The Magnitsky affair has soured relations between Moscow and Washington, casting a spotlight on corruption in Russia.

It led to US sanctions on a group of Russian officials, retaliation by Russia and the bizarre spectacle of a dead man being put on trial.
That man, the late lawyer Sergei Magnitsky, was found guilty of tax fraud by a Moscow court on 11 July 2013, as was his former boss, US-born investment fund manager Bill Browder. Mr Magnitsky died in prison in 2009 - allegedly after beatings - but Russia dropped an investigation into his death.
Who was Sergei Magnitsky?
Mr Magnitsky was an auditor at a Moscow law firm when he discovered what he said was a massive fraud by Russian tax officials and police officers.
He uncovered the alleged theft of $230m (£150m). After reporting it to the authorities, he was himself detained in 2008 on suspicion of aiding tax evasion, and died in custody on 16 November 2009 at the age of 37.
He acted as a legal adviser for London-based Hermitage Capital Management (HCM), where colleagues insist the case against him was fabricated to make him halt his investigations.
Despite his death Russian prosecutors decided to put him on trial - a case dismissed as a "circus" by his family and by HCM founder Bill Browder, who was himself tried in absentia. Mr Browder is now a British citizen, based in London.
How did he die?
Mr Magnitsky is said to have died of acute heart failure and toxic shock, caused by untreated pancreatitis.
An investigation by Russia's Presidential Human Rights Council also found that he had been severely beaten - an allegation made by his family too.
Mr Browder has alleged that Mr Magnitsky was subjected to torture and beatings in prison.
Did Russia investigate?
An official investigation by the Russian authorities was ordered in November 2009 by the then President Dmitry Medvedev, and several prison officials, including the deputy head of the Russian federal prison administration (FSIN), were fired over his death in December 2009. Initially, the officials said his death was caused by cramped conditions and failure to provide adequate healthcare.
In June 2010, the Russian Interior Ministry started an investigation into the improper imprisonment of Mr Magnitsky, but they did not name any suspects.
In 2011 one prison doctor was charged with involuntary manslaughter, but the charges were later dropped. Another doctor was charged with medical negligence, but later acquitted. No other suspects have been named.
In its July 2011 report, the Human Rights Council pointed to a conflict of interest in the case, as some of those investigating Mr Magnitsky were the very same people he had accused of massive corruption.
But on 19 March 2013 the Investigative Committee - Russia's version of the FBI in the US - dropped the investigation, saying Mr Magnitsky had been legally arrested and detained, and that he had not been tortured.
How did this start?
Bill Browder and his investment fund HCM was one of the largest private equity firms investing in Russia before the scandal broke.
In 2005, after he exposed the details of an enormous corruption scheme involving many high-ranking Russian officials, Mr Browder's visa to Russia was cancelled and he was deported from Russia, deemed to be a national threat. Despite his ban, he kept investigating corruption in Russia, working closely with Mr Magnitsky.
As part of his work for HCM, Mr Magnitsky discovered how some Russian companies were registered to new owners and, while money was changing hands, large rebates and VAT claims were allegedly laundered through Russian banks and appropriated by a group of tax and police officials.
His death prompted the compilation by human rights activists and HCM of the so-called Magnitsky list of some 60 officials - including some from the interior ministry, police, and tax authorities - who Magnitsky alleged were involved in the crime. The full list of names has never been released.
How does the US come into it?
Sergei Magnitsky's death had wide public resonance, not only in Russia, but also in the West. His case became a symbol of the fight against corruption in Russia.
In December 2012 the US Congress adopted the Magnitsky Act. It enables the US to withhold visas and freeze financial assets of Russian officials thought to have been involved with human rights violations.
The act replaced the outdated Jackson-Vanik amendment, introduced in 1974, which tied trade relations with the former Soviet Union to the emigration of Jews and other Soviet minorities, and which included a number of restrictions for Russian exporters.
How did Russia respond?
Just days after the US act was passed Russia retaliated by barring Americans from adopting Russian orphans.
The adoption ban was part of a tit-for-tat law which also blacklisted US citizens considered by Russia to have violated human rights.
Another clause suspended the activities of non-profit organisations that receive cash and other assets from the US and that engage in political activities in Russia. There are concerns that this will hit some human rights campaigners in Russia.


The British and Irish Lions will play two Tests in Auckland on their 10-match tour of New Zealand in 2017.

Eden Park will host the first and third Tests, while Wellington's Westpac Stadium will stage the second Test.
The Lions - who have not won a series against the All Blacks since 1971 - will face all of their hosts' Super Rugby teams and New Zealand Maori.
The five-week trip will begin with a match against a provincial side in Whangarei on 3 June 2017.
The Lions have lost four successive Test series against New Zealand since John Dawes captained them to a 2-1 victory there 44 years ago.
That sequence includes a 3-0 whitewash under the direction of World Cup-winning England coach Sir Clive Woodward on their last visit 10 years ago.
But the Lions will head for New Zealand having ended a 16-year wait for a series victory with a 2-1 win in Australia in 2013.
The three-Test series starts in Auckland's 50,000-capacity Eden Park on 24 June.
The Lions and All Blacks will then meet at Wellington's 34,500-capacity Westpac Stadium seven days later before returning to Eden Park on 8 July.
Six games are scheduled before the first Test, including matches against Super Rugby teams the Blues, Crusaders, Highlanders and Chiefs.
All midweek fixtures will take place on a Tuesday apart from the match against the Blues, which takes place on Wednesday, 7 June.
2017 British and Irish Lions tour fixtures:
3 June - Provincial union team (Toll Stadium, Whangarei)
7 June - Blues (Eden Park, Auckland)
10 June - Crusaders (AMI Stadium, Christchurch)
13 June - Highlanders (Forsyth Barr Stadium, Dunedin)
17 June - Maori (International Stadium, Rotorua)
20 June - Chiefs (Waikato Stadium, Hamilton)
24 June - New Zealand (First Test, Eden Park, Auckland)
27 June - Hurricanes (Westpac Stadium, Wellington)
1 July - New Zealand (Second Test, Westpac Stadium, Wellington)
8 July - New Zealand (Third Test, Eden Park, Auckland).


A body, believed to be that of a missing kayaker, has been found in the River Wey at Guildford, Surrey Police has said.

Grant Broster, 56, from Guildford, was on his family's kayak on 28 March when it capsized in front of his son.
Police said they were called to the area near the Waterside Centre at about 18:00 BST following reports a body had been found.
Formal identification has not yet taken place.
A police spokesperson said "Mr Broster's family have been notified".
"Our thoughts are with the family and friends of Mr Broster at this difficult time," they said
The official search for Mr Broster was called off on 5 April.
The kayaker went missing near Guildford Borough Council's offices in the aftermath of Storm Katie.
His son went into the water to try to help him and was eventually pulled to safety, but Mr Broster was swept away.
Witnesses said the kayak had been "dragged around like a bottle very fast".
The Environment Agency had issued a flood warning for river which was swollen by the heavy rain.
A page set up to raise money for Surrey Search and Rescue, which helped police search for Mr Broster, has raised more than Â£7,000.
A statement on the page said: "Grant's family particularly want to thank Surrey Police for their compassion and professionalism.
"They came today to tell us that Grant's body has been found.
"We hope another family benefits from Surrey Search and Rescue's services supported by your kind donations.
"It gladdens us to know that from bad comes good and that we can support those who give selflessly."


Health and education will be squeezed by more than £1bn because of changes to the way public sector pensions are funded, figures seen by the BBC show.

It comes after George Osborne announced in the Budget that employers would have to contribute more to pensions for NHS staff, teachers and the police.
He said individual pensions would not be affected.
The Treasury said employers had three years to get ready for the changes and would be helped by low inflation.
The technical changes to the way public sector pensions are valued mean departments face contributing more to their overall cost from 2019 - effectively saving the Treasury around £2bn billion a year.
As a result, Commons library figures obtained by the Liberal Democrats show, the NHS will have to find an estimated £650m per year.
The changes will also see pension contributions for teachers rise by more than £400m, the Armed Forces by more than £300m and police forces by more than £100m.
BBC chief political correspondent Vicki Young said some ministers had asked for clarification over how the changes would impact on their budgets, but so far there had been no suggestion the extra cost would be shouldered by the Treasury.
The health and schools budgets are protected but both are already under pressure and this decision will add to the strain, she added - and the extra cost to the NHS would wipe out the real terms increase ministers have pledged for 2019-20.
Lib Dem leader Tim Farron said the cuts were being "sneaked through" and would ultimately mean less money to spend on teachers, doctors, nurses and the police.
"It will mean the NHS, it will mean schools, it will mean the armed forces, it will mean the police," he told Radio 4's Today. "It takes that money directly out of the front line of those services."
Mr Farron said the cuts would be "intolerable" even if they served a justifiable economic purpose but Mr Osborne was acting solely to try and meet his self-imposed goal of a budget surplus by 2020. "He has chosen to set targets which are unnecessary."
Treasury officials admitted there would be an additional cost for public sector employers but they had been aware the changes were coming.
"We're committed to regular revaluation to ensure public sector pension costs are met," a spokesman said.
"The Budget announcement means employers have three years to prepare and we think they should be well placed to absorb extra cost of contributions - especially because inflationary pressures are significantly lower than expected when budgets were set at spending review."
The figures were revealed in the aftermath of the Budget as Mr Osborne faced criticism for cuts to some disability payments and questions over whether he would hit his fiscal targets.


It is refreshing to see that no Premier League managers have been sacked yet this season but I am sad to say I cannot see that statistic lasting much longer.

