Financial fraud revealed in Sayda bay project in Murmansk region

Publish date: January 18, 2006

Murmansk region police launched a criminal case against the former director of Murmanskmorstroy company, which participated in the international project on reactor compartments storage facility construction in Sayda bay.

According to the Interfax, it was determined during the investigation that in February-March 2005 the former general director of Murmanskmorstroy Company falsified the contracts and illegally transferred 4m roubles (ca. $141m) to two companies in St Petersburg. The money had been previously received from the foreign donors.

The crime was revealed during the inspection in December 2005 due to the change of the owner. Murmanskmorstroy recently became the structural department of the Murmansk Shipping Company. It was also recovered that the director artificially created the creditor indebtedness for 37.5m roubles ($1.3m) to show the company’s pay inability. The suspect is currently under city arrest and the investigation will reportedly take several months. The police representative promised to compensate the damage to the foreign donors.