Posts Tagged ‘serdyukov’

18
November 2012

Russians Look Askance at Anticorruption Drive Even as New Scandals Arise

The New York Times

In the past, President Vladimir V. Putin has always been reluctant to expel or prosecute high-level officials, despite widespread complaints about corruption. So the mushrooming scandals are unusual, raising questions about what has changed.

There is little doubt that the Kremlin has been battered by opposition campaigns highlighting official corruption. Political strategists, searching for ideas powerful enough to consolidate the country around Mr. Putin, may seize on fighting corruption as a Kremlin effort, and recent steps hint at a populist push to expose and punish guilty officials.

“A tough, uncompromising battle with corruption has begun,” announced Arkady Mamontov, a pro-government television host, in a much-hyped documentary titled “Corruption” that, though it was broadcast close to midnight on Tuesday, attracted nearly 20 percent of the television audience. “In the course of the next months, we will see many interesting things. The main thing is that we should not stand aside and watch what is happening, but take an active part in it.”

Political observers have watched the anticorruption drive curiously, debating where it might be headed, and especially whether, for the first time since Mr. Putin came to power, high-ranking officials would face prosecution. On Monday, the newspaper Vedomosti declared that Moscow was witnessing the beginning of a “cleansing of the elite” — a flushing out of a political system that lacks other mechanisms of renewal, like competitive elections. Others were skeptical that the effort would reach beyond midlevel officials.

“It cannot become an overall ideology, because Putin’s system is dependent on corruption — on corruption as a form of management and a guarantee of loyalty from officials,” said Aleksei Navalny, a blogger and anticorruption activist. “They will not kick out from under themselves the stool that they are standing on.”

Last week, it seemed the Kremlin had not decided how far to take its anticorruption drive. On Wednesday, Russian news agencies reported that the highest-level official to be implicated — the former defense minister Anatoly E. Serdyukov — had been offered a comfortable new job as an adviser to the director of Rostekhnologii, a company that produces and exports high-tech equipment.

The news prompted waves of angry commentary from those who had hoped Mr. Serdyukov would be prosecuted, including Adm. Vladimir Komoyedov, who heads the Defense Committee in the lower house of Parliament.

“There is a signal in the navy that means ‘man overboard,’ ” he said. “We all thought the former minister had fallen overboard, and his fate would be sorrowful. But it turned out he was still inside the submarine.”

Others said it was more evidence that Mr. Putin does not give up his own. By way of commentary, the newspaper Kommersant posted a still from “The Godfather” in which the Mafia don embraced one of his lieutenants, along with a quotation: “Friendship is everything.”

Officials the next day denied that Mr. Serdyukov had been offered the job. Asked about the case at a news conference, Mr. Putin confirmed that, but said it would not be a problem if Mr. Serdyukov was given a new position, since he has not been formally accused of wrongdoing.

“There is a generally accepted practice that a person is innocent as long as a court has not proven his guilt,” he said. “If he wants to gain work anywhere, I don’t think that we should prevent that. He has the right to work.”

The Kremlin faces a dilemma in resolving Mr. Serdyukov’s case. Russians largely supported Mr. Serdyukov’s dismissal, and some speculated that the anticorruption effort was bolstering Mr. Putin’s approval ratings. The firing was particularly popular among prosperous urban males — a population that has turned away from Mr. Putin in recent years, and which he is no doubt eager to win back. But a prosecution would shine light on a deep and pervasive flaw of Mr. Putin’s system, with unpredictable consequences.

Mr. Navalny said he was “cautiously optimistic” that information about corruption had begun to emerge into public view, even if high-level officials were not punished.

As they broadened the investigation into the Defense Ministry, federal investigators have reopened an embezzlement investigation singling out a Moscow tax official close to Mr. Serdyukov, Vedomosti reported Wednesday, citing unnamed law enforcement officials.

The tax official, Olga Stepanova, was also at the center of a notorious case: the lawyer Sergei L. Magnitsky accused her of embezzling $230 million from the Russian Treasury by filing false corporate tax returns. Shortly thereafter, Mr. Magnitsky was detained on tax evasion charges. He died in pretrial detention in 2009, at the age of 37, and the authorities have consistently denied that Mr. Magnitsky’s allegations had any merit.

“Factually, this looks like an acknowledgment of relatively obvious things,” Mr. Navalny said. “I am happy that these facts are coming out, and that it will now be harder to escape from accusations, including ours.”

There will almost certainly be more corruption cases in the coming months. One especially eager official is the deputy prime minister, Dmitri O. Rogozin, who wrote on Twitter: “I will insist that corruption in defense procurement will be equivalent to treason! Have they lost their fear? We will find them!”

Sergei V. Stepashin, the chairman of the federal accounting chamber, Russia’s main auditing body, told the news service Interfax on Wednesday that a trillion rubles a year, or around $31.5 billion, is being siphoned from Russia’s budget in the course of state procurement — about one-fourteenth of the entire budget, he estimated.

Mr. Mamontov’s documentary sketched out one scheme that made this possible: go-betweens at the Defense Ministry, he said, would buy low-quality coal at rock-bottom prices, then resell it through shell companies back to the ministry at a tenfold markup.

He then swung his focus to one person suspected of being a culprit: Yevgeniya Vasilieva, a 33-year-old lawyer at the ministry who was shown in photographs carousing in a silver sequined dress. The camera lingered over Ms. Vasilieva’s 13-room, $10 million Moscow apartment and five boxes that held $3 million worth of jewelry.

After the show was broadcast, Igor Bunin, the director of the Center for Political Technologies in Moscow, said he believed fighting corruption would “become one of the elements of the regime’s ideology,” and that more films — and more prosecutions — were on the way.

