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Audit Finds $2.2Bln Overspend on Military Housing

The total value of contracts for building or purchasing housing for members of the armed forces has exceeded the budget limit by 70.3 billion rubles ($2.2 billion), Izvestia reported Wednesday, referring to a review conducted by the Audit Chamber.

The Defense Ministry planned to spend 80 billion rubles on military housing in 2012-2014.

A Defense Ministry official responsible for housing procurement called these findings "an error," and said that all housing contracts were made in compliance with state defense orders.

The Defense Ministry has not commented on the story, Izvestia said.

Despite the supposed excess spending, about 80,000 military personnel are still waiting for a place they can call home. At the same time, 59,600 flats purchased by the Defense Ministry are still empty, because they are built in "areas unsuitable for habitation," the newspaper said.

(MT)

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