Burundi's central bank boss arrested in graft case

BUJUMBURA, Aug 4 (Reuters) Police arrested Burundi's central bank governor today in connection with a graft case in which the government lost millions of dollars by overpaying an oil importer, officials said.

A public prosecutor told local radio Isaac Bizimana would be questioned about a payment he authorised to the company, Interpetrol. Last month, a former finance minister was accused of giving the firm millions in unexplained payments.

''The central bank governor was brought in this morning on the basis of a warrant from the public prosecutor,'' Emmanuel Ndayiziga, director of Burundi's main jail, told Reuters.

Bizimana's lawyer could not immediately be reached for comment.

Under a deal between the government and Interpetrol, the local company was to be paid for any exchange rate losses it incurred in its operations between 1996 and 2002.

During that period, landlocked Burundi was under a regional economic blockade imposed because of a military coup.

A state auditors' report released last month said Interpetrol received more than 21 million dollar in 2005 to cover such losses, several times the amount owed, according to the report.

The auditors recommended the prosecution of then-finance minister, Denise Sinankwa, who is out of the country. She has denied the charges against her.

REUTERS PY VC2007