope any blatant
irregularities will show up,'' he added.

Also to be investigated are special franchises issued to Aristide supporters
to import rice free of duty, and government funds paid to the Aristide
foundations and armed pro-Artistide thugs known as chimres.

Magloire said his investigators are also looking into the Haitian
government's contract with Kurzban, an Aristide supporter registered in
Washington as a lobbyist for Haiti.

Magloire said that although the Aristide government's contract with Kurzban
required him to represent the Central Bank and Teleco, ``he never did any
work for either. He was working for the president.''

Kurzban, in fact, represented Teleco in a dispute over telecommunications
giant MCI's debt to Teleco, said MCI attorney Robert Sink. He declined to
say how much MCI ended up paying Teleco.

''It is completely untrue that I did not represent all of the clients who I
was retained to represent. And, in fact, I did substantial work for all of
the clients,'' Kurzban told The Herald, declining to elaborate, citing
attorney-client privilege.

''The efforts of the puppet, U.S.-installed government in Haiti to denigrate
President Aristide's name by making false and scandalous accusations will
ultimately be found to be untrue,'' Kurzban said.

NO WITCH HUNTS

Justice Minister Bernard Gousse said he wants the nine investigations to
move legally and with caution to avoid charges by Aristide supporters that
the interim government is engaging in a politically inspired witch hunt.

''We don't want to move on political motivation,'' Gousse said.

But Bazin, the finance minister, said that it's high time to clean up
Haiti's corruption. He cited a report last year by European-based
Transparency International that ranked Haiti as one of the world's most
corrupt countries.

Bazin said he also plans to establish an anti-corruption commission to
investigate future allegations and prosecute those involved.

''Something has to be remedied. We cannot go on like that,'' he said. 'It is
bad for the moral fabric of our society . . . It's taxpayers' money that is
being looted. We want to make sure no such things happen again.''

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