CHECHNYA LINKS LIBRARY

Illegal expenditure of government money revealed in Chechnya

By Timur Aliyev

CHECHNYA – Several cases of illegal spending of government resources were uncovered in Chechnya in 2004, announced Khizir Dzukhirayev, a member of the Chechen Government Committee for the Control of State Expenditures.

Last year the Committee audited 89 government organizations, including major ones such as Chechengazprom or the Chechen Medical Insurance Fund, and the audit revealed that these enterprises not only spent unusually large amounts of government money, but serious violations of rulings were also noted, Dzukhirayev said.

In particular, it was ascertained that Chechengazprom’s top managers transferred out huge amounts of money after signing agreements with unauthorised commercial firms and private individuals.

For example, pipes illegally dismantled from the Chechen oil pipeline were bought for 45 million roubles. “Figures were altered to show used pipes as being brand new, with money, new equipment and technical resources changing hands,” said Dzukhirayev.

“Similarly, the 7.2 million roubles spent on equipment for the gas industry bought nothing more than scrap metal that had been lying around Chechengazprom’s property for more than ten years. And contract work for the construction of the Stavropol-Grozny gas pipeline was overpriced by 49 million roubles.”

“Used foreign cars were purchased at inflated prices without being appraised and without taking into account government requirements; and such examples are only part of Chechengazprom’s abuses revealed during the inspection,” he added.

All the audit materials were turned over to the Chechen Prosecutor's Office, and the Chechengazprom top managers have been relieved of their duties.

Regarding the Chechen Restoration Board (Direktsija po vosstanovleniju Chechni), Dzukhirayev reported that during the 2002 spring flood settlements, 535 families that allegedly suffered from the flood were registered with the board, even though in reality the number was significantly less.

The audit also found that 100 million roubles worth of medicines were bought - a price the Chechen Medical Insurance Fund increased by 100%. Therefore, over 200 million roubles of government money had been illegally spent.

(U/E,T,B)