In Sakhalin Region, probe launched against mayor of Yuzhno-Kurilsk

The Sakhalin Region Office of the Investigative Committee based on the materials provided by the Sakhalin Region Office of the Federal Security Services has initiated criminal proceedings against mayor of Yuzhno-Kurilsk suspected of a crime under part 2 of Article 286 of the RF Penal Code (committing by the head of local government actions that are clearly out of their power and which entail considerable violation of interests of the society and state protected by the law).

According to investigators, during the implementation of the municipal program “Probision of the population of Yuzhno Kurilsk Urban District with high-quality housing in 2014-2020” the suspect signed a municipal contract with Bigsan, a limited liability company, to buy 104 flats in four 26-flat houses located in the settlement of Yuzhno-Kurilsk on Kunashir island by 31 March 2016. Under the more than 454 million rubles contract the buyer transferred the seller an advanced payment of 30% from the contract price after the first stage of construction was completed. At the same time, the suspect illegally signed an additional agreement with Bigsan which provided for the advanced payment having been transferred even without houses even started to be constructed. Later, more than 136 million rubles from the budget was illegally transferred to the bank account of the firm as the advanced payment which entailed considerable violation of interests of the society and the state protected by the law and caused pecuniary damage to the regional and municipal budgets.

It should be noted, that the firm never started to build those houses.

The suspect has been detained is now expecting a custodial restraint. Investigative operations are underway to find out all the circumstances surrounding the crime.