In his regular BBC Sport column, Robbie Savage looks at which managers are most at risk of being the first to lose their jobs in the Premier League this season, and why we will not have to wait long to see the first top-flight managerial casualty.
Forget unhappy fans, player power or impatient owners - there is one big reason why managers of teams at the bottom of the table are at risk, and his name is Tony Pulis.
It is not his fault, but all the chairmen and owners out there will see what Pulis did at Crystal Palace last season, when he came in and kept the Eagles up, and think 'he saved them, and he can save us'.
Despite what some Arsenal and Liverpool fans might say - and I have heard a few idiotic comments from them on my 606 show on BBC Radio 5 live - there is nobody available right now who could improve on Arsene Wenger or Brendan Rodgers at the top end of the Premier League. They are under pressure, but they are staying put.
But, with Pulis waiting in the wings, it is a different story for the clubs fighting relegation.
The men in most danger of losing their jobs - wrongly, in my view - are Leicester City's Nigel Pearson, West Brom's Alan Irvine and QPR's Harry Redknapp.
Redknapp finds himself in the reverse of the position he was in two years ago when, like Pulis is now, he was out of work but seen as the potential saviour for several struggling teams.
QPR took the plunge, sacked Mark Hughes, and appointed Harry.
Now we are waiting to see who will crack first and go for Pulis.
It is unusual that it has not happened already - if everyone survives the weekend then it will be 18 years since we have got as far into a season without any top-flight managers changing jobs, and there will have been only two seasons in the Premier League era where there has been a longer wait.
That is partly down to the table being so close - nobody is out of touch with the top four or cut adrift at the bottom.
But, with Christmas fast approaching, the first sacking will definitely happen soon. The January transfer window always seems to help chairmen make their mind up about whether they have the right man for the job, and to spend their money.
When your owner has a big helicopter that lands on the pitch to pick him up after every home game, like Leicester's Vichai Srivaddhanaprabha does, then you know he is seriously rich and wants to stay in the Premier League.
Unfortunately for Foxes boss Nigel Pearson, my old club are bottom of the table with two points from their last nine games and every mistake his team makes at the moment seems to lead to an opposition goal.
I hope they stick with Pearson, because he is a good manager who got them up in the first place.
Knowing how hard winning promotion to the Premier League is, I think he should be given a full season to try to keep him there. Ideally, he would be in the same situation as Burnley's Sean Dyche, who is under no pressure whatsoever.
But being realistic, things do not look good for Pearson and he is the manager who is most at risk.
West Brom manager Alan Irvine is not far behind him, though.
You might think Irvine would get a bit more time because, apart from his predecessor Pepe Mel, each of the Baggies' last five managers got at least 15 months, and Irvine has only been in charge since June.
But this time last year, they got rid of Steve Clarke after four straight defeats, which is exactly the run Irvine is on now.
I have spoken to Clarke since his exit and he said that, when it happened, he had no inkling he was about to be sacked.
Sam Allardyce has shown with West Ham that, if you are brave and stick with your manager, you sometimes get your rewards
He made the point that, at a club like West Brom, you will go on runs like that every season and it is down to the chairman Jeremy Peace to stick with the manager.
Irvine, who was a surprise appointment in the first place, could be about to find out how much patience Peace has got. His next three games are all against fellow strugglers - Hull, Aston Villa and QPR - and West Brom's form has to improve soon.
The next few games will be massive for Harry Redknapp at QPR too, starting against Burnley on Saturday.
As well as Pulis, Redknapp has got Glenn Hoddle in the background at Loftus Road as a potential replacement, and an owner in Tony Fernandes who has shown he is not afraid to change things when his side have struggled in the past.
Does it work? It did for Palace with Pulis. But sacking their manager did not help any of the three relegated teams last season, when Fulham tried it twice.
After watching Leicester play Liverpool this week, and from what I've seen of West Brom and QPR recently, all of those teams looked like they were still playing for their manager.
That will help them, but it won't necessarily save them. At Leicester in 2001, I was one of a few senior players who went to see the chairman when Peter Taylor was under pressure, because we liked him.
We asked for him to be given more time and bought him a few more games but, in the end, results dictated he had to go - they always do.
So far this season, there has been speculation about 11 of the 20 Premier League managers losing their jobs.
There were newspaper reports last month that Neil Warnock was on the brink of getting sacked by Crystal Palace after only a few games in charge, but I don't see it happening myself.
At least Warnock does not have to worry about stories that Pulis is going to get his job, because he only left Selhurst Park in August and there is no way he is going back there.
Paul Lambert is unpopular with the Aston Villa fans but, if you look at his win-ratio since he took over, he is not doing any worse this season than before.
Villa owner Randy Lerner stuck by him before, plus he gave him a new four-year contract in September. He is surely not going to get rid of him now.
Speaking of win-ratios, Tottenham manager Mauricio Pochettino's is lower than that of both of his predecessors; Tim Sherwood and Andre Villas-Boas.
Pochettino has only been in charge since the summer but he is already under pressure because of the record that Spurs chairman Daniel Levy has in getting rid of his managers who fall short of expectations.
His job certainly shouldn't be in danger, though, because Spurs need stability now.
I don't think they will make the top four, but they need to stick with a manager for a longer period and give him a chance.
I remember thinking not so long ago that Manchester City were on the brink of a crisis, but their transformation in form has been incredible.
Even so, I think City boss Manuel Pellegrini has to deliver in the Champions League.
Like Liverpool boss Rodgers, he needs a result in his side's final group game next week. But while I think Rodgers is safe whatever happens, it is a much bigger game for Pellegrini.
We are talking about the end of the season, not anytime soon, but his long-term future could depend on City reaching the knockout stages - you only have to look at what happened to his predecessor Roberto Mancini when he failed in Europe.
It is only a couple of weeks since Brendan Rodgers claimed he was favourite to get sacked, but he is not alone in being a manager who has responded to pressure with hugely improved results.
We all saw the banner telling Arsenal boss Arsene Wenger it was time to go, but he is now on a run of three wins with three clean sheets.
A season with Wenger is like watching a James Bond film, in that you know exactly what you are going to get - for car chases, gadgets and a villain who always loses in the end, you get a cup run, the knockout stages of the Champions League and, eventually, the top four in the Premier League again.
Even if the board does want to try something new, then it is not going to happen mid-season, and Wenger is never going to be sacked.
Newcastle manager Alan Pardew's future looked far less secure a couple of months ago, when he came under the most pressure I have ever seen a manager have to deal with, and he showed great character to cope with it.
In September, I wrote in one of my BBC Sport columns that Pardew sounded like a broken man and that it was hard to see him surviving in his job for much longer, but I am delighted that he has proved me wrong.
Magpies owner Mike Ashley stuck by Pardew in the bad times and now his job has to be one of the safest there is.
It has been a similar story for Sam Allardyce at West Ham, who was widely expected to be the first manager to be sacked this season.
Like Pardew, he had to deal with fans saying he had to go, but Allardyce's critics were on his back for his team's style of play as well as results.
Look at how things have changed now on both counts. It has taken him a while to get there but it just goes to show that, if you are brave and stick with your manager, you sometimes get your rewards.
Robbie Savage was speaking to BBC Sport's Chris Bevan


Crewe Alexandra manager Steve Davis has told his players they should not go on holiday this summer and should be working hard at the club instead.

The Alex were relegated from League One after finishing bottom of the table, 16 points adrift of safety, having won only seven of their 46 league games.
"I've told the players they shouldn't be going on holiday," Davis, 50, told BBC Radio Stoke.
"They should be in with the management grafting away to improve things."
Davis, who has been given the backing to carry on at Gresty Road by the club's board, is adamant that the squad must show commitment if they are to mount a serious challenge for promotion next term.
"For a lot of them, they should be in for the majority of the time proving themselves physically and mentally in preparation for pre-season," Davis said. "Everybody at the club has to do better, including myself."
The Alex have released 11 players, including strikers Marcus Haber and Lauri Dalla Valle and midfielder David Fox.
A contract has been offered to defender Zoumana Bakayogo and negotiations are still on-going with top scorer Brad Inman.
With 20 players contracted for next season, Davis is staying optimistic that their absence from League One will be short.
"It's a hard job," he added. "Nobody's kidding anyone. We have to stay positive though. There are one or two exciting players and we do need to get the right people coming in.
"One or two more players who are under contract may have to go out to free up some money - that's something we'll have to look at."
The other players not to have their contracts renewed by the Alex were Chris Atkinson, James Baillie, Liam O'Neill, Fraser Murdoch, Joe Kearns, Joe Howell, Toby Mullarkey and Andre Brown.


Kurtley Beale scored a try with his first touch before receiving a yellow card on his Wasps debut as his side beat Connacht in the European Champions Cup to go top of Pool Two.

Beale went over after seven minutes but was then punished for a high tackle.
Connacht were in the game up until Joe Launchbury scored the third of Wasps' four tries, Nathan Hughes and Josh Bassett also going over for the hosts.
Kieran Marmion and Rory Parata scored tries for Connacht.
However, Jack Carty missed two penalties as the Irish club were beaten in Europe for the first time this season.
Wasps, who started the day two points behind Pool Two leaders Connacht, are now three points ahead of them after the bonus-point win.
They have scored a total of 17 tries in their first three European games.
Australia international Beale agreed to join Wasps on 13 May, but suffered a serious knee injury less than a day later which delayed his debut for his new club.
However, the 27-year-old made up for lost time as he produced an outstanding display in an incident-packed debut.
He spun out of a collision with Stacey Ili before stretching over the line to score the game's first points before being shown a yellow card for a high tackle on Niyi Adeolokun.
Beale was also heavily involved in the build-up to tries from Launchbury and Bassett.
Connacht had beaten Toulouse and hammered Zebre in their opening two games in this season's competition.
Yet they failed to take the lead at any time in what was a physical and sometimes breathless game.
Marmion spotted a considerable gap around the forward fringes and sprinted clear to score an opportunist try before replacement Parata's touchdown after a clever interception.
Wasps were tested defensively, while Connacht showed spirit to come back from 10-3 down to draw level before moving to within three points of the hosts after trailing 20-10.
Yet they could find no way back as Launchbury and Bassett went over in the final quarter to kill the game.
Former Scotland scrum-half Rory Lawson on BBC Radio 5 live sports extra
What a way to introduce yourself to the fans of Wasps. Kurtley Beale will score many, many prettier tries than the one he scored today but he had a smile from ear to ear when he went over. As for his yellow card, I was amazed. There was no swing of an arm. It surprised me.
All eyes will be on Galway next Saturday (17:30 GMT) as Connacht get a chance to avenge this defeat in the return game.
Wasps director of rugby Dai Young on Kurtley Beale being sin-binned for a high tackle: "I think there would be a big fine around the corner if I really said what I really thought.
"There were obstacles in the game, and the referee's interpretation was one we had to battle with."
On Beale's performance: "To go to the other side of the world to play rugby is difficult enough, but to arrive somewhere injured and having to work for six months [to recover] is really tough.
"It's testament to his strength of character that he has come through that."
Connacht director of rugby Pat Lam: "The main feeling we have is that we are pretty deflated because it was a missed opportunity. We really thought we had a good chance to upset them here.
"There were enough opportunities for us there to win the game, but we didn't make the most of them. We will just have to dust ourselves off."
Wasps: Miller, Wade, Leiua, Beale, Bassett, Gopperth, Robson, Mullan, Taylor, Moore, Launchbury (capt), Myall, Johnson, Young, Hughes.
Replacements: Macken for Leiua, 49, Rieder for Beale, 73, , Simpson for Robson , 61, Bristow for Mullan, 73, Cooper-Woolley for Moore, 54, Gaskell for Myall, 67, Halai for Johnson, 73, Thompson for Young, 67.
Sin Bin: Beale, 18.
Connacht: O'Halloran, Adeolokun, Ili, Aki, Kelleher, Carty, Marmion, Buckley, McCartney, Carey, Dillane, Roux, Fox-Matamua, Heenan, Muldoon.
Replacements: Parata for Ili, 38, Blade for Kelleher, 51, J Cooney for Buckley, 73, Heffernan for McCartney, 67, Bealham for Carey 45, O'Brien for Roux, 41, E. McKeon for Heenan, 45.
Referee: Alex Ruiz (France)
For the latest rugby union news follow @bbcrugbyunion on Twitter.


