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Regular violations revealed as audit probes Russian military manufacturing

January 29, 2014, 14:28 UTC+3 MOSCOW
Audits of aircraft and ship building corporations last year had led to 48 criminal cases opened into charges of embezzlement and intentional bankruptcy of industrial companies
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MOSCOW, January 29. /ITAR-TASS/. First audits of military manufacturing companies had detected significant law violations, Russian Prosecutor General Yuri Chaika told the first joint meeting of the Prosecutor General's Office, the Defense Ministry and the Ministry of Industry and Trade, discussing law observance in this sector.

Infringements centered on state orders, the prosecutor said. Terms were regularly violated. Associated contractors included enterprises unable independently to fulfill contract obligations and without appropriate licenses.

Numerous facts of overstated contract costs and embezzlement of budget funds had been discovered, he added. Audits of aircraft and ship building corporations last year had led to 48 criminal cases opened into charges of embezzlement and intentional bankruptcy of industrial companies. Another 43 cases were under investigation.

Diversion and misuse of funds had to be prevented, damage compensation enforced and the guilty brought to justice, Chaika said, noting first control actions taken under Russian presidential order.

A new monitoring force had been established within Chaika's service, he announced. This had developed an action plan alongside the defense and interior ministries, the Federal Security Service, Federal Tax Service and Federal Financial Monitoring Agency

More than 20 trillion rubles would be allocated for the 2011-2020 state armaments program under head-of-state and government priorities focused on developing the defense manufacturing industry, Chaika said.

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