RIYADH, May 6 (Reuters) - Saudi Arabia's planned investment firm will have 20 billion riyals ($5.33 billion) in capital and the world's largest oil exporter is "in a hurry" to start operations, the country's finance minister said on Tuesday.
"It is now being examined by the Council of Ministers. The approval should come about within the usual timeframe," Finance Minister Ibrahim al-Assaf told Reuters on the sidelines of a Euromoney conference in the Saudi capital, Riyadh.
"We are in a hurry to start it," he said.
(Reporting by Souhail Karam; Editing by Amran Abocar)
((daliah.merzaban@reuters.com; +971 4 391 8301; Reuters Messaging: daliah.merzaban.reuters.com@reuters.net)) ($1=3.75 riyals)
Keywords: SAUDI FUND/CAPITAL
RIYADH, May 6 (Reuters) - Saudi Arabia has been working "for some time" to curb government spending and is having some success, its finance minister said on Tuesday, as the world's largest oil exporter grapples with near-record inflation.
"We have been working for some time to curb public spending ... we are succeeding in reducing public spending in some areas," Ibrahim al-Assaf told reporters on the sidelines of a Euromoney conference in the Saudi capital, Riyadh.
Inflation in the world's largest oil exporter hit 9.6 percent in March, the highest since at least the oil boom of the 1970s, as rents surged 19 percent and food prices jumped 14.2 percent.
"What causes further concern is that the two sources that feed inflation in the kingdom ... housing and foodstuffs ... are still active," Saudi Central Bank Governor Hamad Saud al-Sayyari told delegates at the conference.
(Reporting by Souhail Karam; Editing by Daliah Merzaban)
((daliah.merzaban@reuters.com; +971 4 391 8301; Reuters Messaging: daliah.merzaban.reuters.com@reuters.net))
Keywords: SAUDI SPENDING/
(Refiles to additional subscribers) (Adds details, background, byline)
By Lesley Wroughton
WASHINGTON, May 5 (Reuters) - The head of South Africa's Scorpions crime-fighting unit, Leonard McCarthy, was appointed on Monday to lead the World Bank's anti-corruption department, a day after the South African government said it would disband the unit.
World Bank President Robert Zoellick, in a statement, said South African President Thabo Mbeki had agreed to release McCarthy from service to take up the position as vice president of the bank's Department of Institutional Integrity on June 30.
The World Bank anti-corruption unit investigates fraud and corruption in development projects financed by the global development agency in developing countries, and McCarthy will lead an overhaul of the department.
"Leonard McCarthy is recognized worldwide for his integrity, independence and effectiveness in fighting corruption and strengthening good governance," Zoellick said.
McCarthy's appointment comes a day after Mbeki's government agreed to dissolve the Scorpions, bowing to pressure from supporters of rival and head of the governing African National Congress, Jacob Zuma, who accused it of political abuse.
In 2005, the unit raided properties belonging to Zuma and his lawyer as part of an investigation of the politician, who is scheduled to go on trial in August for fraud, bribery and other wrongdoing tied to an arms scandal.
The ANC leadership last year voted to dissolve the unit, officially known as the Directorate of Special Operations. The unit was established by Mbeki to fight high-profile corruption cases and scored successes against organized crime in a number of cases.
On Monday, an independent report by Judge Sisi Khampepe defended the Scorpions, arguing it was needed to tackle organized criminals in the crime-infested country.
While urging Mbeki to retain the Scorpions, the report also criticized the unit for feuding with police and delving into matters outside its realm.
The unit was independent of the police and reports to the National Prosecuting Authority, which in turn answers to the South African Justice Department.
McCarthy has held numerous positions in government, including investigating director in the Office for Serious Economic Offenses, deputy attorney general of the Cape province and senior public prosecutor. He was appointed as a director of public prosecutions by former President Nelson Mandela.
The World Bank's integrity department has not been without its own controversy over the past several years, amid concerns about its investigative practices and pressure from member countries that the bank must do more to root out corruption.
Former U.S. Federal Reserve Chairman Paul Volcker led a panel last year to examine the World Bank unit's role amid criticism of its director, Suzanne Rich Folsom, who resigned in January.
Volcker's panel said tensions and friction between the World Bank anti-corruption unit and the rest of the bank undermined the unit's ability to do its work properly. It suggested the bank find ways to better integrate its work into mainstream operations.
An internal World Bank group in January said it agreed broadly with Volcker's recommendations, including the creation of a small independent advisory board to ensure the independence and accountability of the anti-corruption unit. (Reporting by Lesley Wroughton)
((lesley.wroughton@reuters.com; +1-202-898-8317)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com
* BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: WORLDBANK/CORRUPTION
(Adds details, Zoellick quote)
WASHINGTON, May 5 (Reuters) - The head of South Africa's Scorpions crime-fighting unit, Leonard McCarthy, was appointed on Monday to head the World Bank's anti-corruption unit.
World Bank President Robert Zoellick, in a statement, said South African President Thabo Mbeki had agreed to release McCarthy from service to take up the position as vice president of the bank's Department of Institutional Integrity on June 30.
The World Bank unit investigates fraud and corruption in development projects financed by the global development agency.
"Leonard McCarthy is recognized worldwide for his integrity, independence and effectiveness in fighting corruption and strengthening good governance," Zoellick said.
McCarthy's appointment comes a day after Mbeki's government approved disbanding the FBI-styled Scorpions, bowing to pressure from supporters of rival Jacob Zuma who accused it of political abuse.
The governing African National Congress, led by Zuma, voted to get rid of the unit, officially known as the Directorate of Special Operations, last year.
The Scorpions, which was independent of the police and reports to the National Prosecuting Authority, was established to fight high-profile corruption cases and scored successes against organized crime in a number of cases.
McCarthy has held numerous positions in government, including investigating director in the Office for Serious Economic Offenses, deputy attorney general of the Cape and senior public prosecutor. (Reporting by Lesley Wroughton; editing by Leslie Adler) ((lesley.wroughton@reuters.com; +1-202-898-8317)) Keywords: WORLDBANK/CORRUPTION
WASHINGTON, May 5 (Reuters) - The head of South Africa's former Scorpions crime-fighting unit, Leonard McCarthy, has been appointed to head the World Bank's anti-corruption unit, bank President Robert Zoellick said on Monday.
In a statement, Zoellick said South African President Thabo Mbeki had agreed to release McCarthy from service to take up the position at the bank on June 30. (Reporting by Lesley Wroughton; editing by Jonathan Oatis) ((lesley.wroughton@reuters.com; +1-202-898-8317)) Keywords: WORLDBANK/CORRUPTION
Next: UPDATE 2-Turkey cuts 2008 primary surplus target to 3.5 pct