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The fight against embezzlement of funds allocated for the development of radar systems and potential weapons continues in Russia.
Russian military websites reported on October 17 that the country's authorities are investigating allegations of corruption against a number of senior employees of the AL Mints Institute of Radio Engineering, one of the leading enterprises in the Russian defense sector. The Investigative Committee of the Russian Federation has opened a criminal case on the charge of especially large-scale fraud against the Director General of the Defense Solutions department Vyacheslav Lobuzko and Deputy Chief Designer Vladimir Finkelshtein. Both are accused of embezzling more than 130 million rubles (about 1.3 million USD) during the implementation of a defense contract.
According to the investigation, in 2013, the Russian Ministry of Defense signed a contract with the Radio Engineering Institute to develop a new type of equipment worth more than 2 billion rubles. However, from 2014 to 2016, the two defendants Lobuzko and Finkelshtein committed fraud by providing false documents and producing a substandard product sample, then embezzling more than 130 million rubles.
The incident has raised concerns about the cause of delays in major Russian defense industry programs.
