‘Kings of governmental contracts’ profiteer off service housing built for policemen
It is not a secret that governmental acquisitions are one of the most corrupt spheres in Russia. The CrimeRussia uncovered a smoothly working fraud scheme in the Kursk police – for many years, companies close to the law enforcement structure have been running their criminal businesses.
One of such companies successfully ‘milking' the General Administration for the Kursk Region of the Ministry of Internal Affairs (MIA) of the Russian Federation is Eldecor XXI Plus Limited Liability Company. In 2011 – i.e. during the rule of police general Viktor Bulushev in the region and in the midst of the Nurgaliev's reform – it received a large contract to build service housing for MIA officers. The cost of the contract was over 42 million rubles (some $1.5 million at the exchange rate of that period); Eldecor XXI Plus was supposed to erect a number of apartment buildings for resettlement of policemen and their families. In fact, this project was just the tip of the iceberg because the developer and its main branch, Eldecor XXI, had received other contract from the MIA General Administration for the Kursk Region as well. However, apartments in the buildings erected on the territory of a former streetcar park on Deineki street, Kursk, were mostly sold to persons having nothing to do with officers entitled to housing improvement. Only a smaller portion of the apartments was provided to policemen. The lands for construction were allocated to the builder with severe violations – but somehow, all problems had been settled. Any other legal entity and its management would face serious troubles in such a situation – but not Eldecor XXI Plus.
The CrimeRussia sources explain the business success of the company by the friendship between general Viktor Bulushev and Aleksan Kashtoyan, leader of the local Armenian community and owner of Eldecor XXI Plus.
Viktor Bulushev, ex-Head of the MIA General Administration for the Kursk Region
Kashtoyan was making good money not only on illegal sales of service housing – but also on overpriced construction costs, including charges for expensive windows, flow covering, doors, plaster, electric equipment, etc. In reality, his company had used second-rate construction materials.
Kashtoyan senior died in 2014, and his son Derenik – officially, not involved in the above frauds and as clean as a whistle – took charge of Eldecor XXI Plus.
According to our source in the Federal Security Service (FSB) of the Russian Federation, a number of high-ranked Moscow officers are currently investigating operations of this ‘Armenian–police laundromat’, and a commission of operatives may be dispatched to Kursk any time soon. The criminal scheme had operated for many years: the contract to build the service housing was signed back in 2012, while the last buildings have been commissioned just recently.
Another embezzlement scheme involved Nadezhda Tarubarova, ex-Deputy of the Kursk Municipal Assembly, who was already mentioned in our earlier publications. To refresh background: the fuel business of the Tarubarov family had flourished on governmental orders and acquisitions of budgetary organizations. Their main asset, Ant Oil Fuel Company Limited Liability Company, has shipped gas and lubricants to the MIA General Administration for the Kursk Region for more than 30 million rubles ($471.7 thousand). At some point, Tarubarova failed to present to FSB operatives more than 500 tons of fuel that was supposed to be supplied to the police. A criminal case was instituted against the business lady under part 4 of Article 160 of the Criminal Code of the Russian Federation (misappropriation or embezzlement committed by an organized group or on an especially large scale), and the ex-Deputy was remanded in custody.
The CrimeRussia sources emphasize that the fraud committed by Tarubarova was uncovered by the secret service, which implies that the shady scheme had likely involved high-ranked officials in the MIA General Administration for the Kursk Region. Based on her confessions, many of her accomplices in uniform, including Mogilev and Nestruev, may relocate to the pretrial detention facility as well.
Another ‘supplier of services’ for the Kursk police is clan Iboyan. Some of its members, for instance, Maiya Avtandilovna Iboyan and Tel’man Avtandilovich Iboyan, had participated in the construction of a new facility for the regional children’s hospital. Being creditors of the general contractor – 321 VSU Limited Liability Company close to Governor Vadim Potomsky – they were involved in the procrastination of works and obliteration of traces and avoided criminal prosecution by a miracle. According to our sources in the Orel Municipal Administration, the closeness of clan Iboyan to Vadim Potomsky, ex-Governor of the Orel Region, and high-ranked MIA officials enabled them to get off the hook.
Zori Iboyan has established Shans (Chance) Limited Liability Company in Orel; its subsidiary structure received in Kursk a governmental contract worth over 15 million rubles ($235.8 thousand) to repair vehicles of the MIA General Administration for the Kursk Region.
We have visited Shans Repair Center located on Gremyachenskaya street in Kursk and found a huge backup of police cars there. According to the policemen, the vehicles stay outdoors indefinitely and are repaired three months after the arrival at the best.
Police officers claim that it is useless to protest against the unreasonably lengthy duration of repairs. The customer does not lodge claims against the supplier and continues using its services. The question is: why is it so? Who is ‘patronizing’ Shans by awarding governmental contracts to it and protecting against any troubles?
Vasha Bezopasnost (Your Security) Limited Liability Company supplies electronics and computer equipment, fire-fighting systems, and other appliances to all governmental institutions of the Kursk region – from the MIA General Administration to hospitals. In 2012 alone, Vasha Bezopasnost has supplied computers to the police for the total sum of 32 million rubles (some $1 million at the exchange rate of that period).
Interestingly, Oleg Aleksandrovich Agibalov, owner of Vasha Bezopasnost Limited Liability Company, decided to run for the Kursk Municipal Assembly immediately after the arrest of Nadezhda Tarubarova, the previous ‘queen of governmental orders’. Based on open source data, the years of 2018 and 2019 were not very successful for Agibalov – and the businessman likely wants to become a Deputy to improve the state of his affairs.
The apartment buildings erected by the Kashtoyan family are partially inhabited by people having nothing to do with the police or other law enforcement structures. The illegitimate revenues of the developer – and, accordingly, damages sustained by the budget – amount to billions of rubles.
Tarubarova remains in the pretrial detention facility. Her husband and son are likely going to join her soon. Some of their family enterprises stand idle, while others, for instance, Polimer (Polymer) Limited Liability Company specializing in the recycling of rubber tire cases, cannot start processing the stock material without causing an environmental disaster. The CrimeRussia possesses photos of Polimer Plant whose guarded territory is swamped with used tire cases. In the hope of settling its problems with the law, the company has retained Vitaly Kazakov, ex-Head of the Operations and Search Division of Internal Security of the MIA Administration for the Kursk Region, to its Security Service – but in vain. Furthermore, Kazakov had reportedly helped FSB operatives to uncover shady schemes pulled off by Nadezhda Tarubarova.
Shans Limited Liability Company continues to be an ‘impound lot’ for police cars – it actively ‘spends’ public funds without actually repairing the vehicles.
Vasha Bezopasnost Limited Liability Company has been increasingly frequently involved in suspicious schemes nowadays.
And the icing on the cake: the Kursk police has awarded a governmental contract to a company controlled by Timur Tutov, a representative of the local organized crime.