HIGH OFFICIALS ACCUSED IN BRAZILIAN CRIME RING

SAO PAULO, Brazil - The Congress is accusing judges, lawmakers, Paraguayan
Gen. Lino Oviedo and 826 other persons of drug trafficking and involvement
in organized crime.

After a 20-month investigation, the Parliamentary Commission for
Investigations (CPI), a branch of Brazil's Congress, concluded that federal
and state representatives, six judges, ex-governors, mayors, military and
civilian police officers, and businessmen from 17 of Brazil's 26 states
were part of crime organizations.

All are accused of being involved in homicides, money laundering,
corruption, tax evasion and perjury.

One of the investigation's surprising revelations is the suspected
involvement of Gen. Oviedo, who is accused of participation in
international drug trafficking, illegal arms trade and money laundering.
Gen. Oviedo is in custody in Brazil awaiting extradition to Paraguay, where
he is wanted for the March 1999 assassination of Vice President Luis Maria
Argana.

Other international suspects being investigated are Suriname's former
President Desi Bourtese and his son Dino, who is a diplomat in Brazil's
capital, Brasilia.

The CPI also accused Bolivian Col. Raul Mendes of leading the armed branch
of a crime organization headed by former Brazilian Rep. Hildebrando
Pascoal, who is in jail for participating in organized crime in the state
of Acre.

Directors of six financial institutions and telephone companies were
accused of not collaborating with investigators and refusing to disclose
the passwords to bank accounts of suspected criminals.

"CPI's job is to ensure the dismantling of organized crime is initiated,"
said Rep. Moroni Torgan, author of the final CPI document in which he
suggested the creation of a Special Prosecution Commission, much like
"Operation Clean Hands" which fought the Italian Mafia in the 1980s.

The CPI revealed that small clandestine airports were run by
narco-traffickers throughout the state of Sao Paulo. It said Sao Paulo was
the main route for support, distribution and consumption of drugs in the
country.

"For whatever part of the country or the world, the trafficker has
highways, airports and seaports," the CPI said.

The report said cocaine is purchased in Bolivia and Colombia at prices
ranging from $250 to $400 per pound and sold back in Sao Paulo at $1,600
per pound.

The drug money was being reinvested in automobile companies, real estate
and other legitimate businesses, the report said.