INTERNATIONAL: Business

Twin Cities Posted on Sat, Apr. 05, 2003

Mobil part of bribery probe

U.S. federal prosecutors said Friday they are looking at Mobil Oil Corp. as part of the investigation into bribes paid by Americans to secure lucrative oil contracts in Kazakhstan. Assistant U.S. Attorney Peter Neiman made the disclosure as New York businessman James Giffen pleaded innocent to conspiracy, money laundering and tax charges. He is accused of extending more than $78 million in bribes in the 1990s to two senior Kazakh officials. Exxon Mobil of Irving, Texas, said the company has no knowledge of any illegal payments made to Kazakh officials by any current or former Mobil employees. On Wednesday, retired Mobil executive J. Bryan Williams was indicted on charges that he evaded taxes on a $2 million kickback he allegedly received for finalizing a 1996 deal between Mobil and Kazakhstan.

EU Bank chief likely to extend term

Wim Duisenberg looked certain Friday to extend his term as European Central Bank governor for at least three months while his designated successor seeks to extract himself from a French banking scandal. European Union finance ministers are likely to ask Duisenberg today to stay on beyond his scheduled July 9 retirement. Bank of France Governor Jean-Claude Trichet is being tried in Paris on fraud charges, complicating his position as ECB successor. The EU ministers, starting a two-day meeting, also focused on the potential impact of the Iraq war on Europe's already sluggish economy.

Russia accepts loan to combat AIDS

Russia accepted a $150 million World Bank loan to combat the rapid spread of AIDS and tuberculosis in the country, World Bank officials said Friday after four years of negotiations. The World Bank first offered the loan in 1999 but disagreements over bank rules delayed the project. Russia objected to World Bank rules requiring monitoring of patients receiving medication, the bank said. AIDS came relatively late to Russia but spread rapidly, primarily from intravenous drug abuse and a lack of prevention programs.

Venezuelan Central Bank rebuffs Chavez

Venezuela's Central Bank rejected President Hugo Chavez's demand that it impose fixed interest rates for private banks. The Central Bank won't accept "pressure from anyone" to impose rates, director Domingo Maza Zavala said. On Wednesday, Chavez demanded the Central Bank force private banks to lower their borrowing rates, which range from 25 percent to 40 percent. Chavez argued the high rates were hurting small businesses and the government, which faces $4.6 billion in domestic debt payments this year. Venezuela's domestic debt totals $9 billion.