Former officials of the Republic of Dagestan sentenced, found guilty of embezzlement of budgetary funds

The evidence gathered by the Main Directorate on Major Crimes Investigation of the Investigative Committee of Russia was recognized by the court to be sufficient to convict former provisional Chairman of the Dagestan Republican Government Abdusamad Gamidov and his deputy Rayudin Yusufov. Their actions are qualified under Paragraph 4 of Article 160 of the Criminal Code of the Russian Federation (large scale embezzlement committed by an organized group).

The investigation and the court established that, acting as part of an organized group, they had stolen more than 40 million rubles allocated in the republic’s budget for the reconstruction of a building for the temporary detention of foreign citizens and stateless persons in Makhachkala.

Investigators of the Investigative Committee of the Russian Federation presented a set of evidence confirming that the reconstruction of the building was carried out by a group of workers at the request of Shamil Kadiev, the former director of the state enterprise of the Republic of Dagestan “Directorate of the state customer-builder”. The building was built without attracting budget funds of the Republic of Dagestan and without holding an open online auction for the right to conclude a state contract for its construction. The necessary design specifications and estimates were also not available.

Only after the completion of construction works, realizing that the allocation of budget funds is not required, Gamidov and Yusufov signed the documents for the tender and documents for the transfer of funds to their affiliate “Grad-Stroy” entity for the work that this organization has not performed. The stolen money was disposed of at the discretion of the members of the organized group.

Gamidov and Yusufov did not plead guilty to this crime.

At the same time, during the preliminary investigation, a number of forensic examinations were conducted, including phonographic ones, which confirmed the conclusion that the actions of Gamidov and Yusufov were intended to steal budgetary funds.

Investigators of the Investigative Committee of the Russian Federation have taken measures to secure compensation for damage caused. In particular, the defendants’ real estate was arrested, including numerous residential buildings, apartments, land and non-residential premises. The total cadastral value of Gamidov’s arrested property amounted to more than 68 million rubles. A large number of firearms and ammunition were found and confiscated during searches of homes.

It is worth noting that the suburban residence of Gamidov, a large mansion in his ancestral village of Mekegi in the Levashinsky district of the republic, is actually an unauthorized building. There are no title documents for this property, and it is quite possible that utilities, electricity and water supply were simply not paid for. These circumstances will also be verified by the investigation. During a search of the house, two Kalashnikovs were found. It is noteworthy that with all this Gamidov positioned himself as an honest and principled civil servant and defender of the interests of the republic. But the facts speak for themselves.

By a court decision, Gamidov was sentenced to 6.5 years of imprisonment, and Yusufov to 5.5 years of imprisonment, both serving their sentences in a general regime penal colony.

This is only one episode of the crimes attributed to Gamidov and Yusufov. The Investigative Committee also continues to investigate other episodes of criminal activity by Gamidov and his accomplices as part of the general criminal case.

In the course of this investigation, it was determined that in 2013 Gamidov issued resolutions of the Government of the Republic of Dagestan on granting state guarantees to Dagagrokomplex LLC for the total amount of 1.3 billion rubles without mandatory examination of the economic efficiency of the project in a contrary to current legislation. After the guarantees were granted, the designated organization failed to fulfill its obligations to the credit organizations. Subsequently, the Moscow Arbitration Court ruled to recover the indicated sum of money from the Republic of Dagestan in favor of credit organizations. The actions committed by Gamidov entailed grave consequences including an increase in state debt of the Republic of Dagestan.

Joint activities of the Investigative Committee of Russia, Russian Federal Security Service, the acting government of the Republic of Dagestan and the Head of the Republic Vladimir Vasiliev in person made it possible to annul the court decision and save 1.3 billion rubles for the Republic of Dagestan.

Five higher Republican officials have been brought to justice from the moment of referring the probe to the Central Office of the Investigative Committee of Russia. Apart from Gamidov and Yusufov, this includes Head of Federal Antimonopoly Service Directorate Kubasay Kubasaev sentenced to imprisonment for bribe-taking. A probe into Deputy Chairman of Government of the Republic of Dagestan Shamil Isaev accused of embezzlement is being heard in court. Also, the court is reviewing a probe into former Minister of Education of the Republican Government Shahabas Shahov accuser of bribe-taking and large-scale embezzlement committed by an organized group.

The investigation into other episodes of illegal activities of authorities of the Republic of Dagestan is ongoing. At present, investigators have established 8 episodes of embezzlement of budgetary funds, bribe-taking, exceeding official powers, illegal storage of firearms and other offenses. Criminal proceedings have been instituted against 9 persons; the investigation is collecting evidence on them. Shamil Kadiev, one of the organizers of the crimes, has been put on the international wanted list and the court ruled to place him in custody in absentia as a preventive measure.

Work focused on decriminalization of the Republic of Dagestan continues.