Swansea City's goalless draw with Everton was symbolic of the club's progress, says manager Garry Monk.

The teams were evenly matched at Liberty Stadium on Saturday, with the point leaving Everton sixth in the Premier League and Swansea eighth.
The Swans ended last season in that position - above Everton - and Monk believes their standing in relation to the Toffees is a sign of improvement.
"I think that was a good marker to see where we're at," he said.
"We more than matched them. I thought we were great.
"That shows how far we've come as a club, the fact we're talking about Everton with all their history and the power they have in this league.
"For us to feel we're on par and just as good as them... shows how far we've come as a team."
Swansea had suffered their first defeat of the season in their previous outing which was a 1-0 loss at Watford.
Monk was pleased his side reacted with an improved display against Everton, managed by former Swansea boss Roberto Martinez.
Media playback is not supported on this device
"That was more us. We were at it," said Monk. "I spoke to the players to remind them that's what we're exactly about.
"I thought it was a night and day performance compared to last week."


Criticism of the labour ward which handles births in west Wales has been accepted by the health board in charge.

A report said the ward at Glangwili Hospital in Carmarthen, Carmarthenshire, was 'not fit for purpose' to handle extra births.
Hywel Dda boss Steve Moore said he was committed to making improvements.
A meeting was held on Thursday to discuss the report into changes that saw care for complex births moved to a different hospital.
Following a reorganisation of maternity services in Pembrokeshire and Carmarthenshire, the unit in Carmarthen now handles more births than before.
The report, led by the Royal College of Paediatrics and Child Health, looked into the impact changes have had on patients and staff since more complicated births were moved from Withybush Hospital in Haverfordwest, Pembrokeshire.
Despite the criticism of the ward, the report found the actual care provided had been good and board members welcomed findings that patients' experiences had been "overwhelmingly positive".
Chief executive Mr Moore told the meeting in Llanelli, Carmarthenshire, that the board is pressing ahead with the expansion of Glangwili's labour ward.
He said, due to the short turnaround time in which the changes were made, it was always accepted that the infrastructure was unacceptable.
"The best was done with what we had at Glangwili and the priority was to have a safe service," he added.
The timescale for the ward expansions is not yet known and further discussions are needed with the Welsh government regarding funding.
Health Minister Mark Drakeford said: "I welcome the review, which provides further reassurance to people in Pembrokeshire and Carmarthenshire that these services are safe and have led to improved outcomes for mothers and babies.
"Where the review team has made recommendations in relation to elements of the safety net, which I required to be put in place, I accept them all."


The leader of Venezuela's National Assembly, Diosdado Cabello, on Monday accused the United States of kidnapping two nephews of first lady Cilia Flores.

The two were arrested in Haiti last week and taken by the US Drug Enforcement Administration to New York and charged with drug trafficking.
Mr Cabello said the arrests were "irregular" and had been carried out to damage the governing party ahead of legislative elections on 6 December.
US-Venezuelan ties have been fraught.
The two nations have not exchanged ambassadors since 2012 and Venezuela regularly accuses the US of trying to destabilise the Latin American country.
Mr Cabello, a powerful figure in the governing United Socialist Party (PSUV), was the first official to speak out about the arrest of the two men last Tuesday.
In an interview with Venezuelan TV, he said that he did not consider it an arrest.
"A plane went to Haiti with six people and they kidnapped two," he said referring to the fact that the four other people on board had not been charged.
"It's the DEA's normal procedure to kidnap lots of people," he alleged.
The aim of the arrests, he added, was "to hurt the Bolivarian revolution" in the midst of an election.
Some polls suggest that the governing coalition could lose its majority in the National Assembly for the first time in 16 years on 6 December.
Efrain Antonio Campo Flores, 29, and Franqui Flores de Freitas, 30, were charged with one count of drug trafficking on Thursday.
The two are nephews of first lady Cilia Flores and travelled on diplomatic passports.
Mr Cabello said they had acted independently: "These are grown men who can do what they want in life."
Their indictment accuses the men of conspiring to import "five kilograms [11 lb] and more of mixtures and substances containing a detectable amount of cocaine" to the US.
But Reuters said a US law enforcement source had told the news agency that the two men had allegedly planned to smuggle a much larger amount, 800kg, to the US.
Lawyers for the two men said they would plead not guilty at their next court appearance.


Pope Francis has urged Mexico's leaders to provide "true justice" to citizens hit by drug violence in the country.

Speaking on the first day of his five-day visit to Mexico, he said drug trafficking was a cancer that devoured and destroyed Mexican society.
He also said that the Catholic Church in Mexico must do more than just condemn drug trafficking.
Earlier, he and Russian Orthodox Patriarch Kirill called for restored Christian unity during talks in Cuba.
The meeting was the first between a Pope and a Russian Church head since the Western and Eastern branches of Christianity split in the 11th Century.
The Pope received a red carpet welcome at the National Palace, the first time a pope had been received there.
Later on Saturday he held a mass in the city at the Basilica of the Virgin of Guadalupe, in front of tens of thousands of people.
The basilica houses the image of a dark-skinned Virgin Mary on a piece of fabric.
In his earlier address the pontiff addressed government leaders and made further comments to Mexican bishops.
In his remarks, he warned that a society driven by greed and selfishness was fertile terrain for corruption, violence and drug trafficking.
Pope Francis said the scale of the drug problem meant the Church could not hide behind "anodyne denunciations" and urged Mexican bishops to tackle it instead with "prophetic courage".
Correspondents say his speech uncomfortably exposed the church's shortcomings and generated only lukewarm applause, with just a handful of bishops standing in ovation.
Mexican President Enrique Pena Nieto responded by saying "the Pope's causes are also Mexico's causes".
Many people I have spoken with today have welcomed the Pope's visit because he is prepared to say things that the government often appears to ignore.
For many Mexicans, the highlight of the Pope's trip is his visit to the basilica, Mexico's patron saint and a regional icon. People here say they are so proud that he has taken the time to pay his respects.
Lining up along the route to the Basilica, I spoke to one woman who had come from Los Angeles to see the Pope - two years ago she had been given six months to live after being diagnosed with cancer. But she survived, she says, thanks to a miracle.
Another young lady came from Puerto Rico - she had just turned 15 and thought this was the best way to celebrate.
Mexico has the world's second-largest Catholic population and his speech was cheered by crowds standing outside the palace in the city's historic Zocalo square.
The BBC's Katy Watson in Mexico says many Mexicans have a soft spot for this Pope because as a fellow Latin American, they feel he understands them and gives them a voice, especially at a time when many are disillusioned with endemic corruption and violence in the country.
Catholics believe the image became imprinted after the Virgin Mary appeared before an indigenous Mexican in 1531.
He will also visit some of Mexico's poorest and most violent regions.
On Sunday, he will lead an outdoor mass in Ecatepec, a Mexico City suburb that has seen a spate of murders of women.
He will also travel to the country's poorest state Chiapas, the western state of Michoacan where farmers have formed vigilante groups to fight drug cartels.
Also on his itinerary is Ciudad Juarez on the US border, a city so beset by drug violence that it was at one point known as the murder capital of the world.


Everton are in talks with Dynamo Kiev to sign Ukraine forward Andriy Yarmolenko for around £14.25m.

Toffees boss Roberto Martinez said the 25-year-old would be a success in England after he scored in Kiev's Europa League win over Everton.
Club officials travelled to Monaco to discuss the transfer with their Kiev counterparts this week.
Martinez is also pursuing a £5m deal for River Plate's Argentine central defender Ramiro Funes Mori, 24.
The signing of Mori would be as an addition to their resources rather than a potential replacement for England's John Stones, who they insist will not be sold after rejecting a £30m offer from Chelsea.
Everton are unbeaten after two Premier League matches this season and entertain Manchester City on Sunday.


United Continental has appointed an acting boss after its chief executive suffered a heart attack last week.

Brett Hart, the airline's general counsel, will take over from Oscar Munoz immediately.
Mr Munoz suffered a heart attack shortly after taking up the role.
The world's second-largest airline is due to report third-quarter results on Thursday, with strong profits expected by analysts.
The chairman, Henry Meyer, said: "Brett has taken on increasing responsibility beyond general counsel over the last few years in the operations and customer-facing areas of the company."
Mr Hart, 46, joined United five years ago from Sara Lee and was previously was a law firm partner and a lawyer for the US Treasury.
The airline did not say how long Mr Munoz would be on medical leave, saying it was "too soon to know the course of treatment and timing of recovery".
The lack of information given about Mr Munoz's condition has attracted criticism.
Vicki Bryan, an analyst for bond research firm Gimme Credit, said that United's statement last week about the chief executive's health was surprisingly sparse and raised more concerns than it answered.
She said that United needed to be more open, "particularly in light of United's substantial management upheaval in recent months".
Mr Munoz took over at United only last month after Jeff Smisek was forced out for allegedly making deals with public officials in New York and New Jersey.
It has been accused of maintaining unprofitable flights that were popular with politicians in return for favourable government subsidies and better airport transit deals.
Mr Munoz had been appointed chief executive in a bid to clean up the company and deal with a litany of staff and customer complaints.
The company had also struggled under Mr Smisek to merge the operations of the former United and Continental airlines after the two airlines merged in 2010.
United Continental shares have fallen 15% this year and closed on Monday at $56.75, valuing the company at just over $21bn (Â£13.5bn).


