By IANS/RIA Novosti,
Moscow: The Russian Investigative Committee has opened several criminal cases against a group of people suspected of misappropriating half a billion rubles (around $16 million) of budget funds allocated for road maintenance.
The criminal group in central Veliky Novgorod region, which acted between 2011 and 2012, was led by the “first deputy head of the Novgorod administration and a big-shot businessman”, the Interior Ministry said.
Investigators opened a criminal case against Arnold Shalmuyev, first deputy governor of Veliky Novgorod, accusing him of abuse of office and coercion.
Another criminal case was filed over a 35-million-ruble fraud of funds for road maintenance in the region, which involves two local lawmakers, Anatoly Petrov and Nikolai Zakaldayev among other suspects.
Regional prosecutor Andrei Kikot said nine people are currently suspects in the 500-million-ruble fraud case.
According to investigators, budget funds allocated for road maintenance in 2011 were transferred to companies through the Magistral company, which was controlled by the criminal group.
The money was later cashed and shared between group members. Consequently, some 150 million rubles ($4.8 million) were stolen that year.
The criminal group changed the scheme in 2012, the interior ministry said. That year, an independent entrepreneur won the tender for road maintenance and signed a 355-million-ruble ($11.4 million) contract. However, Shalmuyev coerced him into foregoing the contract in favour of the Veche company.
The Veche company later concluded road maintenance deals with a dozen contractors, whose executives were forced to pay 10 percent of the contract sums in “kickbacks” to members of the criminal group.
Police have conducted over 40 searches in the Veliky Novgorod administration, as well as in the suspects’ homes, as part of the investigation.
Russia’s Channel One said Shalmuyev was taken to a hospital, allegedly with a heart attack, after law enforcers searched his house.