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Researchers Swindle Defense Ministry
The Russian Interior Ministry department of economic security has uncovered the embezzlement of 9 million rubles from the Defense Ministry through the use of falsified contracts. A criminal case has been initiated for the violation of article 159, part 4, of the Criminal Code (“Fraud”), the department’s press service reports. The contracts were made between the federal state unitary enterprise 26th Central Scientific Research Institute of the Ministry of Defense of the Russian Federation and the Association for the Business Cooperative of Specialists of the same institute. The director of the association has been arrested.
The investigation has determined that 9 million rubles was allocated to the research institute in 2006 to develop the Security 2006 special-purpose information system under state contract. A competition was held by the institute to find an executor of the contract and the Association for the Business Cooperative of Specialists won it. It was later revealed that the members of the competition commission were all members of the winning organization.
It was also revealed that the contract was fictive and that all the work on the information system was done by members of a working group set up by a ministry official. The association transferred the money it received to front companies. An additional 12 fictive contracts worth 11 million rubles were made with subcontractors. The investigation is continuing with an audit of the research institute.
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