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Petersburg official detained within city budget funds theft case

Among the suspects are city government officials and executives of the company for construction and repairs of facilities of the engineering and energy complex

Photo ITAR-TASS

Photo ITAR-TASS

MOSCOW, January 16 (Itar-Tass) — Economic crime police detained a Petersburg official suspected of stealing budget money within the so-called "pipe" case, opened over embezzlement of funds allocated for replacing utilities' service lines in the city, the press service of the Interior Ministry's main department for economic security and combating corruption /GUEBiPK/ told Itar-Tass on Wednesday.

"The investigation is being carried out into the criminal case over the theft, by participants in an organized group, of the budget money allocated for a goal-oriented investment program in the public and utilities sector," the press service said.

The suspect, who is head of the department for procurements under the state-owned company for construction and repairs of facilities of the engineering and energy complex, secured the victory at tenders for commercial companies involved in the corruption scheme, to enable them to win state contracts. Police searched his office and apartment, seizing notes, data media, and other objects and documents proving his illegal activity. A court is mulling custody as a measure of restraint for the detainee who will be convoyed to Moscow, police said.

Among the suspects involved in the corruption scheme are city government officials, executives of the company for construction and repairs of facilities of the engineering and energy complex and heads and founders of a number of commercial organizations.

The Petersburg administration is providing comprehensive assistance in the probe into the theft of the city's funds. The actions towards establishing the identities of other persons complicit in the scheme and documenting additional episodes of their illegal actives is continuing, the GUEBiPK press service said.

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