(Close) The Dow Jones edged to another record high on Wednesday, closing at a record high of 18,030 after a shortened trading session.

On Tuesday, the index had breached the 18,000 points mark for the first time.
The index rose 0.03%, as investors were further encouraged by news that the US economy had grown at its fastest rate in 11 years.
However the S&P 500 fell marginally, by 0.01% to 2,082, while the Nasdaq gained 0.17%, closing at 4,773.
Trading in New York ended early, due to the Christmas holidays.
US stocks have been gaining ground since the country's central bank, the Federal Reserve, said last week that it would be "patient" before raising interest rates.
In further good news for the US economy, data released on Wednesday found that the number of Americans claiming unemployment benefits fell by 9,000 to 280,000 last week.
Markets in the US were also buoyed by a further fall in the price of oil, which is seen as good news for the country's consumers.
Brent crude dropped below $60 per barrel once again, falling by almost 3% to $59.96.


Reading held on with 10 men as they beat fellow Championship side Brighton in the EFL Cup third round.

Stephen Quinn's close-range finish from a corner gave them a first-half lead but defender Tyler Blackett was sent off before half-time for a late tackle.
Jaap Stam's side pressed on after the interval and John Swift doubled their lead with a right-foot strike.
The Royals then survived a nervy finish after Tomer Hemed pulled a goal back for Brighton with five minutes left.
Blackett's dismissal made him the second Reading player in the space of four days to be shown a red card following Garath McCleary's sending off against Barnsley in the league on Saturday.
The former Manchester United player tangled with midfielder Sebastien Pocognoli, who was making his Brighton debut, and referee Lee Probert had no hesitation in showing him a straight red card.
Albion's former Reading loanee Glenn Murray struck the crossbar moments after Blackett's departure, but the hosts were up against it once Swift netted his second goal in as many games.
Murray did lay on Hemed's consolation, but Brighton were unable to add to the striker's effort.
Brighton boss Chris Hughton:
"We conceded two poor goals against a side that started better than us. We found it difficult to get close.
"We weren't able to take our chances. In that period it wasn't the lack of trying, but we didn't get enough bodies in the box."
Reading assistant manager Andries Ulderink:
"We started very well when it was 11 against 11 - it was a little bit like Saturday. We dominated the game and created a couple of great chances.
"I must be honest, Brighton had a couple of good chances too, but overall we were very happy with the 11 v 11 situation and we deserved our first goal.
"You hoped we would get the second goal in the first half. But then the sending off and the game changes... again.
"We worked very hard. And it was hard work, defending more than playing the football we like to play."
Match ends, Brighton and Hove Albion 1, Reading 2.
Second Half ends, Brighton and Hove Albion 1, Reading 2.
Corner,  Brighton and Hove Albion. Conceded by Liam Kelly.
Corner,  Brighton and Hove Albion. Conceded by Danzell Gravenberch.
Attempt blocked. Sam Baldock (Brighton and Hove Albion) right footed shot from outside the box is blocked.
Jiri Skalak (Brighton and Hove Albion) is shown the yellow card for a bad foul.
Foul by Jiri Skalak (Brighton and Hove Albion).
Joseph Mendes (Reading) wins a free kick in the attacking half.
Rob Hunt (Brighton and Hove Albion) wins a free kick in the attacking half.
Foul by Callum Harriott (Reading).
Corner,  Brighton and Hove Albion. Conceded by Tennai Watson.
Attempt missed. Oliver Norwood (Brighton and Hove Albion) right footed shot from outside the box is high and wide to the right.
Attempt missed. Jamie Murphy (Brighton and Hove Albion) right footed shot from outside the box is close, but misses to the left.
Attempt saved. Connor Goldson (Brighton and Hove Albion) header from the centre of the box is saved in the centre of the goal.
Oliver Norwood (Brighton and Hove Albion) is shown the yellow card for a bad foul.
Foul by Oliver Norwood (Brighton and Hove Albion).
Joseph Mendes (Reading) wins a free kick in the attacking half.
Steve Sidwell (Brighton and Hove Albion) wins a free kick in the attacking half.
Foul by Joseph Mendes (Reading).
Goal!  Brighton and Hove Albion 1, Reading 2. Tomer Hemed (Brighton and Hove Albion) left footed shot from the left side of the six yard box to the centre of the goal. Assisted by Glenn Murray.
Joseph Mendes (Reading) wins a free kick in the defensive half.
Foul by Steve Sidwell (Brighton and Hove Albion).
Attempt missed. Glenn Murray (Brighton and Hove Albion) header from very close range is close, but misses to the right.
Attempt missed. Tomer Hemed (Brighton and Hove Albion) header from the centre of the box is close, but misses to the left.
Steve Sidwell (Brighton and Hove Albion) is shown the yellow card for a bad foul.
Foul by Steve Sidwell (Brighton and Hove Albion).
Joseph Mendes (Reading) wins a free kick in the attacking half.
Stephen Quinn (Reading) wins a free kick in the attacking half.
Foul by Oliver Norwood (Brighton and Hove Albion).
Attempt saved. Callum Harriott (Reading) left footed shot from outside the box is saved in the centre of the goal.
Tennai Watson (Reading) wins a free kick in the attacking half.
Foul by Oliver Norwood (Brighton and Hove Albion).
Substitution, Reading. George Evans replaces John Swift.
Substitution, Brighton and Hove Albion. Jamie Murphy replaces Elvis Manu.
Attempt blocked. Tomer Hemed (Brighton and Hove Albion) right footed shot from the centre of the box is blocked.
Attempt saved. Steve Sidwell (Brighton and Hove Albion) header from the centre of the box is saved in the bottom left corner.
Elvis Manu (Brighton and Hove Albion) wins a free kick in the attacking half.
Foul by Callum Harriott (Reading).
Rob Hunt (Brighton and Hove Albion) wins a free kick on the left wing.
Foul by Joseph Mendes (Reading).


A man accused of murdering teenager Becky Watts has denied taking any pleasure in dismembering her body.

Nathan Matthews, 28, admits killing his 16-year-old stepsister but denies murder and conspiring to kidnap her.
Under cross examination, prosecutor William Mousley asked him how he felt about "cutting her body into pieces" with a circular saw.
Mr Matthews told Bristol Crown Court he "did what I had to".
Mr Mousley asked if his attitude changed after he killed her, to which he replied: " I didn't have any attitude after."
Referring to 15 stab wounds delivered to Becky's abdomen after her death, the prosecutor asked Mr Matthews: "What about how you treated her after you killed her?"
He responded: "That's got nothing to do with how I felt about her."
Mr Matthews admitted being attracted to teenage girls and watching pornography after having sex with his long-term girlfriend Shauna Hoare, 21.
The defendant, who is accused of murdering Miss Watts in a sexually-motivated kidnap plot with Ms Hoare, denied he fancied his stepsister.
He admitted he did not like the teenager because she was rude to his mother, Anjie Galsworthy, her stepmother, but refuted suggestions he had wanted to harm her.
Earlier, Bristol Crown Court was told Mr Matthews denied downloading a pornographic film found on his laptop about the rape of a young girl.
He told the jury he would not have downloaded or watched the film and would have deleted the 17-minute clip "straight away".
Mr Matthews said he looked at online pornography "at least every two days" with his interest starting with magazines before moving on to internet videos.
However, Mr Matthews insisted his girlfriend did not share his interest in pornography.
Mr Matthews' defence lawyer, Adam Vaitilingam QC questioned him about a series of text and Facebook messages in which he and Ms Hoare talked about kidnapping teenage girls.
Mr Matthews said the messages were "just taking the mick basically" and not serious.
He said he was "open" with her about if he found someone attractive.
"Sometimes she would catch me looking and she would slap me, or smack me, not violently and tell me off, saying I'm looking at her or whatever," he said.
Mr Matthews also told jurors he had a "fear" that Ms Hoare would leave him.
He had previously admitted there was violence in his relationship with his partner and he had "anger issues" and would "bottle things up" and would "flip" when he got "overwhelmed".
However, he denied that when he tried to knock Becky out on the day he killed her at her home in St George, Bristol, it had been a "violent attack".
Becky went missing on 19 February and her body was found in a shed several days later.
Asked how he was able to dismember Becky, Mr Matthews told the court: "It was like a bad dream, it is hard to explain exactly."
Shortly afterwards he said he realised he needed to remove her remains from the home he shared with Ms Hoare because he "knew the police were coming".
Asked why he finally confessed to the killing after days of repeatedly lying about being involved in Becky's disappearance, Mr Matthews said her family "deserved to know the truth and have a burial and say goodbye".
Mr Matthews, of Hazelbury Drive in Warmley, South Gloucestershire, also admits perverting the course of justice, preventing lawful burial and possessing a prohibited weapon.
Ms Hoare, 21, of Cotton Mill Lane, Bristol, denies murder and conspiracy to kidnap, a weapons charge, perverting the course of justice and preventing a burial.
Two other men, Donovan Demetrius, 29, and James Ireland, 23, deny assisting an offender.
The trial continues.


Former Real Madrid president Ramon Calderon has backed Real Madrid's reported attempt to extend Gareth Bale's contract.

The Welshman has three years left on his current deal and Real hope to keep him until 2021, when he will turn 31.
"It's quite reasonable that they are offering him the contract extension," said Calderon.
Bale became the top British scorer in La Liga against Sevilla on Sunday, taking his tally to 43.
It came during a season that began with Bale being linked with a return to the Premier League at Manchester United.
Calderon says the interest of clubs such as that is understandable, but as player, club and fans are happy, he does not "see any reason for him to leave Real Madrid".
But he also doubts Real would be tempted to sell, even if rivals would be prepared to "break the bank".
"We are not a selling club. We are a buying club. We've got him and we'd like to have him for a long, long time," Calderon said.
"It's not unusual. No doubt a lot of clubs in Europe would like to have him. He's a top player.
"He's showing that here with Real Madrid. He's scoring goals and playing quite well.
"He did it very well against Sevilla and everyone here is very happy, so it's quite reasonable that they are offering him the contract extension."
The Cardiff-born player left Tottenham Hotspur for Real in a world record £85m move in 2013.
He has since combined starring for Real with helping Wales to reach Euro 2016, their first major finals since the 1958 World Cup.
But Bale will miss Wales' warm-up friendly against Ukraine on Thursday, 24 March at Cardiff City Stadium and the trip to Ukraine that follows four days later.
A calf injury has dogged Bale this season, prompting Wales manager Chris Coleman and Real counterpart Zinedine Zidane to agree he would stay with his club for the time being.
Calderon believes club and country have done the right thing to help Bale return to peak fitness "little by little, step by step to be in the best shape at the end of the season for Real Madrid and for Wales".
The impending birth of Bale's second child has also contributed to the decision for Bale to be absent from Wales duty.


