Statement #9 By Educated Media Foundation (formerly known as Internews)

June 22, 2007

On June 21, 2007, Golovinski District Court of Moscow ruled to deny the motion by Educated Media Foundation to render legally unjustified the impounding of financial and accounting documentation, Articles of Incorporation, and electronic data storage devices belonging to Internews and Educated Media Foundation.

In its ruling, the court explained the legality of the impounding by a need to investigate and determine whether 9,500 Euros and 5,130 rubles brought into Russia by Educated Media President Ms. Aslamazyan had been acquired in a legal fashion.

It follows from the court’s logic that if customs officials were to detain a chief executive of some production facility because he failed to declare some hard currency, they would necessarily be compelled to seize all operational documentation of this production facility and all of its computers.

On June 15, Manana Aslamazyan was indicted on charge and specification of Article 188 (Part 1) of the Criminal Code of the Russian Federation (Failure to Declare in Writing 9,550 Euros and 5,130 Rubles).

During a court hearing at Golovinski District Court on June 20, 2007, it became known that on May 15, 2007 yet another court ruling had been made. Specifically, the ruling in question called for the filing of a separate criminal case against Ms. Aslamazyan in connection with the documents and data servers impounded at the Foundation’s office. Further, the ruling required that this case be then forwarded to the Office of Deputy Prosecutor-General of the Russian Federation for a substantive determination as to whether or not another criminal charge against the Foundation was warranted on specifications of Article 171 (Unlawful Entrepreneurship) and Article 174 (Laundering of Money Acquired by Other Persons in an Illegal Fashion) of the Criminal Code of the Russian Federation.

At this time, the Foundation has no information about the outcome of this case.

The allegations set forth in the ruling are without merit because Internews had conducted licensed educational activities, while it is alleged that it never held a license in the first place. In contrast, the successor of Internews, Educated Media Foundation, has never even conducted any such activities.

The Foundation is also accused of having received certain monetary transfers from foreign organizations during the December ’06 – March 2007 time frame. Investigative authorities maintain that they do not possess any information indicating that this incoming money has ever been actually spent. This, they argue, is what led them to initiate criminal prosecution of the Foundation for legalization (laundering) of the money acquired in an illegal way.

This charge is unjustified because the payments made into the Foundation’s accounts constitute grant money registered as international technical assistance. This is corroborated by certifications by the Commission for Technical Assistance under the auspices of the Russian government.

The Foundation has always been abiding by the procedure established for periodic reporting with respect to use of grant money with targeted application. There has never been any criticism voiced by any of the organizations charged with overseeing such reporting.

See previous articles and statements about EMF