“You need to understand that when you start such a battle with corruption, it touches the whole political class and, of course, leads to direct political consequences, a new political system,” Mr. Bunin said in an interview with the radio station Kommersant FM. микрозайм онлайн займы на карту без отказа https://zp-pdl.com/get-quick-online-payday-loan-now.php https://zp-pdl.com/get-a-next-business-day-payday-loan.php займ на карту

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16
November 2012

U.S. House to take up Russian rights bill as another graft case comes to light in Moscow

The Washington Post

As the U.S. House of Representatives prepares to take up legislation known as the Magnitsky bill this week, a newspaper reported Wednesday that a key figure in the Russian corruption case that inspired the measure is involved in a two-year-old criminal investigation.

Olga Stepanova was the head of a tax office that approved a fraudulent $230 million refund in 2007, a scheme revealed by whistleblower Sergei Magnitsky before he was arrested. He died in jail three years ago Friday. Now, the newspaper Vedomosti reports that criminal investigators have been following a separate tax-refund case — from 2009, worth $130 million — in which Stepanova was a principal actor.

The Vedomosti article was sparked by the burgeoning corruption cases that have made news here over the past few weeks. They began with an investigation in late October into Russia’s Defense Ministry that has claimed the job of one of President Vladimir Putin’s most loyal colleagues, Anatoly Serdyukov.

Stepanova worked for former defense minister Serdyukov when he was head of the tax agency, and she later transferred to work under him at the Defense Ministry. She no longer works there and has not been directly linked to the Defense Ministry scandal, which involves the sale of millions of dollars worth of property at rock-bottom prices.

Andrei Piontkovsky, a political analyst, suggested Wednesday that without Serdyukov’s protection, Stepanova may have been sacrificed in a last-ditch bid to mollify the West and perhaps even derail the House bill, which would put strict banking and visa sanctions on Russian officials associated with the Magnitsky case.

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05
November 2012

Police raid on Moscow love nest splits Putin’s inner circle

The Sunday Times

A dawn police raid at the luxury Moscow flat of the blonde director of a defence procurement agency at first seemed merely the latest in a long line of corruption scandals to hit the Russian government.

But when news broke that a bleary-eyed Anatoly Serdyukov, the defence minister, had opened the young woman’s front door when police came knocking, it became clear that this was altogether bigger news.

The titillating detail seemed to break the Russian media’s traditional refusal to delve into the private lives of politicians.

It appears that the scandal became public because Serdyukov, 50, is married to Yulia, the daughter of Viktor Zubkov, 71, a deputy prime minister, a close ally of President Vladimir Putin and one of the most powerful men in Russia.

Serdyukov, who is reported to owe his meteoric rise from furniture salesman to minister to the influence of his father-in-law, incurred Zubkov’s wrath by allegedly having an affair with Yevgenia Vasilyeva — the official whose flat was raided — and in the process humiliating his daughter.

The case is mushrooming into an embarrassing scandal that may lift the veil on corruption, nepotism, selective justice and bitter Kremlin infighting under Putin’s rule.

Prosecutors searched Vasilyeva’s flat for several hours as part of a £60m fraud investigation into Oboronservis, a state-owned company that manages supplies to the armed forces. Vasilyeva, 33, who was until recently the head of the defence ministry’s vast property portfolio, is one of the company’s directors.

Officers from the prosecutor’s investigative committee said they had seized documents at her flat and confiscated more than £60,000 in cash plus antiques, paintings and hundreds of items of jewellery, including many diamonds. They also searched Oboronservis’s offices and have charged five people who, they allege, skimmed off large personal profits by using the company to sell state assets at far below their market value.

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11
May 2012

Russian paper details business interests of defence minister’s associates

Vedomosti

Article by Roman Shleynov, Dmitriy Kazmin, Filipp Sterkin, and Aleksey Nikolskiy: “He Is a Machine, Not a Person”

There have been surprising twists and turns in Minister of Defense Anatoliy Serdyukov’s life. He came from retailing to impose order in the tax service and from a civilian finance job to reform the army. Generals complain that he taunts them as little green men.

Zubkov’s son-in-law

When Serdyukov came to the Petersburg Tax Inspectorate in 2000 he was already an established furniture retailer. After graduating from the Accountancy and Economics Faculty at the Leningrad Institute of Soviet Trade in 1984 Serdyukov went into the army. He served as a conscript in the 85th Motorized Infantry Division Communications Battalion in Novosibirsk. At that time, conscripts with higher education were offered the chance to enroll on a reserve lieutenant training course after nine months. After serving for 18 months they would be discharged with an officer’s rank. This was also the path that Serdyukov chose, a former officer in the Defense Ministry central apparatus says, clarifying that in the event of a war Serdyukov would have been eligible to be drafted to serve as a regimental military commissary chief.

But Serdyukov became a strictly peacetime retailer — after leaving the army he went to work for the No. 3 Lenmebeltorg furniture store in Petersburg. It was within the Lenmebeltorg system that he rose from assistant accountant to become director and joint owner of the Petersburg industrial trading company Mebel-market formed on the basis of Lenmebeltorg.

A possible contributory factor to Serdyukov’s transition to state service was his marriage. In 2000 he married Yuliya Pokhlebenina — the daughter of Viktor Zubkov. Zubkov was a party official during Soviet times, he became Vladimir Putin’s deputy in the Petersburg Mayor’s Office in 1990, and he then moved to the tax service – by 1999 he had risen to become deputy minister for taxes and levies while retaining the post of head of the Tax Service’s Petersburg Office.

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