A pilot project asking tourists to put money into communities they visit in Snowdonia has raised enough to train nearly 50 young people in conservation and outdoor skills, organisers say.

Snowdonia Giving asks businesses in the national park to press visitors for a small contribution to add to bills.
Launched six months ago, so far 28 companies have signed up.
Nearly Â£3,500 in donations has been raised, with most going to a Snowdonia Society training programme.
John Harold, director of the society, said: "This is the Snowdonia Society's 50th anniversary and this is a real birthday present for us.
"What it does is it allows us to complete the circle of giving - visitors and locals giving voluntarily to these local businesses.
"We take our volunteers out to help look after Snowdon and the surrounding area, and this funding gives us the chance to give something back to those volunteers."
The Snowdonia Giving project cash will be used to give 48 young people the chance to learn both conservation and mountain skills, which will go towards an accredited qualification.
"What we find is, there are plenty of young people who are willing to come out and volunteer, many of whom would like to work outdoors, some of whom want to work in conservation," added Mr Harold.
"The problem these days is getting experience and getting that experience on your CV - and this is one of the things we can help them with."
Josh Feilden runs one of the firms that has been taking part in the pilot project, running a sustainable bunkhouse lodging business called Crashpad Lodge on the slopes of Snowdon.
He said visitors staying with him were eager to take part.
"It is surprising how much impact and how involved they want to be in it," he said.
"If they know they are putting money towards a good contribution, which it is going to go to, they are more than happy."
Another business owner, Ross Worthington, who runs the outdoor training specialists Raw Adventures with his wife Kate, who is also chairwoman of the British Mountaineering Council in Wales.
He is convinced the "exciting" project can expand and deliver even more for the communities across Snowdonia.
"We have a new season ahead, lots more engagement with people, with other companies, and it's looking like a really promising scheme," he added.
The project is due to run until October this year, with the social enterprise Arloesi Gwynedd Wledig pulling together all the strands of the scheme for now.
Its co-ordinator Rhian Hughes added: "It has been well received by visitors out there, because it is a voluntary donation and not something that is forced on the visitor, and people are quite happy to donate."


Three men convicted of running a 'crystal meth' laboratory from a bathroom failed to attend court for sentencing

Mohammed Chernarli, 31, of Mary Hill Road, Glasgow, and Mehdi Esmalpoor, 39, of Farm Drive, Rawmarsh, were sentenced to ten years in jail for drugs offences at Sheffield Crown Court on Wednesday.
Nehdi Tajabidi, 32, of no fixed address, was jailed for seven years.
The lab was in a property in Rotherham and police are now hunting the trio.
South Yorkshire Police said it was the first case of methamphetamine - known as crystal meth - production they had dealt with in the region.
The lab was set up in a property Tajabidi rented on Broom Valley Road. Officers found the three had travelled around the country to "purchase large quantities of chemicals and other equipment".
Esmalpoor and Chernarli were arrested on 23 May 2016, with a search of Tajabidi's address the following day finding face masks, plastic drums, filters, mixing utensils and sieves as well as paperwork.
The three men denied the charges against them but Chernarli and Esmalpoor were found guilty of conspiracy to produce a class A drug after a two-week trial.
Tajabidi was convicted of producing a class A drug.
Det Sgt Anna Sedgwick, who led the investigation, said: "Not only were they committing serious crime, they were putting the lives of innocent people, living close to the property at risk because of the dangerous nature of the chemical processes involved.
"We will actively pursue them to ensure they serve their sentences behind bars for their crimes."
Methamphetamine is a highly-addictive stimulant which is sold as crystals, pills or powder.


Carbon dioxide escaping from the depths of the ocean heralded the end of the last Ice Age, a study suggests.

Its release into the atmosphere drove the shift towards a warmer period, according to scientists at the University of Southampton.
The research, published in Nature, is based on analysing chemical signals in the shells of ancient plankton.
The world's oceans absorb about a third of the atmospheric carbon dioxide from burning fossil fuels.
Scientists predict that as the oceans warm, their ability to absorb atmospheric carbon dioxide will be reduced, potentially leading to faster global warming.
Dr Miguel Martinez-Boti, who co-led the study, said the findings showed that there was a link between very high concentrations of dissolved carbon dioxide in parts of the ocean and rises in atmospheric carbon dioxide at the end of the last Ice Age.
"This increases our understanding of the role of the ocean in the carbon cycle," he told BBC News.
"The ocean is a much bigger reservoir for carbon than the atmosphere, so how the ocean interacts with the atmosphere is very important."
The research is based on analysis of ancient marine organisms that lived on the surface of the oceans thousands of years ago.
The acidity of the seawater they inhabited can be gleaned from the chemical signature left in their shells, which in turn allows the amount of carbon dioxide in the water to be calculated.
Co-researcher, Dr Gavin Foster, said: "Just like the way the oceans have stored around 30% of humanity's fossil fuel emissions over the last 100 years or so, our new data confirms that natural variations in atmospheric carbon dioxide between ice ages and warm interglacials are driven largely by changes in the amount of carbon stored in our oceans."
The waters around Antarctica - known as the Southern Ocean - are thought to play a key role in the movement of carbon between the atmosphere, land and sea.
Scientists need to understand more about how the ocean affects the carbon cycle to gain a better insight into climate change.
According to the Intergovernmental Panel on Climate Change, about 40% of carbon dioxide emissions since pre-industrial times have remained in the atmosphere.
The ocean has absorbed about 30%, causing ocean acidification.


Bargoed have been promoted to the expanded Welsh Premiership for next season.

They joined Merthyr and Swansea in confirming their rise to Welsh rugby's second tier with a 17-8 win over Pontypool.
There is no relegation from the Premiership this season.
Pontypool hope to be among the four teams going up to a division from which there will be no relegation for the next three seasons.


England spinner Danielle Hazell has been named Lancashire Thunder captain as part of the player allocations for the Women's Cricket Super League.

All 18 centrally contracted England players will appear in the competition, running from 10 August to 1 September.
Hazell, 28, moves from Yorkshire Diamonds, with all-rounder Danielle Wyatt, 25, the only other England player to change clubs.
Wyatt, who played for Lancashire last season, has joined the Southern Vipers.
Meanwhile, four overseas players are set to make their Super League debuts, with two more to be announced at a later date.
South Africa's Sune Luus and New Zealand's Sophie Devine have joined Yorkshire, West Indies all-rounder Hayley Matthews has been allocated to Southern Vipers, while New Zealand bowler Lea Tahuhu has signed for Lancashire Thunder.
England wicketkeeper-batter Sarah Taylor, 27, has been named in Lancashire's squad after taking a break from cricket to deal with anxiety.
(all England unless stated)
Lancashire Thunder: Kate Cross, Danielle Hazell, Sarah Taylor, Jess Jonassen (Aus), Amy Satterthwaite (NZ), Lea Tahuhu (NZ).
Loughborough Lightning: Georgia Elwiss, Amy Jones, Beth Langston, Kristen Beams (Aus), Ellyse Perry (Aus), Elyse Villani (Aus).
Southern Vipers: Tash Farrant, Danielle Wyatt, Suzie Bates (NZ), Hayley Matthews (WI), Dane van Niekerk (SA).
Surrey Stars: Tammy Beaumont, Alex Hartley, Laura Marsh, Natalie Sciver, Rene Farrell (Aus), Marizanne Kapp (SA).
Western Storm: Heather Knight, Anya Shrubsole, Fran Wilson, Rachel Priest (NZ), Stafanie Taylor (WI).
Yorkshire Diamonds: Katherine Brunt, Jenny Gunn, Lauren Winfield, Sophie Devine (NZ), Sune Luus (SA), Beth Mooney (Aus).


Benni McCarthy says his former Porto team-mate Bruno Alves is the perfect fit for Pedro Caixinha's Rangers.

Portugal international centre-back Alves became Caixinha's first signing as Rangers boss last week.
And McCarthy, who was at Porto when Alves was breaking through, insists he will prove a shrewd capture.
"He'll bring something different to Rangers and beef up their defence, so he's the right defender to bring in," McCarthy told BBC Scotland.
"Bruno has a wealth of experience, he's played at the highest level and he's a winner.
"He'll give them a bit more stability at the back, more bite, he's a leader and he'll organise that defence. His communication won't be a problem because his English is very good.
"Bruno is very composed and calm on the ball so he will help the way the manager wants to play things from the back. Bruno is the perfect fit for what the manager is trying to bring to Rangers right now."
As impressed as McCarthy is by the signing of Alves, he reckons Rangers will have to bring in a few more players of a similar calibre before they will be in a position to seriously challenge Celtic.
Brendan Rodgers' side finished 39 points ahead of the Ibrox outfit as they won the Premiership and went on to secure an unbeaten domestic treble.
"I'm not too sure he'll be able to change that because Celtic are so strong," McCarthy said. "It's going to take more than one Bruno Alves in that Rangers side to take the title from Celtic, but if they sign a couple more players like Bruno, then I think Rangers are in with a shout of giving Celtic a run for their money."
Alves began his career at Porto and had various loan spells before becoming a first-team regular, winning nine major honour with the Dragons.
He joined Zenit Saint Petersburg for £18m in 2010, with whom he won two league titles and the Russian Super Cup before joining Turkish giants Fenerbahce for £4.5m in 2013.
There he won one league title and the Turkish Super Cup and then in 2016 he moved to Italian Serie A side Cagliari, from whom he joined Rangers.
Part of the Portugal squad that won the European Championships in 2016, Alves has 89 caps for his national side, and McCarthy is convinced the defender has a lot more football left in him, despite being 35 years old.
"He's a fitness fanatic and looks after himself exceptionally well so that will keep him going for a few years," he added. "The experience that he'll bring, Rangers really need it from what I've seen last season."
And the South African has assured Rangers fans that while Alves is the type of robust defender they need, he will not be a regular in the notebooks of Scotland's referees.
"Everybody has a bit of temper in him but Bruno will choose his moments wisely, he's a senior player in that squad and he has to be an example," McCarthy added.
"He can't do silly things that leave the team hanging because they will depend on his experience and to guide the young players. I don't think he'll end up in hot water too many times but he'll bring some fight to that Rangers defence."


