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Probe exposes massive embezzlements in Defense Ministry

September 24, 2013, 16:06 UTC+3
A group of Voentelecom telecommunications holding staff is suspected of embezzling $22 million in Russia's Defense Ministry
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Former Voentelecom CEO Nikolai Tamodin, Photo

Former Voentelecom CEO Nikolai Tamodin, Photo

MOSCOW, September 24 (Itar-Tass) - Russia's Interior Ministry has exposed a group of staff at the Voentelecom telecommunications holding suspected of embezzling 700 million rubles ($22 million) in the Russian Defense Ministry, the interior ministry press centre told Itar-Tass on Tuesday.

Anti-corruption and military counter-intelligence personnel "have exposed massive embezzlements in the Defense Ministry. Former Voentelecom CEO Nikolai Tamodin is suspected of an illegal scheme. Police have detained him,” the ministry said.

“In violation of a state contract, he and representatives of several affiliated profit-making organizations delivered technical equipment, deliberately unsuitable for use and decommissioned from the army, to the Defense Ministry in 2011,” the ministry added.

Spare parts, instruments and accessories of military communication devices were delivered to a Voentelecom subsidiary in the town of Mytishchi, Moscow region, but were sent again to the Defense Ministry on false contracts, the spokesman said, noting that “preliminary reports put damage to the state at more than 700 million rubles.

“A criminal case was opened under Article 159 of the Russian Criminal Code for fraud. Organizations are being searched,” the official added. 

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