Czech president rejects pardon of Nomura officials

PRAGUE, Dec 4 (Reuters) - Czech President Vaclav Klaus rejected a government call on Monday to pardon three executives of Japan's Nomura <8604.T>, charged in the country for their activities at failed bank IPB.

The collapse of IPB, partly owned by a Nomura affiliate, was the biggest business collapse in Czech history and cost the government over 100 billion crowns ($4.75 billion), or more than 3 percent of the country's annual economic output.

The right-wing government asked Klaus to pardon the managers as part of a settlement with Nomura signed last week. The plea for a pardon sparked outrage among many Czechs and in local media, which saw the move as a sacrifice of justice.

Klaus said in a radio interview he did not find a strong enough public interest to pardon the Nomura managers, accused of alleged criminal activity in deals connected with the bank which collapsed in 2000.

The three bank officials -- Randall Dillard, David Thirsk and Eduard Onderka -- worked in the Czech Republic at the time.

While no court ruling in the case has been given, a presidential pardon would automatically trigger the dismissal of the case.

"I declare I did not find that (strong enough public interest)," Klaus told the public Czech Radio.

A Nomura spokesman said in a statement the charges "were politically motivated" and denied any wrongdoing in the case. He said Dillard is a U.S. citizen, Thirsk a Briton and Onderka a Czech national.

Under last week's deal, both the Czech state and Nomura will drop a series of legal suits for compensation for the failure of the bank. The government has said the settlement would stand regardless of Klaus's decision on the managers.

IPB bank was controlled by Nomura through an affiliate before it ran into a liquidity crunch in 2000.

A central bank-appointed administrator seized the bank with the help of armed police units and three days later sold it to rival CSOB, a Czech unit of Belgium's KBC, for 1 crown in a deal involving state guarantees.

The government took over IPB's non-performing debt, which cost it more than 100 billion crowns.

The Czech government and Nomura then blamed each other for IPB's collapse and each demanded compensation.

((Reporting by Jan Lopatka, editing by Alan Crosby and Fredrik Dahl; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

($1=21.04 Czech Crown)

Keywords: CZECH NOMURA/