Three company managers charged in GLONASS fraud case

Three state company managers stand accused of misappropriating about 150 million rubles ($4,5 million) while implementing the GLONASS program, Investigative Committee spokesman Vladimir Markin said.

Three state company managers stand accused of misappropriating about 150 million rubles ($4,5 million) while implementing the GLONASS program, Investigative Committee spokesman Vladimir Markin said.

"Charges of large-scale fraud have been brought against the Central Machine-Building Research Institute's First Deputy General Director Dzhorzh Kovkov, head of the Institute's Capital Construction Department Alexander Chorny, and General Director of Spetsstroy's Special Construction Department No.5 Alexander Belov," Markin told Interfax on Tuesday.

These managers' transactions caused the Federal Space Agency to lose over 107 million rubles ($3,02 million), according to investigators.

"The Federal Space Agency Roscosmos approved a budget for the national GLONASS program in 2010, including for the reconstruction of the research institute's Building 100-1 in the town of Korolyov near Moscow, and it has secured permission to start reconstruction, receiving 1.05 billion rubles ($31,6 million) in state funding," Markin said.

He also said that the research institute concluded a contract with Special Construction Department No.5 which, according to a final report, allegedly did the construction work worth 39.4 million rubles ($1,185 million).

Belov confirmed the report on the work allegedly done, stating that the sliding molding operations done was worth 147,238,332 rubles ($4,4 million), knowing that in fact this work had not been done," Markin said.

He then referred the report to Chernov, who signed it, while Kovkov, "using his authority and acting on behalf of the customer" confirmed them.

"These fake documents were used to transfer the money from the research institute's accounts to the bank accounts of Special Construction Department No.5. The aforementioned suspects and other unidentified persons used this money of their own accord," Markin said.

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