Samaratransstroy CEO faces trial for $50-thousand embezzlement in subway construction
A trial against the Samaratransstroy CEO begins in Samara. The entrepreneur is accused of swindling on a large scale during subways construction.
The Samaratransstroy CEO signed a public contract with the Samara Region Ministry of Transport and Motorways in 2015, according to local prosecutors. He made a commitment to build subways across the Moskovskoe Highway between Michurin Street and Rosneft gas-station No. 15.
According to the contract, the contractor was to use the DEFROST PIPI 20Вt/m NEXANS 10174810 heating cable (435.3 rubles per meter, VAT included) during construction.
The Ministry sent the contractor a 43,053,725.6-ruble ($729 thousand) advance payment for the subways construction on April 6, 2015.
Meanwhile, the Samaratransstroy CEO decided to save money and bought a cheaper cable (DTIP-18 2535/2755 Вт 155м-DEV89833794, 145.68 rubles per meter, VAT included). The cable was used during the construction.
It is worth mentioning that the entrepreneur submitted forged documents to local authorities. The documents stated the more expensive cable was used. That is how the entrepreneur proved the money was spent appropriately. In reality, he embezzled the money he had saved when buying the cheaper cable. The Ministry suffered more than 3 million rubles in damages, according to police estimates.A criminal case against the entrepreneur was opened and later referred to the Oktyabrsky District Court (Samara) for further proceedings.