Rostelecom accused of misappropriating budget funds

Russia’s national telecom operator Rostelecom has been accused by the Prosecutor’s Office of involvement in the misappropriation of 300 million rubles, approximately $1 million, from the government funded Electronic Russia program.

In particular, the cost for software and hardware acquired for the program was overestimated by 270 million rubles. The equipment was purchased by the Ministry of Communications and Mass Media through Rostelecom and “a number of middlemen firms,” the Prosecutor’s Office said.

Rostelecom has denied the accusations, insisting that it was in full compliance with the law when putting the program into effect and organizing the corresponding tenders. The operator suggested that evidence it provided to the Prosecutor’s office had not been sufficiently taken into account. It also emphasized that the Electronic Russia program has already allowed a number of government bodies throughout Russia to save considerable expenditure.

Rostelectom was appointed in by Russian PM Vladimir Putin as the sole executor of the Electronic Russia program.

Rostelecom e-government project director Valery Zubakh was dismissed in March, 2011, along with Konstantin Noskov, the coordinator of the Electronic Russia program in the Russian government, according to Russian business daily Vedomosti. The reasons for the dismissals were not disclosed, but the National Audit Office had criticized the way the Electronic Russia program was implemented.

Sources: Prosecutor’s office, Rostelecom , Vedomosti

Topics: E-government, Legal, Legal matters, Mobile & Telecom, News, Operators & Networks
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