Two IKEA executives fired for tolerating graft were identified as Per Kaufmann, the firm's general director for Russia and Eastern Europe, and real estate director Stefan Gross, Kommersant reported Monday.
The group said Saturday in a statement that it had dismissed Kaufmann and Gross for tolerating the use of bribes in connecting one of its Mega shopping malls in St. Petersburg to the power grid.
The two managers had "turned a blind eye" to a subcontractor's bribe-giving in order to hasten a power supply issue at the Mega mall in St. Petersburg, IKEA said.
Kaufmann has been responsible for the firm's development in Russia since 2006, while Gross has held his position since last year.
IKEA's Swedish office said it had made the decision to fire the executives on Friday and that this was the first time that it had to make such a decision.
"The measures taken on Friday are unprecedented for the corporation throughout the world, but IKEA is prepared to stick to its touch position on similar issues," the company's press service said, Kommersant reported.
In June, founder Ingvar Kamprad said the home-furnishings retailer had been cheated out of $190 million in gas and electricity bills. He said energy suppliers had failed to live up to their contractual obligations to provide electricity to its stores, forcing the company to buy its own generators.
In July, Kaufmann said IKEA would halt all future investments in Russia after it was not allowed to open a Mega mall in Samara — almost two years after it was finished — because of bureaucratic barriers posed by local officials.
In August, the company said it would end the freeze because local officials were adhering more closely to the law.
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.