Philharmonic crisis

by Yevgeny Krishtalyov, exclusively for VK

A scandal concerning a historic property in the capital of Kabardino-Balkaria, Nalchik, has turned into an outrageous criminal case that the mass media and the public will discuss for a long time. It is a precedent for the Caucasus. High-ranking officials have been arrested. It is one of the first significant achievements of Russian Interior Minister Vladimir Kolokoltsev.

The Tverskoy Court of Moscow ordered arrest of three Kabardino-Balkarian officials, including relatives of the region’s leader Arsen Kanokov. Vladimir Zhamborov, head of the Presidential Administration of Kabardino-Balkaria, his brother Ruslan, deputy head of the Ministry for Property of the republic, and Khabdulsalam Ligidov, Minister for State Property and Land Relations of Kabardino-Balkaria.

The officials were accused of frauds with real estate, initiated by businesswoman Madina Khatsukova. The entrepreneur was detained and taken to Moscow for questioning.

The police say that the officials organized privatization of the regional philharmonic center at the Nalchik center. The building worth 20 million rubles was sold at an auction for only 1 million rubles.

Lawyers of the suspects say that the expert evaluation, the results of which were used in the case, was based on photos. In reality, the building is in poor condition and its price does not exceed a million rubles.

Arsen Kanokov ordered an administrative check of the privatization procedure. His press service makes the same statements as the lawyers. It says that electronic media and press demonstrate the real estate that has nothing to do with the philharmonic in Nalchik. “Most media reports on searches and arrests of officials in Kabardino-Balkaria base on false facts, with cases of photos of buildings and people that have nothing to do with the issue”, says the message. They publish photos of a Music Theater and the State Cinema and Concert Hall in Nalchik. What the case is about is the building built before WWII used for the philharmonic, the press service says.

The police say that Khatsugova wanted to take over the building with 500 square meters of space worth 20 million rubles. The deputy minister for property received a verbal order of the head of the Presidential Administration to put the philharmonic off the list of buildings of the Ministry for Culture and privatize it for one million rubles. The staff of the philharmonic was moved out. Khatsugova purchased the building without an auction on April 17, 2012.

Media say that investigators found objects and documents proving guilt of the suspects. No detailed information about the documents has been published. The safe of the administration head contained ammo to a Makarov pistol. The safe of the deputy minister for property had a Walter, Smith & Wesson and a Korovin pistol.

Presence of weapons is an essential fact, but not the determining one. Officials do need weapons for self defense, living in a republic of the North Caucasus with security problems. What is more important is the fate of the region’s head. It is a major strike on the reputation of the president.

Arsen Kanokov is respected in the republic and has been in charge of its since autumn 2005. He became popular as a philanthropist and sponsor of various cultural programs. He built a cathedral mosque in Nalchik, opened the Memorial Arc for the 450th anniversary of the republic’s joining Russia, a memorial to victims of the Caucasus War, reconstructed the Inturist Hotel and the Elbrus Restaurant. Arsen Kanokov sponsored the Spartak-Nalchik FC.

The republic is developing programs for restoration of tourism potential of Elbrus. many analysts say that it is one of the reasons for arrests and police inspections in Nalchik. They are searching for something and use the philharmonic building as an excuse, or better to say a prologue for even greater frauds in tourism. Some say that Elbrus is experiencing a property redistribution for the upcoming investments for the Northern Caucasus Resorts. It is clear that the scandal around the philharmonic will be dropped. Otherwise, the suspects would not end up in Moscow that fast.