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Ten Millions Misappropriated During Submarine Repair

Ten Millions Misappropriated During Submarine Repair 19.11.2012
Text: RusNavy.com
Photo: Northern Fleet's Project 877 diesel submarine Kaluga. RusNavy.com
Director of a Murmansk-based commercial organization specialized in ship repairing set up 12 fly-by-night companies to misappropriate RUR 10 mln out of a submarine repair state contract.

Murmansk investigation committee initiated a criminal case based on the fact of authority abuse. Intended overrating of repair works was founded when auditing of the high-cost state contract. Totally, Russian defense ministry channeled RUR 145 mln in 2010 for repair works at Northern Fleet (NF), and RUR 60 mln in 2011.

Those funds were appropriated for repairs and maintaining of two NF warships and 50 auxiliary vessels.

"The audit showed that 30 percent of those works were groundlessly overrated. As a result, monetary assets were funneled via fly-by-night companies and misappropriated by the director of that organization", said Dmitry Gabov, head of an economic security section at Murmansk police department.

Officers of FSB, police, and anti-corruption agency carried out searches in the company's office on Nov 15. As long as the businessman and his employees refused to open the door, officers called in aid to colleagues from EMERCOM. By order of a chief investigator, they cut off the metal entry door.

While the officers tried to enter the office, businessmen were hastily destructing documents related to the fly-by-night firms.

"We have confiscated documents of 12 fly-by-night companies. There were fragments of documents inside the shredding machine", said Sergei Levchenko, representative of Murmansk Investigative Committee.

The office personnel tried to dispose of stamps. Later on, police had to call female colleagues to search of detained women hiding fragments of stamps.

Operational procedure finished at midnight. Apart from documents and stamps, policemen confiscated office appliances. In addition, they took away jewelry to investigate the ways it was bought. Currently, only the businessman is involved in the criminal case. Restraint measure has not been chosen for him yet.

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