Kremlin Boss Claims Innocence

The name Pavel Borodin almost always comes up whenever investigators talk about Russian money laundering or Kremlin corruption. CBS News Correspondent David Hawkins reports.

Borodin's job, manager of Kremlin property, may sound modest, but he controls a $600 billion empire that includes not only the Kremlin itself, but embassies, resorts, hospitals and even an Arctic diamond mine.

U.S. investigators say Borodin also controlled accounts at the Bank of New York through which millions of dollars were suspiciously transferred.

Swiss investigators allege that Borodin took bribes from a Swiss contractor, Mabatex, in return for construction contracts including the lavish renovation of the Kremlin palaces.

In an interview with CBS News, Borodin said all the allegations against him are a joke.

"Absolutely nothing has come of it," said Borodin.

When asked if he is innocent of the charges, Borodin said, "Of course. For me this is simply funny."

Borodin says if anyone can prove he's stashed dirty money in an overseas account he'll split it with them 50-50.

As for allegations that Mabatex gave President Boris Yeltsin and his family credit cards and $1 million dollars. "That's absurd," he says.

"It simply never happened. Mr. Yeltsin can't even imagine what a credit card is," he said.

The good-humored Siberian is so close to the president he's said to be the only one who can tell Yeltsin a Yeltsin joke and get away with it. But the corruption allegations against Borodin are no laughing matter and the prosecutors on his trail aren't likely to be so easily amused.

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