Perm region: Public official launders $125.000 on constructing roads
In the Perm region, Kudymkar Administration public official laundered 7 million rubles on constructing roads.
Specialists of the Kudymkar Inter-District Investigation Department of the Office of Investigations of the Investigative Committee of the Russian Federation in the Perm region opened a criminal case against the Head of the Otdel Kapitalnogo Stroitelstva Goroda Kudimkara Construction Company for breaking article 293, part 1 (“Neglect of Duty”) of the Russian Criminal Code.
The Construction Company signed municipal contract for road renovation using gravel and crushed stone with a self-employed person last March, according to investigative agencies.
The contractor performed the renovation but did not meet requirements of terms of reference. The contractor did not follow requirements of the Building Code of the Russian Federation and GOST. Moreover, the contractor overstated how much money was spent when performing under the contract. Still, the customer signed documents stating they are satisfied with the results and paid more than 8.5 million rubles.
Violations and non-compliances were discovered during a prosecutor's investigation. One of the things discovered was that the contractor spent the maximum of 1.5 million rubles ($26,662) when performing under the contract, yet was paid 8.5 million rubles ($151,087). The local budget was seriously damaged due to the fraud.
The Kudymkar Administration is being searched. Police officers are looking for documentation related to performance of the contract and are gathering evidence. The investigation of the criminal case continues.