City police have raided a fly-by-night firm used to steal more than $18 million in state funds intended to develop the Glonass satellite navigation system.
Police said in a statement on their website that they raided the firm after finding one of its stamps in the office of a director at Russian Space Systems, a public corporation that operates Glonass, sometimes called Russia's answer to the U.S. Global Positioning System, or GPS.
The statement added that the firm was not authorized to conduct business activity, citing economic and financial documents.
The Interior Ministry first suspected Russian Space Systems of inappropriately using budget money in July, when it opened a criminal investigation on embezzlement charges.
According to a ministry spokesman, the investigation revealed that Russian Space Systems transferred payments for ostensibly fulfilled contracts to the bank accounts of two companies controlled by the company, after which the payments were siphoned off via a chain of fly-by-night firms.
Police said in the statement they believe that a total of about 2 million rubles ($64,000) had been stolen from the Glonass project, roughly 600 million rubles of which was stolen via fly-by-night firms.
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
