By Steven Lee Myers
The New York Times
THURSDAY, SEPTEMBER 15, 2005
KIEV: In the last weeks of Leonid Kuchma's scandal-tarred presidency, an American company reached an agreement with his government to take control of a state-owned chemical factory in eastern Ukraine under terms that have been criticized as secretive and suspiciously generous.
On Sept. 2, dozens of men dressed in camouflage and body armor stormed and seized the headquarters of the factory, the Severodonetsk Azot Association. They were accompanied by officials of a new government, carrying an order signed by a minister under Kuchma's successor, Viktor Yushchenko.
The order was based on a court case filed by a fictitious company, on behalf of a politician who stood to gain from the seizure, according to a senior government official.
"It was a very serious abuse of the system," said the chairwoman of the country's State Property Fund, Valentyna Semeniuk.
The accumulated weight of scandal and internal rifts has destroyed the political coalition that Yushchenko formed to challenge Kuchma's government and create a newly democratic, corruption-free government. It has also raised questions about the true success of what came to be known as the Orange Revolution, as members of Yushchenko's team volley accusations of abuse of power, bribery and other forms of corruption.
"Corruption exists in different countries, but in civilized countries there is prompt action against it," said Oleksandr Zinchenko, Yushchenko's chief of staff, who resigned, coincidentally, on the same day that the company was seized. Three days later he went public with accusations of corruption among Yushchenko's senior aides.
Zinchenko's resignation provoked a political firestorm here that shows little sign of subsiding.
Last week Yushchenko dismissed his prime minister and the rest of her government, as well as the head of the customs service. He also suspended or accepted the resignation of several members of his staff who are at the center of Zinchenko's accusations.
Even so he has defended his aides, much as Kuchma called accusations against his own aides politically motivated. "There is an anecdote," Yushchenko said Monday. "It does not really matter whether a man has a daughter or does not have a daughter. It is enough to say in public that his daughter does not behave herself well."
That has not stopped him, however, from accusing the departed prime minister, Yulia Tymoshenko, of corruption herself. After first striking a conciliatory note after her dismissal, Yushchenko accused her of siphoning $1.6 billion from the budget "in favor of private undertakings," coercing judges and improperly intervening in a dispute over a steel factory, Nikopol Ferroalloy Plant.
Yushchenko appointed a new prime minister, Yury Yekhanurov, and has since rallied political parties, including some that he opposed only a year ago, to form a sort of unity cabinet. He also created a commission to investigate corruption in his inner circle, but gave it only 10 days - until next week - to say whether the charges warrant further investigation.
Reports of bribery and corruption have swirled around Yushchenko's circle from the time of his inauguration in January.
"Corruption is in the air," Tymoshenko, who was one of the most impassioned and popular leaders of last year's protests, said in an interview, citing complaints of businessmen forced to pay bribes to members of Yushchenko's administration. "This is the air we had to breathe."
A senior Western diplomat said he gave credence to reports that Yushchenko's aides had solicited payments for access to the president, for appointments to government positions, to influence court cases and to win control over state enterprises.
"I think he is vulnerable, because of his loyalty, to the bad behavior of those around him," the diplomat said of Yushchenko, speaking on condition of anonymity because of diplomatic protocol.
KIEV: In the last weeks of Leonid Kuchma's scandal-tarred presidency, an American company reached an agreement with his government to take control of a state-owned chemical factory in eastern Ukraine under terms that have been criticized as secretive and suspiciously generous.
On Sept. 2, dozens of men dressed in camouflage and body armor stormed and seized the headquarters of the factory, the Severodonetsk Azot Association. They were accompanied by officials of a new government, carrying an order signed by a minister under Kuchma's successor, Viktor Yushchenko.
The order was based on a court case filed by a fictitious company, on behalf of a politician who stood to gain from the seizure, according to a senior government official.
"It was a very serious abuse of the system," said the chairwoman of the country's State Property Fund, Valentyna Semeniuk.
The accumulated weight of scandal and internal rifts has destroyed the political coalition that Yushchenko formed to challenge Kuchma's government and create a newly democratic, corruption-free government. It has also raised questions about the true success of what came to be known as the Orange Revolution, as members of Yushchenko's team volley accusations of abuse of power, bribery and other forms of corruption.
