Defense Manufacturers Charged of Overpricing

27.01.2012 Federal Service for Defense Order (Rosoboronzakaz) inspected companies responsible for execution of State Defense Order 2011, reports Interfax. In total, 257 inspections were held; as a result, the agency revealed economic violations to the amount of RUR 25 bln while overall financing of defense order was RUR 870 bln.

According to a source in Rosoboronzakaz, companies executing defense order overrated costs and volumes of works performed. Besides, there were cases of payments for unfilled orders and for works not provided by technical specifications. Rosoboronzakaz handed over summary of the inquiries to Military Procuracy and sent over 400 notifications to companies.

Deputy defense minister Alexander Sukhorukov addressed a press conference on Jan 24 and told about implementation of State Defense Order 2011. As for him, Russian military-oriented companies have not executed 84 contracts to overall amount of RUR 42 bln. Recall that volume of defense order was RUR 580 bln in the last year, apart from governmental guarantees for a number of large-scale contracts. According to Sukhorukov, all companies which failed to fulfill contractual commitments will face legal sanctions.