Homophobic bullying in school can lead to thousands of children changing their career plans, Education Secretary Nicky Morgan has warned.

Ms Morgan said those who were bullied often retreated from school life, causing repercussions in later life as they choose "safety" over "happiness".
She said while bullying had decreased overall, social media provided an "anonymous space for abuse".
But she remained confident that homophobic bullying would be banished.
Speaking at a conference at Brighton College on Tuesday, she said: "Homophobic bullying affects every young person seen as 'different' and many suffer homophobic bullying regardless of their sexual orientation.
"The fact is bullies will target anyone who doesn't conform to their own views of gender stereotype. I'm talking about the girl who likes rugby, the boy who doesn't like football.
"The nature of bullying has changed considerably, with social media providing an anonymous space for abuse and ridicule."
She went on: "We must not under-estimate the importance of homophobic language which has a huge effect on young people.
"The derogatory use of the word gay is offensive and unacceptable. The impact of homophobic bullying can be devastating.
"A victim is likely to see their grades suffer, experience health issues and they might even consider taking their own life. This is unacceptable."
Ms Morgan said homophobic bullying needed to be tackled at its root.
"I firmly believe that we will see a future where homophobic, biphobic and transphobic bullying are banished, but we are not complacent."


A scrambler bike rider has died after being seriously injured in a crash in Belle Vale, south Liverpool.

Merseyside Police were called to reports of a collision between a Hyundai car and a scrambler bike at the junction of Belle Vale Road and Lee Vale Road at 19:10 BST on Thursday.
The rider was taken to Aintree University Hospital but was pronounced dead a short time later.
The Hyundai driver was uninjured and assisted with inquiries, police said.
Officers are appealing for witnesses. Belle Vale Road was closed between Beresford Road and Halewood Road for several hours following the crash.


A jet pilot killed in a crash did not report problems with his aircraft to engineers, fearing it would delay his colleagues, an investigation found.

Maj Taj Sareen died when his FA-18C US Marine Corps jet came down in Cambridgeshire in October 2015.
The accident investigation report, seen by the BBC, said there was evidence his navigation system was "not 100%".
Maj Sareen, 34, told colleagues about the issues but did not tell the maintenance team, the report said.
The fighter plane, flown solo by Maj Sareen, crashed at Temple Farm in Redmere shortly after taking off from RAF Lakenheath in Suffolk.
He had made comments to three individuals which "strongly suggest that the navigation system aboard his aircraft was not 100%" before taking off from Lakenheath.
The combination of "stress from wanting to get home", "stress of not wanting to be the reason for an additional delay", and Maj Sareen's "confidence to manage the problem after successfully flying the past two legs" led him to keep the issue from the maintenance staff, the report's author said.
"The better decision would have been to debrief Maintenance Control about the problem and let them troubleshoot the aircraft."
On one occasion, before arriving at RAF Lakenheath, Maj Sareen told a fellow pilot that if they encountered poor conditions he might need to "join up" in order to "punch through the weather".
He was asked by his colleague whether there was "anything the matter" and he responded: "No, I just may need to join up".
Later, at RAF Lakenheath he was asked whether he had any issues. He responded, the report states, by saying "The inertial navigation system, but it is good."
When the maintenance controller tried to find what exactly was wrong, Maj Sareen replied: "Don't worry about it, the jet is good."
The report also found the weather on the day Maj Sareen died had a "major impact" by forcing him to use his standby flight instruments.
"If the weather conditions had been clear," the report's author said, "I believe Maj Sareen would have been able to adequately deal with the system problems/failure modes of the INS (inertial navigation system) and would have been able to avoid impact into the ground."


Two cars were damaged when a troubled flood prevention scheme in Fife was hit by more problems during the weekend's heavy rain.

Paul Starks said he felt "sick to his stomach" when he discovered a wall and railings had toppled onto his two sports cars in Dunfermline.
A drain had become blocked by debris, leading water to spill over, causing the wall in Coal Road to collapse.
Fife Council said it was disappointed and frustrated at the flooding.
More than Â£30m has been spent on the town's flood prevention project - 10 times the original estimate.
Mr Starks said: "My friend came through to me at about 04:15 and said there had been a large bang outside.
"I looked out and noticed the railings had come down around the cars.
"I came out and looked and realised the cars were badly damaged. Water was spewing out of the wall and I thought, not again.
"This is the second time it has flooded.
"I love my cars, it's devastating. It makes you feel sick inside and angry."
Pat Callaghan, Fife Council's executive spokeswoman for environment and transport said: "We're disappointed and very frustrated by the flash flooding event at Pittencrieff Park as, of course, nearby residents will be too.
"In addition to the planned weekly Friday check and clearance of the culvert grill, once we received the severe weather warning, we again checked and cleared the culvert trash screen at the bottom of the park on Saturday as well.
"Unfortunately the exceptionally heavy rain carried such an immense volume of debris down the burn from the park that it choked the trash screen to both culverts during Saturday night.
"The burn overtopped, the water was trapped within the park and eventually caused a section of wall to collapse at Coal Road.
"The flooding was reported to us at 4am on Sunday and an emergency response team immediately went out and cleared the blockage in very difficult circumstances.
"Fortunately the flooding didn't affect any properties, but two cars parked on the footway were damaged and the road was closed to allow the clear up operation."
The road has now re-opened.


There were an estimated 3.6 million cases of fraud and two million computer misuse offences in a year, according to an official survey.

The Crime Survey for England and Wales included the offences for the first time in its annual report, which covered the year to September.
Separate figures recorded by police showed an 8% rise in offences overall.
The Office for National Statistics said crime recording improvements meant the police figures could not reveal trends.
John Flatley, from the ONS, said: "In the past, burglary and theft of vehicles were the high-volume crimes driving trends but their numbers have fallen substantially since then.
"When the crime survey started [35 years ago], fraud was not considered a significant threat and the internet had yet to be invented.
"Today's figures demonstrate how crime has changed, with fraud now the most commonly experienced offence."
Sir Tom Winsor, the Chief Inspector of Constabulary for England and Wales, told the You and Yours programme on BBC Radio 4 that many frauds went undetected and a great deal never got reported to the police.
"The amount of fraud that is taking place now is probably in epidemic proportions," he added. "The police are having to work very, very hard to keep up with even the ones they know about.
"The capability at police forces is quite skeletal and that needs to change and change a great deal."
The National Police Chiefs' Council lead for crime and incident recording, Chief Constable Jeff Farrar, said forces were working with the Home Office, police and crime commissioners, and industry experts to develop new tactics to fight cybercrime.
"The ability to commit crime online demonstrates the need for policing to adapt and transform to tackle these cyber challenges," he said.
There are two broad categories of "computer misuse" crimes:
Des Dillon, who runs a student accommodation company, told BBC Radio 5 live he had become a victim of cybercrime after being tricked into giving away information that led to the loss of £230,000 from his company bank account.
"Over a couple of phone calls, he asked me for various [information], third number, fourth number and ninth letter, that type of thing, and obviously he put it together very quickly," he said.
"We've recouped [over] £100,000, we're outstanding £113,000. We managed to block and recoup the balance and now we're fighting [with the bank] about the other portion of it."
Katy Worobec, director of Financial Fraud Action UK, said banks had managed to stop £6 in every £10 targeted by criminals in the first half of 2016, but that people needed to be aware of the threat.
"While the industry invests in new systems to stop the criminals, fraudsters are increasingly targeting people directly," she said.
"Customers and businesses need to be alert to the threats posed by the continued rise in impersonation scams attempting to trick them out of their personal details and money."
All but one police force - Nottinghamshire - recorded an increase in violent crime last year.
The largest percentage increases were logged by Northumbria Police, up 95%, Durham Police (73%), West Yorkshire Police (48%) and Avon and Somerset Police (45%).
"Violence against a person" offences now include revenge pornography and internet trolling, which the ONS believes contributed towards the 22% rise from last year.
Police recorded 695 homicides in the 12 months to the end of September - 125 more than the previous year.
This included the 96 cases of manslaughter resulting from the 1989 Hillsborough disaster, because the inquest verdicts were returned during the last recording period. Excluding those deaths, there was still a 5% rise in homicides.
The figures for fraud and computer misuse show how behind the curve our statistics have fallen.
It is undeniable that the overall level of crime has been falling across the industrialised world for a quarter of a century, as report after report on our experiences show we are less and less likely to be victims.
However, while traditional crimes such as burglary and theft fall, criminal gangs look for new opportunities by exploiting gaps in online and banking security.
The brutal fact is that nobody knows how big the problem is. It is massively underreported and, outside of London, it is arguable that national policing hasn't yet got the skills or the expert manpower it needs.
A good detective must have the skills to catch a burglar or killer, but very few of them have the skills to analyse screens of information and find criminals who have taken the digital road to a life of crime.
While there was a 23% increase in attempted murders, the ONS said this may have been "influenced" by improved crime recording.
Recorded offences involving a knife or sharp weapon hit their highest level for five years, up 11% up on the previous year to 30,838.
There was a 7% rise in gun crime, which BBC home affairs correspondent Danny Shaw said had been mainly driven by an increase in offences involving handguns and shotguns, but added that some of the increase might be accounted for by better firearm identification processes.
Metropolitan Police Commissioner Sir Bernard Hogan-Howe said the crime figures were akin to "the warning lights flashing."
Policing minister Brandon Lewis said reforms of the police were "working" and the offences "traditionally" measured by the survey - before the inclusion of fraud and cybercrime - had fallen by 370,000.
Mr Lewis said the government was investing £1.9bn in cybersecurity over five years, adding that the survey helped inform efforts.
"Understanding more about these crimes will help us continue to protect those who are vulnerable," he said.


Actress Sadie Frost has told the High Court that having her phone hacked by Mirror Group journalists made her life a "living hell".