"Corruption exists in different countries, but in civilized countries there is prompt action against it," said Oleksandr Zinchenko, Yushchenko's chief of staff, who resigned, coincidentally, on the same day that the company was seized. Three days later he went public with accusations of corruption among Yushchenko's senior aides.
Zinchenko's resignation provoked a political firestorm here that shows little sign of subsiding.
Last week Yushchenko dismissed his prime minister and the rest of her government, as well as the head of the customs service. He also suspended or accepted the resignation of several members of his staff who are at the center of Zinchenko's accusations.
Even so he has defended his aides, much as Kuchma called accusations against his own aides politically motivated. "There is an anecdote," Yushchenko said Monday. "It does not really matter whether a man has a daughter or does not have a daughter. It is enough to say in public that his daughter does not behave herself well."
That has not stopped him, however, from accusing the departed prime minister, Yulia Tymoshenko, of corruption herself. After first striking a conciliatory note after her dismissal, Yushchenko accused her of siphoning $1.6 billion from the budget "in favor of private undertakings," coercing judges and improperly intervening in a dispute over a steel factory, Nikopol Ferroalloy Plant.
Yushchenko appointed a new prime minister, Yury Yekhanurov, and has since rallied political parties, including some that he opposed only a year ago, to form a sort of unity cabinet. He also created a commission to investigate corruption in his inner circle, but gave it only 10 days - until next week - to say whether the charges warrant further investigation.
Reports of bribery and corruption have swirled around Yushchenko's circle from the time of his inauguration in January.
"Corruption is in the air," Tymoshenko, who was one of the most impassioned and popular leaders of last year's protests, said in an interview, citing complaints of businessmen forced to pay bribes to members of Yushchenko's administration. "This is the air we had to breathe."
A senior Western diplomat said he gave credence to reports that Yushchenko's aides had solicited payments for access to the president, for appointments to government positions, to influence court cases and to win control over state enterprises.
"I think he is vulnerable, because of his loyalty, to the bad behavior of those around him," the diplomat said of Yushchenko, speaking on condition of anonymity because of diplomatic protocol.
KIEV: In the last weeks of Leonid Kuchma's scandal-tarred presidency, an American company reached an agreement with his government to take control of a state-owned chemical factory in eastern Ukraine under terms that have been criticized as secretive and suspiciously generous.
On Sept. 2, dozens of men dressed in camouflage and body armor stormed and seized the headquarters of the factory, the Severodonetsk Azot Association. They were accompanied by officials of a new government, carrying an order signed by a minister under Kuchma's successor, Viktor Yushchenko.
The order was based on a court case filed by a fictitious company, on behalf of a politician who stood to gain from the seizure, according to a senior government official.
"It was a very serious abuse of the system," said the chairwoman of the country's State Property Fund, Valentyna Semeniuk.
The accumulated weight of scandal and internal rifts has destroyed the political coalition that Yushchenko formed to challenge Kuchma's government and create a newly democratic, corruption-free government. It has also raised questions about the true success of what came to be known as the Orange Revolution, as members of Yushchenko's team volley accusations of abuse of power, bribery and other forms of corruption.
"Corruption exists in different countries, but in civilized countries there is prompt action against it," said Oleksandr Zinchenko, Yushchenko's chief of staff, who resigned, coincidentally, on the same day that the company was seized. Three days later he went public with accusations of corruption among Yushchenko's senior aides.
Zinchenko's resignation provoked a political firestorm here that shows little sign of subsiding.
Last week Yushchenko dismissed his prime minister and the rest of her government, as well as the head of the customs service. He also suspended or accepted the resignation of several members of his staff who are at the center of Zinchenko's accusations.
Even so he has defended his aides, much as Kuchma called accusations against his own aides politically motivated. "There is an anecdote," Yushchenko said Monday. "It does not really matter whether a man has a daughter or does not have a daughter. It is enough to say in public that his daughter does not behave herself well."
That has not stopped him, however, from accusing the departed prime minister, Yulia Tymoshenko, of corruption herself. After first striking a conciliatory note after her dismissal, Yushchenko accused her of siphoning $1.6 billion from the budget "in favor of private undertakings," coercing judges and improperly intervening in a dispute over a steel factory, Nikopol Ferroalloy Plant.
