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RusHydro officially reports Zagorsk power plant project thefts - police

February 20, 2013, 17:15 UTC+3

Earlier, the Interior Ministry exposed a billion-rouble theft during a check into the use of RusHydro funds

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MOSCOW, February 20 (Itar-Tass) - The Interior Ministry has received a statement from the RusHydro company reporting thefts during the construction of the Zagorsk hydroelectric pumped storage power plant, an Interior Ministry representative said on Wednesday.

"After numerous requests to RusHydro, the main department for economic security and combating corruption of the Interior Ministry received a statement from the company according to which the state-owned company can be regarded as an injured party. This gives the police the reason to open a criminal case over thefts, after reviewing the statement in accordance with the established procedure," the representative of the Interior Ministry's press service said.

Earlier, the Interior Ministry exposed a billion-rouble theft during a check into the use of RusHydro funds. Preliminary damage is estimated at one billion roubles.

The check was launched in 2009. Inspectors exposed fictitious contracts with outsourcers, supposedly used in the schemes to embezzle company funds.

Also, police exposed an embezzlement of the funds allocated for the construction of the Zagorskaya GAES-2 hydroelectric pumped storage power plant through fly-by-night firms.

The Interior Ministry repeatedly asked RusHydro to provide the necessary financial and economic documents. "The company administration was offered to act as an injured party. But no response came, and the required documents were not provided," the Interior Ministry official said.

Earlier, Russian President Vladimir Putin criticized the RusHydro Company and expressed discontent and bewilderment over its inaction after the embezzlement of company funds.

At a meeting of the commission over the development of the fuel and energy sector last week, the head of state asked several times why no damages actions had been filed. "Where are reports /to the Interior Ministry/? Putin asked, citing the GS-2 company as an example. "Twelve billion roubles were allocated for the project; of this sum, six billion roubles were transferred to the general contractor Gidrostroy. It signed contracts with outsourcing companies which had two persons on staff, lacking workforce, transport or equipment."

"The Interior Ministry has repeatedly suggested RusHydro act in the capacity of injured party, but there has been no response up to date," the president went on to say, adding that the company should make its best efforts to recover the money.

Dod assured that RusHydro would immediately submit a damages statement.

The RusHydro chief visited the Interior Ministry on Tuesday, but he did not report the damage caused to his company. "Instead, he wrote a statement on the Gidrostroy company's failing to pay taxes," a police official told Itar-Tass.

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