Describing the experience as the "lowest of the low", the 49-year-old actress and businesswoman said she did not know who to trust.
In 2003, she had a breakdown and went into hospital, which was a "terrible" incident but ended up in the papers.
Ms Frost is among eight high-profile figures claiming damages for hacking.
She told the court: "Your father is dying, you are going through divorce, you have postnatal depression, you are in and out of hospital, my baby was ill, he was born premature.
"I was at breaking point, I could not sleep, or eat, and I did not know who to trust as information kept getting into the media.
"I needed my loved ones around me. I was very upset, I was a very, very unhappy person.
"Every time I turned to someone to confide in them, it ended up in the newspapers, which added to my distress and trauma."
"I couldn't go and sit with my mum and have a cup of tea because I thought she was selling stories. I didn't trust my own mother."
Ms Frost said her separation from fellow actor Jude Law was very difficult.
"I thought it might be Jude, trying to make me look bad for custody reasons,  or my friends or family using me for their own gains. Either thought was heartbreaking.
"This was a deeply stressful time in my life and the fact my insecurities were being publicised obviously made it worse."
She described how friends, particularly model Kate Moss, questioned whether they could trust her.
"Even worse than that, Jude, the father of my children, thought for years that I was selling stories which created an animosity between us that has only really disappeared since the revelations about phone hacking."
Ms Frost said: "I couldn't take my youngest son to the park for two years because he was photographed. He would cry and I would get panic attacks.
"I lost two to three years of my life, they wanted me to fail.
She told the hearing that it felt like she and those closest to her were "being monitored and hunted down by a sort of secret police".
"Every area of my life was affected. There was nowhere I could go that was safe."
"If I went to the doctor or gynaecologist, details would be in the newspaper."
Ms Frost said she was left "incredibly embarrassed and humiliated" when a story emerged about her attending an Alcoholics Anonymous meeting.
She said she had been advised to go a meeting of Alcoholics Anonymous "because it was a safe place".
"Someone quite high-profile took me there and I went there after everyone said it would be safe and anonymous," she told the court.
"I was portrayed as troubled, sad, as a party-girl. That's not why people go to AA, they go there to get help and be in a safe place."
She added: "I was portrayed for so long as a complete mess that I have had to overcome people's perception of me to rebuild my reputation as a successful businesswoman. I can only guess at the position I would be in if none of this had happened."
She said that the apology she had received from Mirror Group Newspapers (MGN) was "rather too little too late".
The hearing at the High Court in London is considering what compensation should be paid by MGN to Ms Frost, alongside BBC creative director Alan Yentob, soap stars Shane Richie, Shobna Gulati and Lucy Taggart, former footballer Paul Gascoigne, TV producer Robert Ashworth and flight attendant Lauren Alcorn.


Barron Trump, US President Donald Trump's 11-year-old son, will attend a school outside Washington when he moves into the White House this summer.

Barron and his mother Melania, Mr Trump's third wife, are expected to leave Trump Tower in New York after the end of the current school year.
He will go to St Andrew's Episcopal School in Maryland, where tuition costs almost $40,000 (Â£31,000) per year.
There had been questions about when the First Family would move to Washington.
Mrs Trump said in a statement that St Andrew's was "known for its diverse community and commitment to academic excellence", adding: "We look forward to the coming school years."
Barron will be the first child of a president to attend the school, which is a 30-minute drive from the White House.
St Andrew's has refused to comment on their newest student, citing reasons of privacy.
Recent First Daughters such as Sasha and Malia Obama have attended Sidwell Friends, a Quaker school with campuses in Washington and Maryland.
The White House announcement comes after St Andrew's sent a letter to parents on Friday, informing them of the First Family's decision.
St Andrew's had intended to wait until the summer to make the announcement in order to stave off possible protests while school was in session, the Washington Post reports.
But after parents began to hear rumours, the school sent out a letter, prompting Monday's statement from the White House.
Melania, Ivanka and Barron Trump - who is the new first family?


Wales might vote to remain in the EU if the referendum was run again, a new opinion poll has suggested.

A ITV Wales/Cardiff University YouGov poll put Remain on 46% and Leave on 41%, while 8% would not vote and and 5% said they did not know.
Wales voted 52.5% to 47.5% to Leave the EU on 23 June.
The poll also suggested support for Labour at both Westminster and the assembly had fallen to its lowest level since the 2010 election.
The poll asked how respondents would vote if another EU referendum was held tomorrow.
"If we take out the un-decideds and those who wouldn't vote, these results equate to 53% to 47% balance in favour of Remain," said Prof Roger Scully of Cardiff University.
"The key words there, though, are 'since the referendum'.
"Unless those supporting continued EU membership can find some way of overturning or rerunning the vote, their views may now count for very little."
For Westminster elections, the parties were ranked at:
For the constituency seats at the assembly:
For regional AMs seats:
Prof Scully said: "In short, this poll confirms what we might have suspected from the recent bad torrent of bad news - that the Labour party is in some difficulty.
"Even in its historic Welsh bastion it is reaching levels of electoral unpopularity not seen since the days of Gordon Brown's leadership and hardly ever experienced by a major party when it is in opposition in London.
"The Conservatives' recent problems have hardly placed them in a good position to take immediate advantage of Labour's struggles.
The 16% score for Plaid Cymru at a Westminster election was the best the party had ever done in a YouGov poll, he added.
Respondents were also asked if they would vote to make Wales an independent country at a referendum - 15% said yes, 65% said no and 20% said they would not vote or did not know.
This rose to 19% yes and 61% no if Scotland voted to become independent at the same time.
If it meant Wales could remain part of the EU while others left, 28% said yes and 53% said no, with 20% saying they would not vote or did not know.
The poll, for ITV-Cymru Wales and Cardiff University's Wales Governance Centre, had a sample of 1,010 Welsh adults and was carried out by YouGov from 30 June - 4 July.


Hooker Sam Parry scored a hat-trick as Ospreys made a winning start in the Pro12 with an eight-try bonus-point win over Italian side Zebre.

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The Welsh region had the game wrapped up at half-time after tries from Parry, Lloyd Ashley and Ashley Beck, with Sam Davies adding the extras.
Tommaso d'Apice struck back before the break, before Parry scored his third rolling maul try following a line-out.
Ben John and Dafydd Howells added further scores for the Pro12 leaders.
Fly-half Davies scored Ospreys' first points of the season with a penalty after Zebre were penalised for not rolling away after just five minutes.
Man-of-the-match Parry bundled over from a rolling maul shortly after following a period of sustained pressure from Steve Tandy's side.
And the scoreline became even rosier for Ospreys when second-row Ashley broke through a gaping hole in the visitors' defence with a charge from the 22-metre line.
Centre Beck was next to touch down when he crashed through two tackles from close range on 25 minutes.
Zebre reduced the deficit when d'Apice rumbled over from a line-out five minutes before half-time, but their good work was soon undone.
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Parry forced his way over for his second try on the stroke of half-time with Zebre again unable to stop Ospreys' rolling maul.
It became a night to remember for the 24-year-old when he scored a near replica of his second try seven minutes into the second half.
Parry was replaced midway through the second period, but the onslaught continued with replacement John running in from a fine inside pass from Davies.
Fellow substitute Howells collected a cross-kick from full-back Dan Evans to score with five minutes remaining, before John scored his second after an off-load from Wales flanker Justin Tipuric.
Lock Bradley Davies made his Ospreys debut off the bench after joining from Wasps, while Tipuric started after recovering from concussion.
Tipuric returned during pre-season having not played since landing heavily at a line-out against Italy in the 2016 Six Nations.
Ospreys: Dan Evans; Jeff Hassler, Ashley Beck, Josh Matavesi; Eli Walker, Sam Davies, Tom Habberfield (capt); Nicky Smith, Sam Parry, Dmitri Arhip, Lloyd Ashley, Rory Thornton, Olly Cracknell, Justin Tipuric, Tyler Ardron.
Replacements: Hugh Gustafson, Paul James, Ma'afu Fia, Bradley Davies, Dan Baker, Rhys Webb, Ben John, Dafydd Howells.
Zebre: Kurt Baker; Lloyd Greeff, Giulio Bisegni, Tommaso Castello, Gabriele Di Giulio; Edoardo Padovani,  Guglielmo Palazzani; Andrea Lovotti, Tommaso D'Apice, Pietro Ceccarelli,  Federico Ruzza, George Biagi (capt), Jacopo Sarto, Maxime Mbanda, Andries Van Schalkwyk.
Replacements: Carlo Festuccia, Andrea De Marchi, Dario Chistolini, Valerio Bernabo, Giovanni Pettinelli,  Fabio Semenzato, Carlo Canna, Tommaso Boni.
Referee: Andrew Brace (IRFU)
Assistant referees: Stuart Gaffikin (IRFU), Gareth Newman (WRU)
Citing commissioner: Aurwel Morgan (WRU)
TMO: Simon McDowell (IRFU)


A scholarship for fresh talent entering the oil and gas industry, as a legacy of the Piper Alpha disaster, has been unveiled.

The 1988 North Sea oil platform tragedy saw 167 men die, the world's worst such incident.
The new programme has been launched by industry skills and safety body Opito.
Survivor Ed Punchard said: "It is important for us to remember the events of that night in a way which is about the future rather than the past."
He explained: "I believe that we need to empower a new generation of young people who will be involved in the oil and gas industry in the future, so that they will be fully aware of the dangers inherent in the industry and the need for safety to be a priority at every level."
David Doig, group chief executive of Aberdeen-based Opito, said: "Piper Alpha was a significant turning point for the oil and gas industry, not just here in the North Sea but far beyond.
"It is vital that the lessons learned are not forgotten but are passed on to the next generation of offshore workers and managers, many of whom weren't even born when the disaster happened."
The first three recipients are Olusola Olusuyi, known as Sola, Pal Bipin, and Ada Bolu.


Two of three pine trees that were deliberately drilled and had poison poured into them have died.

The trunks of two pines on West Cliff Green, Bournemouth, were each drilled up to 15 times last June.
A third pine was damaged the following month and a "crystal-like" substance was discovered on its bark.
Tests revealed the substance was the herbicide glyphosate, the borough council said. Residents have said they are "appalled" by the loss.
Nick Colledge, from Bournemouth Borough Council, said the samples from all three trees "tested positive for very high levels of the herbicide glyphosate".
In a bid to prevent further damage and save the pines, the holes were plugged with wooden dowels to stop any other substances from being poured inside, and CCTV was installed in the area last October.
But two of the trees have now died and the third is in a poor condition, the council said.
Chris Colledge, of West Cliff Green Residents' Association, said: "Residents and a number of hoteliers along West Cliff are absolutely appalled that someone should take the law into their own hands, with a motive of whatever purpose, and target these beautiful trees."
The council now plans to plant six new trees around the existing damaged trees.
Dorset Police is investigating the damage, but no arrests have been made.


