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The Czech press leapt on the story after Mr Wallis's indictment in July. Newspapers and fuelled it with a daily diet of "revelations", allegations Klaus blasted the press for peddling "an evil invention by enemies of the post [reforml that Mr Kozeny had As privatisation proceeds bought information from Mr Wallis as "absurd". A hastily convened parliamentary committee determined that the secret service did not compile information on the private lives ofpoliticians.

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Mr Wallis, it concluded, must have been gathering such information under his own initiative. A public inquiry into the matter was ruled out, on the grounds that the work of the secret service must remain secret. Yet several uncomfortable facts remain.

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Mr Wallis maintains that he sold Mr Kozenv theinformationatthelatter'srequest. Mr Kozeny admits paying Mr Wallis, but claims that he was blackmailed into doing so.

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Mr Wallis, he says, threatened to make damaging revelations about his own private life and business affairs. The relationship between the two ended when Mr Kozeny told what was then the Czechoslovak interior ministry that a secret-service agent was blackmailing him. In a pre-arranged sting, Mr Wallis was arrested as Mr Kozeny handed himkoruna. The charges against Mr Wallis do not, in the event, include blackmail.

  1. В день передачи помощники Накамуры помогли ему затянуться потуже, чтобы произвести грозное впечатление.
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Mr Kozeny, the main prosecution witness, faces no charges himself. That could change, however. Miroslav Krizenecky, thechiefmilitary prosecutor, told Lidove Novint, a Czech newspaper, that HC84C "took actions according to the information [supplied by Mr Wallis] and invested.

Asked whether charges might be brought against him, the prosecutor said that everything depended on the outcome of the trial.

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Mr Kozeny attracts a curious mixture of admiration and resentment in Prague. It is generally accepted that HC8,C's promise of a ten-fold return on vouchers entrusted to it for investment in privatised companies, backed by heavy advertising, got the voucher-privatisation scheme moving-not least because rival investment funds were obliged to make competing offers.

Yet Mr Kozeny is also resented. That independence may prove a problem if invtstors rush to grab the returns on their investments. That would send shock-waves through the Prague stock exchange.


It could also affect the second round of voucher privatisation. When registration for this found, which includes about companies with a combined book value of billion koruna,endedon December 8th, 5. From December 15th they will choose whether to invest their vouchers themselves or to place them in one of investment funds, which are again advertising heavily.

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Some funds are offering investors loans in return for their vouchers. HC8 C is running full-page advertisements claiming that 1, korunaworth ofvouchers invested with the fund in round one the winter of was esenta de argan crema anti-imbatranire 34, koruna on November 18th.

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It will be a while yet before some semblance of the truth about Wa! The trial will be held in camera, tms belgium allure anti aging outside observers. Moreover, the current systemofCzechnilitaryjusticewillbeabolished on December 31st. The court will therefore have little more than ten working days to consider the case. Such a delay would do little to dampen speculation surrounding the case-or the growing perception among Czechs that corruption is widespread in their newly-cap­ FINANCE to date have caused aflight to "perceived quality," according to one foreign banker, and lenders on tms belgium allure anti aging interbank market are steering clear ofbanks known to be strug­ F EVTING a banking licence in the given until June 30th to furnish the cN -'s gling.


This may explain the efforts by the G Czech Republic used to be as easy as supervisory department with a page Czech parliament's budget committee to falling offa log. No longer. The collapse of audited report detailing every aspect of push through an amendment to the bank­ three Czech banks, including two of the their operations.

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Banka, in the first five month, of this year ofthe exercise. For the cN 1,however, the Inabidto.

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  • Therefore we have an equivalent momentum of: I e

Bankers were getic," says Martin Svehia, a cNB official. This iscurrently hap­ Czechered ing legislation to increase the powers of pening to Kreditni a Prumyslova Banka. NB to take control of troubled banks, which collapsed in February. And there isa sting in the central bank's 8.

A323 Final

Four foreign banks which have ap­ 9". The bank failures fail.

How kind.