Global Positioning News

Tag: embezzlement

  • Five Charged in GLONASS Embezzlement

    Five people stand accused of embezzling 250 million rubles (more than $4 million) in federal funds earmarked for Russia’s GLONASS program, according to information shared by the Russian Legal Information Agency and reported in the Izvestia newspaper. The investigation began in 2013.

    Charges have been brought against George Kovkov, deputy general director of the Central Research Institute of Machine Building, or TsNIImash; Alexander Chernov, chief of the company’s Capital Projects Department; Alexander Belov, general director of one of the Federal Special Construction Agency’s departments; Dmitry Belitsky, owner of the company Verny Consulting; and Roman Martynenko, general director of SpetsMonolit OOO.

    Martynenko and Belitsky have also been charged with money laundering. None of the men pleaded guilty.

    The GLONASS program has cost 140 billion rubles ($2.4 billion) to date, and its budget for 2012-2020 stands at a further 326 billion rubles ($5.5 billion). Construction of a GLONASS control center began in June 2010 on the site used by TsNIImash in Korolyov, a town outside Moscow. The construction was financed by a federal program, with 1.05 billion rubles (over $18 billion) allocated for the project.

    By the end of 2010, it became clear by the end of 2010 that the construction cost estimates had been overstated, according to Izvestia. An expert appraisal also revealed that the contractor had rigged the costs. Construction was suspended in December 2011 when the Federal GLONASS Program for 2002-2011 ended. The construction of the building has not been completed.

    The Federal Security Service (FSB) started looking into the unfinished building in 2013. In January, the FSB asked TsNIImash to provide the construction documents for an inspection, which ended in April. The results were then forwarded to the Investigative Committee and a criminal case opened.

    In November 2012, the general designer of GLONASS, Yuri Urlichich, was dismissed from his post as a result of the scandal.

  • Embezzlement of GLONASS Funds Investigated

    The Russian Federal Security Service is investigating the embezzlement of billions of rubles from the construction of the GLONASS center in Korolyov, a town outside Moscow, the Izvestia newspaper reports.

    According to information shared by the Russian Legal Information Agency, the Investigative Committee’s department for the Moscow Region has launched a preliminary probe into the case.

    Construction of the GLONASS satellite navigation system control and support center began in June 2010 on the site used by TsNIImash, the head research company of Russia’s federal space agency. The center was supposed to hold equipment for collecting and processing the data supplied by the GLONASS global network.

    The construction was financed by a federal program, with 1.050 billion ($33.22 million) allocated for the project. By the end of 2010, it came to light that construction costs had been overstated, Izvestia reports. An expert appraisal revealed that the contractor had rigged the costs. The government did not allocate additional funds, so construction was suspended in December 2011 when the Federal GLONASS Program for 2002-2011 ended. The construction of the building has never been completed.

    In November 2012, the general designer of GLONASS, Yuri Urlichich, was dismissed from his post as a result of the scandal.

  • Designer of GLONASS Dismissed in Embezzlement Scandal

    General Designer of Russia’s GLONASS satellite navigation system Yuri Urlichich has been dismissed from his post in the wake of an embezzlement scandal, a spokesperson for RF Deputy Prime Minister Dmitry Rogozin, who is in charge of the military-industrial complex, told Itar-Tass.

    Urlichich still holds the position of Director General of Russian Space Systems (RSS), but is no longer the chief designer of Russia’s GLONASS system.

    The personnel decision is apparently related to a scandal involving embezzlement of 6.5 billion rubles ($200 million) of the GLONASS programs funds at RSS, Deputy Prime Minister Dmitry Rogozin told the RIA Novosti news service on Sunday. Rogozin heads the government’s military-industrial commission.

    According to Igor Bozhkov, head of the Moscow Metro Internal Affairs Department, RSS’ initial contract with Russian space agency Roscosmos allowed the company several avenues for embezzlement.

    This is just one of a series of corruption scandals coming to light this past week, Ria Novosti reports. Hundreds of millions of dollars disappeared during the GLONASS project as well as Asia-Pacific Economic Cooperation (APEC) construction projects. Another real estate scandal resulted in the firing of the defense minister.

    No charges were reported against Urlichich or other GLONASS makers as of late Sunday.

    The Washington Post is reporting that President Vladimir Putin’s chief of staff was aware of alleged embezzlement of state funds earmarked for GLONASS. Sergei Ivanov said he discussed the probe with police officials but didn’t speak publicly about it for several years, to prevent the culprits from covering up their deeds. Ivanov, a KGB veteran like Putin, said years in the spy service taught him to be sly with the enemy. As a former cabinet member, Ivanov previously oversaw the development of the GLONASS system.