Ex-Vice-Governor of Primorye Yezhov charged with negligence for failure of five-star Hyatt hotels' construction

Ex-Vice-Governor of Primorye Yezhov charged with negligence for failure of five-star Hyatt hotels' construction
Oleg Yezhov

In May 2016 Oleg Yezhov was arrested in the framework of another criminal case. Investigators believe that the official's negligence led to a delay in the construction of hotels and an additional expenditure of budgetary funds.

The former Vice-Governor of Primorye, Oleg Yezhov, who is currently under arrest on charges of abuse of authority, became a figurant of another criminal case. This time on the fact of negligence.

As reported by Interfax, the case was initiated after the failure of the construction of five-star Hyatt hotels in Vladivostok.

According to the source of the edition, the investigators came to the conclusion that "the actions of Yezhov led to an unjustified extension of the construction of hotel complexes, as well as an increase in budget spending on their construction."

The construction of the Hyatt Hotels was planned to be completed by the APEC summit in 2012, but it has not been completed so far. The customer was Our house – Primorye JSC, owned by the Primorsky Territory. Annually for the construction of the hotel billions of rubles were allocated from the regional budget. At the moment, one of the hotels, located at Cape Burbiy, is put up for auction in readiness of 80%. The price of the building is about 4.15 billion rubles ($70m). The deadline for the second hotel is set for mid-2018.

At the moment, no comments have been received from the lawyer of the ex-official and representatives of the ICR. The regional Prosecutor's Office confirmed that according to the results of the inspection of the hotels' construction, conducted in late 2016, a criminal case was opened under Art. 293 of the Criminal Code (Negligence).

In November 2016, general director of Our Home - Primorye Sergey Zaporozhets was detained. He was called to be guilty of embezzlement and was sentenced to 2.5 years imprisonment and a fine of 1.8 million rubles. The case was examined in a special order, as Zaporozhets reimbursed the damage.

Oleg Yezhov held various posts in the administration of Primorsky Krai in the period from 2012 to 2016. Working as the Deputy Prime Minister, he oversaw the issues of urban construction supervision and control in the field of shared construction.

The case of the construction of Hyatt is not the only one where Yezhov acts as the accused. In May 2016, he was detained on suspicion of abuse of official powers due to unfulfilled state contract for the construction of a fire station in the Krasnoarmeysky district. According to the investigation, the official, heading in 2013 the department of construction of the region, signed the acceptance certificate and paid the bill, although in fact the work was not performed. Thus, the regional budget was damaged in the amount of 24.6 million rubles ($416.000). The court sought these funds from the contractor company - Primorye Development.

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