Tatfondbank officially collapses
The bank is not in able to pay a debt worth 190 billion rubles ($3.3b).
The Arbitrazh court of Tatarstan declared Tatfondbank bankrupt, thus having satisfied the demands of the Central Bank. Earlier the regulator has stripped the bank of the license due to poor quality of assets and inadequate risks. The interim administration revealed the bank's liabilities in the amount of 189.7 billion rubles ($3.3b), while the real value of the bank's assets does not exceed 28 billion rubles ($492m). Now the Deposit Insurance Agency (DIA), which was appointed by the bankruptcy administration, will have to solve problems with the depositors. At the same time, creditors who have not been insured by the DIA will be able to receive monetary compensation according to the order prescribed by law.
The problems of PAO Tatfondbank began at the end of last year. Then the bank stopped giving cash to customers. As a result of the Central Bank’s operative actions payments to Tatfondbank depositors were resumed through other credit organizations.
On March 3, 2017 Head of the board of Tatfondbank Robert Musin was detained on the charge of major swindling. According to the investigation, he is involved in the theft of 3 billion rubles ($52.7m). In August 2016, Tatfondbank applied to the Central Bank for obtaining a loan, having provided fictitious information about highly liquid asset secured by its creditor – PAO Nizhnekamskneftekhim. According to the investigation, the latter, in its turn, transferred obligations under the loan to Novaya Neftekhimiya LLC (1.8 billion rubles ~ $31.6m) and Suvar Development LLC (2.2 billion rubles ~ $38.6m). 3 billion rubles ($52.7m) received by Tatfondbank were withdrawn from the bank through affiliated organizations.
The deputy governors of the bank's board were also arrested in the framework of the investigation of this case: Vadim Merzlyakov, Ramil Nasyrov and ex-deputy Sergey Meshchanov. The defendants of the case also became Head of TFB Finance Timur Valshin, CEO of Novaya Neftekhimiya LLC Ramil Safin, Head of Royal Time Group Elena Leushina and a number of employees of Tatfondbank. General Director of Suvar Development LLC Andrey Mochalov and the company's CFO Denis Semenov were also put under house arrest. Later both were released.
At the beginning of April 2017 another criminal case was opened against Musin regarding the withdrawal of the collateral property of company Urman under four loan agreements with the bank for more than 847 million rubles ($14.8m).
The Government of Tatarstan controlled Tatfondbank, which was among the top 50 largest institutions in Russia in terms of volume of assets. Prime minister of the republic Ildar Khalikov headed its board of directors. Against the background of the scandal he was forced to resign from his post as head of the Government.
Several new criminal cases against corrupt officials have been instituted in Dagestan. The high-ranked suspects include Abdulmedzhid Suleimanov, ex-Mayor of Izberbash; Amir Magomedov, ex-Head of the Izberbash Administration; Magomed Dzhelilov, Head of the Derbent District; and El’dar Karagishiev, Head of the Babayurt District. In the past, all of them were suspected of similar crimes – but somehow managed to get off the hook. The new arrests occur amid the anti-corruption campaign in the republican law enforcement structures. What are the true reasons behind the new wave of the personnel purge? Can the anti-corruption slogans conceal a fierce battle waged by local clans for redistribution of assets with the purpose to create a new ‘untouchable’ elite in Dagestan?