May 14, 2024
Last year, 180 criminal cases were opened in Russia for crimes committed in the field of state defense procurement (SDO), which is almost a third (31%) more than in 2022, according to the financial intelligence report of Rosfinmonitoring .
Also in 2023, Rosfinmonitoring sent more than 2 thousand materials to law enforcement and supervisory authorities about possible violations in the field of state defense orders, which is four times higher than the same figure for the previous year. This information became the reason for prosecutors to check the legality of financial transactions totaling more than 60 billion rubles.
Thanks to the department’s materials, the courts arrested various assets worth 8.6 billion rubles, and property and funds worth 34 billion rubles were confiscated. and fines amounting to 1.4 billion rubles were issued.
As a result of investigations launched based on RFA documents, contracts concluded within the framework of state defense orders amounting to 6 billion rubles were terminated, which is more than 6 times the 2022 figure. In addition, Rosfinmonitoring received more than 3.5 thousand reports of corruption in the State Defense Order in relation to about 30 thousand individuals, more than 30% of the reports related to theft from the budget.
At the end of last year, the head of Rosfinmonitoring, Yuri Chikhanchin, at a meeting with President Vladimir Putin, said that budget money, which was pouring into the Russian military-industrial complex in record volumes in order to increase the production of weapons for the war with Ukraine, began to flow into “cash.” According to him, the volume of identified “cash out” transactions in the field of state defense procurement since the beginning of 2023 has reached 6.5 billion rubles.
“We managed to reduce cashing out by 20% with budget funds and the use of shell companies by about 10%,” reported the head of Rosfinmonitoring, noting that work to prevent cashing out is being carried out together with the Bank of Russia and the Federal Tax Service.
In 2023, a record 6.8 trillion rubles were allocated from the federal budget for “national defense,” including state defense orders—44% more than in 2022, and almost twice as much as in pre-war 2021. In the 2024 budget, defense spending increased by another 60% – to 10.8 trillion rubles.
In April, Russian Prosecutor General Igor Krasnov said that prosecutors should have access to information about spending on state defense orders. This, he said, needs to be done “in order to strengthen supervision regarding pricing of products for the defense industry.” “We ask you to support our proposals to provide prosecutors with information about banking transactions with funds allocated for the implementation of state defense orders,” Krasnov said, addressing the Federation Council.
Corruption in mafia land is everywhere. It is deep. It existed for a long time. It will continue existing for a long time. And, it’s a place where you get prosecuted for corruption if the top place for corruption, the kremlin, doesn’t get its cut.
10% is stolen? Reality is worse, 40% is more real………………………. but……………
We know all about numbers and ruskies, don’t we, Veth?