by Jennifer Williams

The Washington Post reports that an alleged payment of US $600 000 was made by Berlusconi to Mills in 1997. The pair, apparently “close friends”, have previously been charged with “false accounting, embezzlement and tax fraud”, writes the Post.

Russian newspaper Kommersant notes that Berlusconi - Italy’s richest man - “has ample experience fighting legal battles”, but describes the alleged payment as “a new revelation”, which “prosecutors believe to be incontrovertible evidence of Mr Berlusconi’s guilt”.

According to the Italian website ANSA, the trial is due to begin on 13 March. Judicial sources say the defendants face sentences of three to eight years if convicted.

The BBC notes that Mills, who will stand trial alongside Berlusconi, is the estranged husband of British culture secretary Tessa Jowell. The official spokesman of British Prime Minister Tony Blair “refused to be drawn on the case”, it writes.

By Jennifer Williams

According to Reuters, Olmert was accused of trying to “help two overseas businessmen” - who, the report says, are Olmert’s “personal friends” - in the bidding for Bank Leumi, Israel’s second biggest bank.

“Neither of the businessmen purchased the bank,” Reuters notes, adding that the controlling share of Bank Leumi was eventually sold to an American investment group for US $540 million.

An investigation is underway into allegations that Olmert “took bribes” during the deal, the BBC reports. It adds that the Prime Minister was already under investigation for the sale of a property to a political supporter at an allegedly inflated price, as well as for “appointments made in 2004 when Olmert was trade and industry minister”.

The Jerusalem Post reports that the State Comptroller, Israel’s government watchdog, is expected to recommend that Olmert be placed under criminal investigation by the Attorney General over the latest allegations.

by Jennifer Williams

Reuters reported that the Chinese authorities had made “their first known arrest” in the corruption investigation. Zhang Rongkun, chairman of Fuxi Investment Holding Co. and China’s 16th richest man was arrested for “alleged impropriety” involving a loan of city funds, the news agency reported.

The Taipei Times said the director of the city’s Economic Commission, a “top judge” and the vice head of the Shanghai Maritime Court, had all been “relieved of their duties”. No official reason was given for the dismissal, but the newspaper linked it to the pension fund investigation, which centres on “the alleged misuse of up to US $400 million” from the city’s retirement fund.

The International Herald Tribune reports that Yuan Yonglin, an executive of Shanghai Haixin Group, a company that makes 2008 Olympic mascots, also is being investigated for “involvement” in the pension fund scandal.

According to the International Herald Tribune, the crack-down is “part of a perennial campaign to stamp out rampant abuses that threaten to erode public acceptance of Communist rule”.