Shares in Provident Financial ended the day 17.5% lower on Wednesday, after it warned a shake-up of its doorstep lending division would dent profits much more than previously forecast.

The sub-prime lender is replacing self-employed debt collection agents with ones employed by the company.
However, it has not had enough applications from existing agents and it has about 450 vacancies.
As a result, debt collection has been "weaker" and sales have fallen.
"The business has experienced higher operational disruption than planned due to reduced agent effectiveness through the period of transition," Provident Financial said in a statement.
Recent vacancy levels have been 12%, it added, more than double the rate anticipated.
"We didn't get it right. The incentives we had in place and the other management actions and communications that were there, were not sufficient to retain the number of agents that we anticipated," chief executive Peter Crook told analysts during a  conference call with analysts.
In April, the company said it expected the shortfall in contributions to profits, mainly because of weaker debt collection, to be about £15m in the first six months of the year.
However, recent collections performance has deteriorated, particularly in May, and so the shortfall is now expected to be up to  £40m.
Sales to existing customers and customer retention had also been hit, and so credit issued in the first five months of 2017 was £37m lower than last year.
Provident Financial said debt collections were "stabilising" in June because most of the new doorstep collection jobs had now been filled, and would begin to "normalise" from July onwards.
The disruption to the consumer credit division is likely to see pre-exceptional profits fall to about £60m this year, compared with £115m in 2016, the company predicted.
Mr Crook said he was "disappointed" about the "higher than expected operational disruption".
He added: "Nonetheless, the strategic rationale for the change remains strong and I am confident that it will deliver the substantial benefits previously communicated."
FTSE 100 member Provident Financial also owns Vanquis Bank, and consumer credit brand Satsuma Loans. It also owns Moneybarn, which specialises in sub-prime car loans. They are all trading "in line with internal plans".


An investment fund has accused Nama of "repeatedly mischaracterising" the circumstances in which it withdrew a bid for a £1bn property loan portfolio in Northern Ireland.

The Pimco fund said it walked away from the deal after it found out that a former Nama advisor was due to receive a "fixer fee".
Nama has always said that if Pimco had not withdrawn voluntarily, it would have been forced out.
It reiterated this on Thursday.
The National Assets Management Agency (Nama) is the Republic of Ireland's "bad bank", set up to deal with toxic loans after the 2008 property crash.
The UK's National Crime Agency (NCA) is investigating Nama's Northern Ireland deal after cash was transferred to an Isle of Man bank account.
Parties to the deal deny wrongdoing.
In a letter to the Public Accounts Committee of the Dail (Irish parliament), Pimco said that Nama made efforts to persuade it to stay in the process.
Pimco said it first heard about the possibility of buying the portfolio in April 2013 when it was approached by Tuvi Keinan, a partner from the Brown Rudnick law firm.
Mr Keinan then introduced Pimco to Belfast lawyer Ian Coulter and Nama adviser Frank Cushnahan.
Mr Cushnahan had been appointed to Nama's Northern Ireland advisory committee in 2010 and served until November 2013.
By June 2013, Brown Rudnick was talking to Pimco about a 16m euro (£14m) "success fee" which, on completion of any deal, would be split between the law firm, Mr Coulter and Mr Cushnahan.
Pimco said it did not agree to this and asked whether Nama knew about Mr Cushnahan's involvement.
In February 2014, the fee issue was raised again and Pimco concluded that Nama had still not been told about Mr Cushnahan's role.
It decided to contact Nama directly to "disclose full details of the success fee arrangements which had been proposed by Brown Rudnick".
There was a series of phone calls between Pimco and Nama between 10 and 13 March 2014.
Pimco said that "in no way" did it seek acquiescence to the fee arrangement and told Nama it was "willing to withdraw".
Nama asked Pimco if they had considered "other options" which would allow them to stay in, but they ultimately decided they had "no option but to withdraw".
Pimco said that in some of its public statements Nama may have "conflated what may or may not have been discussed at Nama board level and the reality of the calls that Pimco made to Nama."
A Nama spokesman said: "Nama has made its position clear to the Public Accounts Committee on the withdrawal of Pimco from the process - the Nama board was very clear that, if Pimco did not withdraw, then Nama would exit them.
"Nama rejects any suggestion that it did not set out the circumstances of Pimco's withdrawal accurately."
Mr Cushnahan has consistently denied any wrongdoing in relation to his Nama role.


Swindon Town have suspended three of their players and are investigating reports they inhaled nitrous oxide on a live social media video on Wednesday.

Images appeared to show Drissa Traore, Brandon Ormonde-Ottewill and Jeremy Balmy taking the legal high, commonly known as laughing gas, via balloons.
"The club have already started an internal investigation into the trio's recent conduct," a club statement said.
"They will not be considered for selection during this process."
The Robins, who are 15th in the table, lost 2-0 at Oldham Athletic on Tuesday.
Swindon have not won in six games since head coach Luke Williams signed a five-year deal on 9 March, following a run of six wins from 10 in interim charge.
Between 2006 and 2012, 17 people in the UK died after taking nitrous oxide.
A new law designed to crack down on legal highs was due to come into force but has been delayed.
Then-Liverpool boss Brendan Rodgers said he would speak to England forward Raheem Sterling, now at Manchester City, after he was pictured allegedly taking nitrous oxide in 2015.


Chelsea winger Alex Kiwomya has joined League Two club Crewe Alexandra on loan until 9 January 2017.

The 20-year-old nephew of former Arsenal and Ipswich striker Chris Kiwomya has yet to break into the first-team picture at Stamford Bridge.
His professional debut came in January 2015 while on loan at Barnsley and he had a spell with Fleetwood last season.
Kiwomya is Alex boss Steve Davis's fourth summer signing after Ryan Lowe, Chris Dagnall and Liam Smith.
Davis, who flagged up Kiwomya's arrival two days ago, is hoping his team can mount a promotion challenge after last season's relegation from League One.
And the coffers at Gresty Road may receive a boost with the pending transfer of their former academy defender Grant Hanley from Blackburn to Newcastle because of a sell-on clause when he left the club.
Find all the latest football transfers on our dedicated page.


A major fire has broken out at a plastics recycling centre in Stoke-on-Trent.

The blaze at the site, in Leek New Road, Milton, is believed to have started before 08:00 GMT.
Deputy chief fire officer Rob Barber said the building was "collapsing upon itself", making the blaze difficult to tackle.
Staffordshire Fire Service said it had received 78 calls inside 10 minutes.
It said more than 30 firefighters were tackling the blaze.
The service advised people living nearby to keep their windows and doors shut until it could confirm smoke from the blaze was not harmful.
Mr Barber said: "We are doing our investigations in terms of exactly what's in the building to protect the local communities but also to protect our firefighters who are tackling this fire at the moment."
He said crews would be at the scene all day and possibly throughout the night.
An eyewitness called Allan told BBC Radio Stoke the fire was destroying the building. "The old recycling place is burning down and fire has got of most of the roof," he said.
Police said no-one was believed to be on site when the fire broke out.
A police spokeswoman said a cordon had been put in place for safety reasons and she advised people to avoid Redhills Road and the canal towpath, which were closed.


National League side Eastleigh have signed striker Scott Wilson on a one-year contract.

The 23-year-old, who joins from Weston-Super-Mare, turned down interest from Swedish top-flight side Ostersunds to join the Spitfires.
Eastleigh boss Chris Todd said: "I am excited to have Scott join the squad.
"He is an incredibly hungry individual who is looking to succeed in the game and has a huge desire to progress with Eastleigh."
Find all the latest football transfers on our dedicated page.


Medical records appear to have been wrongly given to the insurance industry by the health service, the NHS admits.

Details on hospital admissions from 1989 to 2010 were handed to the Institute and Faculty of Actuaries.
The information was used to produce a report to help insurance firms price their products.
The Health and Social Care Information Centre, which runs the database of records, said "greater scrutiny" should have been applied.
The information given to the Institute contained details on treatments and diagnoses, age, the area the patient lived in, but not their names.
It was handed over in January 2012 and the Institute paid ??2,220 to cover the Information Centre's costs in compiling the data.
The Institute is the professional body for actuaries, the risk experts who work for insurance and investment companies.
A spokeswoman for the Health and Social Care Information Centre said: "The HSCIC believes greater scrutiny should have been applied by our predecessor body [the centre was known as the NHS Information Centre at the time] prior to an instance where data was shared with an actuarial society.
"We would like to restate that full postcodes and dates of birth were not supplied as part of this data and that it was not used to analyse individual insurance premiums, but to analyse general variances in critical illness."
It said it would publish details of the bodies to whom it supplied such data later this year.
"We are absolutely committed to the public understanding what is being done with their information," the spokeswoman added.
But the centre was unable to explain to the BBC in what way the rules were not followed.
This development comes amid mounting concern about a new data-sharing project, which will be administered by the Information Centre.
Last week, NHS England agreed to delay the roll-out of Care.data by six months until the autumn amid criticism of how it has run the public information campaign about the project.
The central database will involve taking records from GP practices and linking them with hospital files already stored by the Information Centre.
Experts say it will enable them to assess diseases, examine new drugs on the market and identify infection outbreaks, as well as monitor the performance of the NHS.


Crystal Palace have signed Liverpool defender Mamadou Sakho on loan for the rest of the season.

Palace will pay a £2m loan fee plus wages for Sakho, who has played 56 league games since his move from Paris St-Germain in 2013.
The France international, 26, has not played for the Reds since April because of off-field issues.
Palace have signed Serbia midfielder Luka Milivojevic, 25, from Olympiakos on a three-and-a-half-year deal.
Milivojevic started his career in Serbia before moving from Red Star Belgrade to Anderlecht in 2013. After a year in Belgium, he moved to Greece.
Sakho was sent home from Liverpool's pre-season tour of the United States by manager Jurgen Klopp as a disciplinary measure.
He was also handed a 30-day suspension by Uefa in April for testing positive for a prohibited substance following a Europa League tie against Manchester United the previous month.
Uefa failed to impose a further ban after Sakho's defence team questioned whether the substance, understood to be a fat-burner, should have been on its prohibited list.
Liverpool were demanding £20m for Sakho to leave permanently, with Southampton, Swansea, Galatasaray and Sevilla all thought to be interested in the centre-back.
Palace remain in the Premier League's bottom three despite new boss Sam Allardyce winning his first league game since taking charge with a 2-0 success at Bournemouth on Tuesday.
Find all the latest football transfers on our dedicated page or visit our Premier League tracker here.