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Thursday, June 4, 1998

Argentine judge seeks United States IBM executives arrest 

Guillermo Haskel  
Buenos Aires, June 3: An Argentine judge on Tuesday signed international arrest warrants for four current and former IBM executives from the United States who refuse to testify in Argentina as suspects in his bribery investigation.

"It has been clearly stated that they do not want to come to Argentina. They are not complying with an order and anyone not complying with an order is brought by public force," federal judge Adolfo Bagnasco told journalists.

"I need them to testify in my investigation," he said, referring to International Business Machines executives Steve Lew and Peter Rowley and former executives Robeli Libero and Marcio Kaiser.

The judge had warned repeatedly that he would ask Interpol for their arrest if they did not come to Argentina or show willingness to do so by the end of May.

He has summoned them to testify as suspects on charges of fraud against the state and bribery and wants to hear their testimonies personally before deciding whether to indict them.

Bagnasco suspects bribeswere paid in 1993 to win a $250-million contract for IBM's Argentine unit to upgrade computers at the state-owned bank, Banco Nacion. He has indicted 20 ex-officials of Banco Nacion, IBM Argentina and the Argentine government.

IBM Argentina has denied any wrongdoing, although it has admitted to errors "inconsistent with company policy."

Bagnasco has said Thomas Snow, international affairs director of the US Department of Justice, has told him the four were only ready to give sworn testimony in the United States.

But in an interview with Reuters last month, Bagnasco said such testimony would have no legal value in Argentina because he was summoning them as suspects, not as witnesses.

"Their sworn testimony in the United States would be void, it has to be done under Argentine law. The crime was committed in Argentina, Argentine law was violated and the judge in charge is Argentine," he said.

"There are three possibilities: that the four had been deceived, or that they acted with negligence - in whichcase they would have committed no crime - or that they are accomplices," Bagnasco said.

Ricardo Martorana and Gustavo Soriani, former president and vice-president of IBM Argentina indicted by Bagnasco, say the four had the same participation as IBM Argentina officials.

At the heart of the probe are payments made to IBM's subcontractor CCR under a $37 million deal. Bagnasco believes part of that was paid in bribes he traced to bank accounts in Uruguay, the United States, Luxembourg and Switzerland.

Nacion cancelled the deal and sued IBM Argentina. IBM then countersued and they settled out of court. But an Argentine federal court has since rejected this deal.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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