Laos presses charges against Australian couple

VIENTIANE, Laos -- Two Australians detained in Laos since December last year on allegations they stole gems from their employer have now been formally charged.

Kerry Danes and his wife Kay Danes have been charged with embezzlement, destruction of evidence and tax evasion in relation to the Gem Mining Lao company where Kerry Danes worked as head of security.

The two have denied the charges which carry a maximum penalty of seven years' imprisonment.

The couple had been held without formal charges in a Vientiane jail since December 23. Under Lao law suspects can be held without charge for up to one year.

"The prosecutors have now formally pressed charges against the couple ... and a court hearing is expected soon," Loatian foreign minister Somsavat Lengsavad told Reuters news service without giving any further details.

The arrrest of the Danes has caused strained relations between Australia and Laos with Australian foreign minister Alexander Downer last month dispatching a senior ambassador to Laos as a special envoy to help resolve the case.

An Australian foreign affairs spokesperson said Wednesday the charges were a procedural step and negotiations to free the couple were "heading in the right direction", but nothing was being taken for granted.

Reuters contributed to this report.