Yushchenko appointed a new prime minister, Yury Yekhanurov, and has since rallied political parties, including some that he opposed only a year ago, to form a sort of unity cabinet. He also created a commission to investigate corruption in his inner circle, but gave it only 10 days - until next week - to say whether the charges warrant further investigation.
Reports of bribery and corruption have swirled around Yushchenko's circle from the time of his inauguration in January.
"Corruption is in the air," Tymoshenko, who was one of the most impassioned and popular leaders of last year's protests, said in an interview, citing complaints of businessmen forced to pay bribes to members of Yushchenko's administration. "This is the air we had to breathe."
A senior Western diplomat said he gave credence to reports that Yushchenko's aides had solicited payments for access to the president, for appointments to government positions, to influence court cases and to win control over state enterprises.
"I think he is vulnerable, because of his loyalty, to the bad behavior of those around him," the diplomat said of Yushchenko, speaking on condition of anonymity because of diplomatic protocol.
KIEV: In the last weeks of Leonid Kuchma's scandal-tarred presidency, an American company reached an agreement with his government to take control of a state-owned chemical factory in eastern Ukraine under terms that have been criticized as secretive and suspiciously generous.
On Sept. 2, dozens of men dressed in camouflage and body armor stormed and seized the headquarters of the factory, the Severodonetsk Azot Association. They were accompanied by officials of a new government, carrying an order signed by a minister under Kuchma's successor, Viktor Yushchenko.
The order was based on a court case filed by a fictitious company, on behalf of a politician who stood to gain from the seizure, according to a senior government official.
"It was a very serious abuse of the system," said the chairwoman of the country's State Property Fund, Valentyna Semeniuk.
The accumulated weight of scandal and internal rifts has destroyed the political coalition that Yushchenko formed to challenge Kuchma's government and create a newly democratic, corruption-free government. It has also raised questions about the true success of what came to be known as the Orange Revolution, as members of Yushchenko's team volley accusations of abuse of power, bribery and other forms of corruption.
"Corruption exists in different countries, but in civilized countries there is prompt action against it," said Oleksandr Zinchenko, Yushchenko's chief of staff, who resigned, coincidentally, on the same day that the company was seized. Three days later he went public with accusations of corruption among Yushchenko's senior aides.
Zinchenko's resignation provoked a political firestorm here that shows little sign of subsiding.
Last week Yushchenko dismissed his prime minister and the rest of her government, as well as the head of the customs service. He also suspended or accepted the resignation of several members of his staff who are at the center of Zinchenko's accusations.
Even so he has defended his aides, much as Kuchma called accusations against his own aides politically motivated. "There is an anecdote," Yushchenko said Monday. "It does not really matter whether a man has a daughter or does not have a daughter. It is enough to say in public that his daughter does not behave herself well."
That has not stopped him, however, from accusing the departed prime minister, Yulia Tymoshenko, of corruption herself. After first striking a conciliatory note after her dismissal, Yushchenko accused her of siphoning $1.6 billion from the budget "in favor of private undertakings," coercing judges and improperly intervening in a dispute over a steel factory, Nikopol Ferroalloy Plant.
Yushchenko appointed a new prime minister, Yury Yekhanurov, and has since rallied political parties, including some that he opposed only a year ago, to form a sort of unity cabinet. He also created a commission to investigate corruption in his inner circle, but gave it only 10 days - until next week - to say whether the charges warrant further investigation.
Reports of bribery and corruption have swirled around Yushchenko's circle from the time of his inauguration in January.
"Corruption is in the air," Tymoshenko, who was one of the most impassioned and popular leaders of last year's protests, said in an interview, citing complaints of businessmen forced to pay bribes to members of Yushchenko's administration. "This is the air we had to breathe."
A senior Western diplomat said he gave credence to reports that Yushchenko's aides had solicited payments for access to the president, for appointments to government positions, to influence court cases and to win control over state enterprises.
"I think he is vulnerable, because of his loyalty, to the bad behavior of those around him," the diplomat said of Yushchenko, speaking on condition of anonymity because of diplomatic protocol.
