Embezzlement in GLONASS case assessed at $4,25 million

Russia’s Investigative Committee (SK) has completed a criminal investigation of financial machinations during the construction of facilities for the GLONASS navigation system within a federal program in the Moscow region, the Izvestia newspaper writes on Wednesday.

Russia’s Investigative Committee (SK) has completed a criminal investigation of financial machinations during the construction of facilities for the GLONASS navigation system within a federal program in the Moscow region, the Izvestia newspaper writes on Wednesday.

There are five defendants in the case, and the amount of damage has been assessed at $4.25 million. Charges of embezzlement and overstating the work costs have been brought against the suspects. The charged managers were involved in the construction of the GLONASS satellite navigation system control and support center in Korolyov, a town outside Moscow. The construction began in June of 2010 on the site used by TsNIImash. The center was supposed to hold equipment for collecting and processing the data supplied by the GLONASS global network.

The construction funding under the federal program amounted to 1.05 billion roubles ($31.6 million).

The Izvestia daily reported earlier it turned out that by the end of 2010 the estimates of the construction costs had been overstated by more than 40%, and in December 2011 the construction was halted. An expert appraisal also revealed that the contractor had rigged the costs. The government did not allocate any additional funds, and the construction was suspended in December 2011 when the Federal GLONASS Programme for 2002-11 ended. The construction of the building was never completed.

First published by TASS.

All rights reserved by Rossiyskaya Gazeta.

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