RusHydro launches internal audit over $33m embezzlement

Russian hydropower generation company, RusHydro is has launched an internal audit into an alleged $33m fraud uncovered at the company.

An Internal Ministry statement said that the said funds were sanctioned by for the construction of the Zagorsk Hydroelectric Pumped Storage Power Plant-2 in the Moscow Region, reported state news agency RIA Novosti.

The misappropriations were carried out through schemes involving a number of fly-by-night firms, added the statement.

Russian President Vladimir Putin had ordered Interior Minister Vladimir Kolokoltsev earlier this week to investigate embezzlement at RusHydro.

The ministry’s economic security department found that, Hydrostroi, the project’s general contractor, signed fake subcontracts with sub-companies and money was stolen after being transferred to their accounts.

Putin particularly expressed disappointment at RusHydro’s chief Evgeny Dod for failing to act immediately.

Dod told media that RusHydro will respond to the accusations by 20 February 2013.

“All cases of dishonesty exposed during the check will be immediately transferred to the competent bodies while personal relationships, the record of work and previous merits – all this will be annulled,” Dod reportedly told the company’s board.