In Kalmykia, contractors suspected of embezzling 162 million roubles allocated for hospital reconstruction

Contracting organizations suspected of embezzling 162 million roubles of budget funds allocated for reconstruction of the republic's hospital in Kalmykia. This was reported by Konstantin Godneev, Division Head of the Investigatory Department of the Republic's Ministry of Internal Affairs (MIA).

"The results of the judicial construction and technical expertise carried out during investigation revealed overestimation of the value of construction and installation works accepted to payment and carried out by contracting organizations 'Stroispetsservis' and Closed Joint-Stock Company (CJSC) 'Domostroitelny Kombinat', for the amount of 162 million roubles," Konstantin Godneev has explained.

He has also reported that a criminal case was initiated under Article "fraud" of the Criminal Code of the Russian Federation, the "Interfax" reports.

According the Konstantin Godneev's information, the investigation into spending of budget funds allocated for construction and installation works to be carried out starting from September 2008 till December 2009 has revealed the financial relationships between CJSC "Domostroitelny Kombinat" and contracting companies. According to the MIA's information, the preliminary investigation has also revealed that the managing director of the CJSC "Domostroitelny Kombinat" was a relative of the participants and the manager of interdependent companies and carried out illegal financial operations, the GTRK (State TV and Radio Company) "Kalmykia".