Yeltsin Orders Financial Disclosures to Fight Corruption

MOSCOW — Seeking to restore faith in his government after five years of widespread corruption, Russian President Boris N. Yeltsin ordered thousands of public officials Friday to declare all their personal income and property.

“It is my task to put an end to the situation when civil service becomes a source of enrichment,” Yeltsin declared in a nationwide radio address.

Under a decree signed by Yeltsin, officials from the president on down will be required to report their family income and holdings as well as their personal financial status. The president said he will start by making a report on his own finances shortly.

The order is one of a series of anti-corruption measures Yeltsin has unveiled in recent months, though so far his campaign has achieved little success.

“Corruption is like a weed,” the president said. “No matter how you uproot it, it will grow anyway. But if you do not weed, the earth will be covered with weeds alone.”

Government corruption has flourished in Russia for hundreds of years--thriving during czarist times, the Soviet era and now under capitalism.

Most Russians believe that their tax payments go only to line the pockets and build the personal dachas of public officials. With little trust in their leaders, more than 80% of Russians cheat on their taxes--contributing to a fiscal crisis that has virtually paralyzed the government.

“People are tired of believing in slogans and promises,” Yeltsin said. “They pin their hopes for the improvement of life primarily on the honesty of government representatives.”

In recent months, Yeltsin has ordered the opening of government contracts to competitive bidding and decreed that government officials must give up their foreign-made luxury cars--replacing them with notoriously unreliable and poorly made Russian cars.

But his decree requiring officials to declare their income and property--if it is carried out--could do the most yet to combat graft.

The move was prompted, at least in part, by a Russian newspaper article claiming that Prime Minister Viktor S. Chernomyrdin--the head of one of Russia’s biggest monopolies before joining the government--is worth $5 billion. The story was later disavowed by the paper. But what many Russians found hardest to believe was Chernomyrdin’s assertion that he made only $700 a month and owned no property.

“I must stress this is not the beginning of purges,” Yeltsin said. “Nobody is forbidden to be rich today. But money must be earned honestly. A high government post must not serve as a source of money.”

Much of the impetus for the anti-corruption fight appears to come from newly appointed First Deputy Prime Minister Boris Y. Nemtsov, a reformer who took office with the pledge: “I will not lie, I will not take bribes or steal.”

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In his new post, Nemtsov has pushed Yeltsin to order government officials to make public their income and property holdings.

The decree will apply to members of Yeltsin’s Cabinet and staff, security officials, governors, mayors and a host of other government officials. Yeltsin also called on members of parliament to declare their income, but for them the decree is not legally binding.

The president urged those political appointees and other government officials who have acquired their wealth illegitimately to resign their posts rather than lie about their financial holdings.

“If you cannot give a reasonable report about your property, if you cannot fill in the declaration, resign of your own free will,” he said. “Do not shame the government. Do not lie. Give way to honest men. Russia deserves honest government.”

Acknowledging the importance of making income declarations public, Yeltsin said the information would be provided to journalists on request.

“I am convinced that voters have the right to know about the income and property of all top state officials,” he said. “The information will be available to the public.”

Yeltsin noted that since the days of the Soviet Union, graft has become more sophisticated and corrupt officials have adapted well to the new style of capitalism.

“Today the bribe-taker appears like quite a charming, polite and urbane person,” he said. “Better than many, he knows how to pronounce nice words about duty, honor, patriotism.”

The president, who has made numerous speeches over the years attacking graft--with little effect--was realistic about the prospects of his latest campaign.

“I want to warn you that we should not entertain illusions,” he told his audience. “We are unlikely to celebrate a speedy victory over corruption.”