.. a minimum of tens of millions of dollars. The
question is: Who received these commissions? Was this money
repatriated to the country in the form of dividends?"
Dubinin's vehement denials of FIMACO's involvement in the GKO market
are disingenuous. Close to half of all foreign investment in the
money-spinning market for Russian domestic bonds were placed through
FIMACO's nominal parent company, Eurobank and, possibly, through its
subsidiary, co-owned with FIMACO, Eurofinance Bank.
Nor is Dubinin more credible when he denies that profits and
commissions were accrued in FIMACO and then drained off. FIMACO's
investment management agreement with Eurobank, signed in 1993,
entitled it to 0.06 percent of the managed funds per quarter.
Even accepting the central banker's ludicrous insistence that the
balance never exceeded $1.4 billion - FIMACO would have earned $3.5
million per annum from management fees alone - investment profits
and brokerage fees notwithstanding. Even Eurobank's president at the
time, Andrei Movchan, conceded that FIMACO earned $1.7 million in
management fees.
The IMF insisted that the PwC reports exonerated all the
participants. It is, therefore, surprising and alarming to find that
the online copies of these documents, previously made available on
the IMF's Web site, were "Removed September 30, 1999 at the request
of PricewaterhouseCoopers".
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