South Russia power company suspected of embezzment

An audit by the prosecutor's office discovered thesuspected theft of more than 70 million rubles by a power company in south Russia's Karachay-Cherkessia. A criminal case was initiated as a result, the press service of the Prosecutor General's Office reported. Joint activities were carried out by the department of combating crimes in the area of taxation of the Ministry of Internal Affairs of Karachay-Cherkessia and the prosecutor's office of the Republic.

"It is established that “Karachayevo-Cherkesskenergo” public corporation provided to the headquarters of the republic tariffs and prices to match the tariff for electricity supplied to consumers. Thus, the documents reflected the non-existent cost calculations with" Yurenergokonsalt " company allegedly supplying electricity", the statement reports.

According to the agency, in effect, "Yurenergokonsalt" has failed to fulfill its obligations, and transactions between companies were fictitious.

"The revealed fact led to the artificially high cost of" Karachaevo-Cherkesskenergo"and the establishment of inflated price premium on the tariff of electricity supplied to consumers. Total amount of money stolen in this way from citizens exceeded 70 million rubles”, the prosecutor's office stated.

The materials of this check are directed to the investigating authorities to address the issue of a criminal case against the director and accountant of the company. According to the results of the review the criminal case will be initiated for the crime under Part 4 of Art. 159 of the Criminal Code (fraud committed on a large scale).