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• W2270279197 abstract "RUSSIA'S EMBEZZLEMENT PROBLEM IS OUT OF CONTROL. (By Aleksandr Golts, deputy editor of online newspaper Yezhednevny zhurnal [Daily Journal]. The Moscow Times, April 14, 2015, p. 8. Complete text:) Any Russian who regularly watches television knows full well that this country is surrounded by enemies. That gives special relevance to former Soviet leader Joseph Stalin's bygone call to industrialize and step up military production, and his argument Either we do this, or they will crush us. ... Heeding this sage utterance, Kremlin decided in 2010 to spend more than 20 trillion rubles (then $650 billion) rearming Russia's military. And now, [Russian] President Vladimir Putin announced this week that the pace of implementing state defense orders as of end of 2014 has exceeded planned targets. ... The progress is apparently so great that, for some reason, Putin finds it necessary, every six months, to meet personally for several days at a time with defense industry chiefs responsible for fulfilling state contracts. Putin has also approved creation of an interagency system for overseeing use of state funds during allocation and implementation of state defense orders. ... The authorities plan to create an extremely complex system coordinating the databases of Russian Defense Ministry, Federal Antimonopoly Service, Federal Financial Monitoring Service and Bank of Russia. That supervisory Medusa will stand poised to strike moment any ultrapatriotic defense industry manager transfers state funds allocated for weapons production into an unauthorized bank account. ... For some mysterious reason, some of top managers responsible for implementing defense orders seem to be agents of US State Department and Britain's MI6. How else to explain why workers at construction site of Russia's future Vostochny cosmodrome did not receive their salaries for several months running? Those workers first went on strike, and then declared a hunger strike in order to receive their back pay. ... Of course, that news did nothing to strengthen authority of Deputy Prime Minister Dmitry Rogozin, whom Putin had made responsible for that project and for overseeing defense contracts in general. Rogozin hastily traveled to Far East and ensured proper payment of wages, dismissed some officials and arrested others, and, of course, put construction process back on track. ... And as to reason for widespread theft and corruption - with one manager issuing a monthly salary to his wife of 800,000 rubles ($15,000) - Rogozin said problem stemmed from the managers whom former defense minister appointed, and who, instead of carrying out very important strategic orders from president and government, often engaged in embezzlement. ... Perhaps former defense minister Anatoly Serdyukov, who was dismissed from his post long ago [see Current Digest, Vol. 64, No. 44-45, pp. 3-6], was also to blame for fact that even after Rogozin had restored justice at Vostochny, men who had organized strike and hunger strike were fired from their jobs. ... In fact, story of Vostochny cosmodrome is just one of many examples of how budgetary funds get plundered under cover of defense contracts. The new cosmodrome - on which work began in 2011 - is intended to replace Russia's reliance on Baikonur cosmodrome in Kazakhstan that Moscow pays $110 million annually to use. ... The authorities set a firm deadline: The new cosmodrome must execute its first launch by end of this year. As usual, though, construction on numerous facilities in new complex is lagging far behind schedule. ... But authorities have known that for some time already. Reports of blatant theft had plagued construction process from very beginning. The Accounting Office calculated that project officials had stolen approximately 16 billion rubles ($300 million) of 400 billion rubles ($7.5 billion) budgeted for construction. ... Several months ago, authorities arrested chief of construction at Vostochny after he had successfully transferred approximately 500 million rubles ($9.4 million) into a third-party account. ... Back in September 2014, Putin expressed surprise that construction chiefs continued to brazenly steal despite knowing that Kremlin was paying particular attention to cosmodrome project. It was then that he sent Rogozin to Vostochny with strict instructions to restore order. ... The Kremlin also announced that National State Defense Command Center in Moscow would monitor work on Vostochny cosmodrome in real time. ... Interestingly, Rogozin was unable to stop runaway levels of audacious theft. Video surveillance of construction site did nothing to reveal source of violations, and even clear and present threat of punishment did not stop misappropriation of budgetary funds." @default.
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• W2270279197 title "RUSSIA'S EMBEZZLEMENT PROBLEM IS OUT OF CONTROL" @default.
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