Law enforcers detain main contractor in President Administration reconstruction

Law enforcers detain main contractor in President Administration reconstruction
Rehabilitation Center of Presidential Affairs Office (Herzen Health Resort)

Searches were carried out in the framework of the investigation, including at Director of the FSBI DSR Vladimir Pavlyuchenkov.⁠

The siloviki detained the Head of the largest contract company of the Presidential Affairs Office (UDP). Vasily Smirnov is the owner of PPF Master LLC, regularly performing work ordered by the office manager. Presnensky Court of Moscow elected a preventive measure for him in the form of detention for a period of 2 months. As Rosbalt reports referring to a source, in February 2017 the Investigative Committee of Moscow filed a case upon Swindling of funds (part 4 of Art. 159 of the Criminal Code) allocated for the reconstruction of the Rehabilitation Center of the UDP.

The program for the reconstruction of the Rehabilitation Center has been in operation since 2013. It provides for the reconstruction of existing buildings, the construction of boiler houses with laying of pipelines, as well as the purchase and installation of new medical equipment.

However, the management of the Rehabilitation Center regularly complained about the results of Master’s work in the presidential administration. For example, the contractor purchased furniture to equip one of the buildings for 41.4 million rubles ($733 thousand). While the price-list of the furniture supplier indicates the amount of only 20.6 million rubles ($365 thousand). Medical equipment was purchased through intermediary companies Farmster and TehnoExpert, after which the cost increased dramatically. The Center calls the equipment very outdated.

At the same time the investigators had questions to the management of the Directorate for the Construction and Reconstruction of Federal State Facilities" (DSR), which acted as the customer of the works. The institution did not make any claims to the contractor and tried to resolve the issue with the acceptance of works. The Rehabilitation Center achieved verification of the fulfillment of the contract by the Control Department of the President's Administration, which found all claims to be justified.

According to the investigation, swindling worth more than 71 million rubles ($1.2m) was committed by the leaders of the DSR and PPF Master LLC. But this amount can still increase in the course of the investigation of the case.

As the source of Rosbalt reported, during searches in Smirnov's house in Rublyovka operatives were surprised at the luxurious life the head of Master leads. There was a whole fleet of elite foreign cars with an expensive Aston Martin in the garage. Documents on foreign real estate were also found at Smirnov. The search was also conducted at Head of the DSR Vladimir Pavlyuchenkov. However there is no information about his detention yet. What operatives found in the official's house is not reported as well.

PPF Master, as reported on the company's website, has been working in the construction services market since November 1990. Over the years they received orders for the reconstruction of the building and engineering systems of the Constitutional Court, the State Duma, the left wing of the Foreign Affairs Ministry, a joint hospital with the clinic of the UDP, the Rehabilitation Center of the UDP (Herzen Health Resort), the Federal Antimonopoly Service etc.

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