News

The Kabardino-Balkaria Office of the Investigative Committee has initiated criminal proceedings against first deputy director and chief engineer of the Kabardino-Balkaria Branch of Rusgidro, a public corporation, suspected of exceeding authority under part 1 of Article 286 of the RF Penal Code.

According to investigators, on 13 May 2015, OAO Federal Hydroelectric Company Rusgidro and OOO RIZ Company, a limited liability company, concluded a contractor’s agreement on replacing a power transformer located in the settlement of Psykhurei, Baksan District worth more than 5 million rubles. On 30 March 2016, the parties signed an additional agreement to reduce the cost of work to 4.7 million rubles and to change the terms. According to the contract, RIZ Company received an advance of 10% of the stage’s cost within 30 days since the date the agreement entered its force. All next payments of 90% of the cost of each stage of the work were to be affected within 10 days since the date the parties signed the acceptance certificate, examination certificate and the certificate of practical completion with attached acceptance records and as-built documents.

Aware that no acceptance tests of the power transformer had been run, the suspect unreasonably signed acceptance documents submitted by the CEO of RIZ Company on 31 March 2016. Based on the signed documents, the contract received 3 million 748 thousand rubles. Later, members of the working commission composed of employees of the branch of RIZ Company ran trial starts of the power transformer, however it failed individual load tests and was dismantled to be replaced due to a manufacturing flaw. The power transformer was not commissioned and has not been generating power till present day.

As a result of the suspect’s actions which were clearly beyond his authority, RIZ Company illegally got revenue for not executed work, the aims and tasks of using funds allocated by RusGidro were not achieved while the public corporation suffered considerable pecuniary damage.  

Following a request of investigators, a court has dismissed the suspect from office as remaining in the office he could have tried to hide or destroy documents related to the investigation and he made efforts to influence witnesses who were his subordinates.

The investigation was opened based on the records provided by the Kabardino-Balkaria Office of the Federal Security Service. The investigation is ongoing.