DATE=2/25/99 TYPE=BACKGROUND REPORT NUMBER=5-42704 TITLE=RUSSIA CORRUPTION - PART ONE BYLINE=PETER HEINLEIN DATELINE=MOSCOW CONTENT= VOICED AT: INTRO: RUSSIA'S INTERIOR MINISTRY SAYS 18-THOUSAND PUBLIC OFFICIALS WERE DETAINED LAST YEAR ON CORRUPTION CHARGES. DURING THE SAME PERIOD, 14 RUSSIAN GENERALS WERE SENT TO JAIL FOR FINANCIAL OFFENSES AND ABUSE OF POWER. A RECENT INTERNATIONAL SURVEY LISTED RUSSIA AS ONE OF THE WORLD'S FIVE MOST CORRUPT COUNTRIES. (IN THIS FIRST OF A TWO PART SERIES,) V-O-A MOSCOW CORRESPONDENT PETER HEINLEIN REPORTS LIFE IN RUSSIA NOW OFTEN IMITATES THE MOVIES WHICH IMITATE LIFE. TEXT: /// SOUNDS OF SHOOTING - FADE UNDER /// THIS RUSSIAN MOVIE CALLED "THE CLASSIC" IS A TALE OF LIFE IN RUSSIA'S CRIMINAL UNDERWORLD. IN ONE SCENE, GANG MEMBERS ATTEMPT TO BRIBE POLICE WHO HAVE STOPPED THEIR CAR. /// MOVIE DIALOGUE - FADE UNDER /// THE HERO, A GANG LEADER, TELLS A POLICEMAN, LOOK, COMMANDER, WE ARE NOT CHILDREN. LET'S AGREE ON A PRICE. SUCH SCENES ARE CERTAINLY NO DIFFERENT THAN WHAT HOLLYWOOD PRODUCES. BUT IN RUSSIA, INCIDENTS LIKE THIS ALSO ARE AN EVERYDAY PART OF REAL LIFE. CRIME AND CORRUPTION ARE NOTHING NEW HERE. THE EARLY 19TH CENTURY HISTORIAN NIKOLAI KARAMZIN, WHEN ASKED TO SUM UP IN ONE WORD THE PEOPLE'S CHARACTER, REPLIED, "THEY STEAL." THAT BELIEF HAS BEEN REINFORCED IN THE POST-SOVIET ERA, AS CRIMINAL GANGS MOVED INTO ALMOST EVERY AREA OF ECONOMIC OPPORTUNITY. SYNDICATED JOURNALIST MASHA GESSEN NOTES THAT, WITH RUSSIA'S RECENT ECONOMIC TURMOIL, TRADITIONAL MAFIA GROUPS ARE ENCOUNTERING FIERCE NEW COMPETITION FROM THE GOVERNMENT ITSELF. /// GESSEN ACT /// WHAT'S FUNNY IS THAT THE CRISIS MIRRORS WHAT'S HAPPENING IN THE COUNTRY AT LARGE. THE INFORMAL MAFIA, THE CRIMINAL MAFIA, IS BEING PUSHED OUT BY THE LAW ENFORCEMENT MAFIA. SO THE PROTECTION RACKETS THAT WERE PRIVATELY RUN ARE NOW BEING RUN BY LAW ENFORCEMENT STRUCTURES. /// END ACT /// ANALYST GEORGY SATAROV, THE CO-AUTHOR OF A RECENT STUDY TITLED "WHO'S WHO IN RUSSIAN CORRUPTION," SAYS OFFICIAL THEFT COSTS THE GOVERNMENT 20-BILLION DOLLARS A YEAR, A FIGURE ALMOST EQUAL TO THE ENTIRE FEDERAL BUDGET. /// SATAROV ACT - IN RUSSIAN - FADE TO TRANSLATION /// THERE WAS A CHECK BY THE PROSECUTOR'S OFFICE AT ONE CUSTOMS POINT WHERE ALCOHOL AND TOBACCO PRODUCTS ARE IMPORTED. IT SHOWED THAT IN TWO MONTHS, FROM THE BRIBES THAT CUSTOMS INSPECTORS TOOK, THE UNDERPAYMENT OF DUTIES WAS 150-MILLION DOLLARS. THAT IS JUST TWO MONTHS AT ONE CUSTOMS CHECKPOINT. /// END ACT /// MR. SATAROV SAYS CORRUPTION IS EVERYWHERE, FROM THE TOP LEVELS OF GOVERNMENT ALL THE WAY DOWN TO THE POLICE OFFICER ON THE STREET. /// 2ND SATAROV ACT - IN RUSSIAN - FADE TO TRANSLATION /// IF A PERSON HAS NO RESPECT FOR THE LAW, HE JUST BREAKS IT. TO AVOID RISK, YOU HAVE TO PAY FOR IT. SO IN YOUR CAR, WITH YOUR DOCUMENTS, YOU KEEP A BILL. IT IS A PRECAUTIONARY PAYMENT TO BE ABLE TO BREAK THE LAW. AND BOTH SIDES UNDERSTAND THIS. IF THE GOVERNMENT OPPRESSES THE PEOPLE, THE PEOPLE HAVE TO BUY THE GOVERNMENT. /// END ACT /// RUSSIA'S ACTING PROSECUTOR GENERAL YURI CHAIKA RECENTLY COMPLAINED THAT COURTS HAVE BEEN TOO GENTLE WITH CORRUPT OFFICIALS. BUT MANY WONDER JUST HOW TOUGH THE CHIEF PROSECUTOR, OR ANY OTHER OFFICIAL, CAN BE IN A COUNTRY WHERE CORRUPTION PERVADES EVERY LEVEL OF GOVERNMENT. GENERAL CHAIKA'S COMMENTS CAME ON HIS SECOND DAY ON THE JOB. HIS PREDECESSOR, FORMER PROSECUTOR GENERAL YURI SKURATOV SUDDENLY RESIGNED THIS MONTH, OSTENSIBLY ON GROUNDS OF POOR HEALTH. MR. SKURATOV IS 47-YEARS OLD, WITH NO PREVIOUS HISTORY OF ILLNESS. THE PROSECUTOR QUIT ONE DAY AFTER HIS OFFICE OPENED A CRIMINAL CASE AGAINST RUSSIA'S BIGGEST CARMAKER, AVTOVAZ. AVTOVAZ HAS CLOSE TIES WITH CONTROVERSIAL BUSINESS TYCOON BORIS BEREZOVSKY, WHO HAS LONG BOASTED OF HIS INFLUENCE WITHIN THE KREMLIN, AND HIS CLOSE TIES WITH TATYANA DYACHENKO, THE POWERFUL DAUGHTER OF PRESIDENT BORIS YELTSIN. (SIGNED) NEB/PFH/JWH 25-Feb-99 9:43 AM EST (1443 UTC) NNNN Source: Voice of America .