The management of the plant in Volgograd detained after problems with defence contracts

Six representatives of the metallurgical plant “Red October” in Volgograd detained on suspicion of embezzling tens of millions of dollars, reports TASS citing a source in law enforcement bodies of the region. It is one of the largest manufacturers of metal, draws the attention of the Agency.

According to the interlocutor of the Agency, detained the General Director, two accountants, a lawyer of the company, and also CEO and Executive Director of the basketball club “Red October” (their surnames are not called). They are currently in the detention center, the source said.

The investigation of the case by investigators of the main investigation Department of the MIA in Moscow, said TASS. Earlier, the regional Prosecutor’s office reported on the approved plant irregularities in the supply of products for the needs of the state defense order, the Agency reminds.

April 4, 2016 Volgograd office of public Prosecutor on supervision of execution of laws on especially regime objects has reported that it has found violations of terms of delivery of products under the state defense order of the “red October” and LLC “Volgograd VGTZ engineering company”. The reasons for that was improper organization of the production process, noted in Prosecutor’s office, which has not been delivered more than 3 thousand units of equipment.

In these cases in respect of three officials were running the proceedings on an administrative offense under part 1 of article 14.55 the administrative code of Russia (violation of the conditions of the state contract under the state defense order).

Earlier “Kommersant” has found out that VMZ “Red October” in recent months there has been dispute over the pricing of products supplied under the state defense order for “ECMB “OKBM”. The discrepancies amount to about 49 million rbl. at a total contract price of 501 million rubles According to the publication, the ex-CEO of the company Alexey Fomenko planned to seek assistance in resolving the issue to Deputy Prime Minister Dmitry Rogozin. At the end of March Fomenko has left his post.

The day before, according to “Kommersant”, at the metallurgical plant have passed the investigation. The FSB and the interior Ministry have made seizure of documents in accounts Department and the offices of top managers, conducted interviews with some employees.

A source close to the company told the newspaper that several people were evacuated from the territory of “red October” in the police car.

“Red October” is one of the largest manufacturers of metal products special steel grades for automobile and aviation industry, chemical, petroleum, power engineering and oil industry in Russia. The company produces more than 900 unique grades of steel for special purposes and more than 3000 kinds of profile steel. The company’s share on the Russian market for the production of stainless steel grades is more than 40%, the products are exported to 30 countries of the world.