Police detained the head of the pension fund for the southern Kabardino-Balkaria republic on suspicion of stealing more than 68 million rubles ($2.1 million) of state money, local police said in a statement.
Local pensions chief Khasanbi Sheozhev was detained late Saturday afternoon in Nalchik, the republic's capital, police said, adding that the investigation was still ongoing.
Police believe Sheozhev defrauded the state by selling a firm owned by a relative before buying it back with pension fund money at a jacked-up price, pocketing the difference, Interfax reported.
Before becoming pensions chief in 2004, Sheozhev served as finance minister and economic development and trade minister for the mountainous Caucasus republic bordering Georgia.
Sheozhev is not the first high-ranking official from Kabardino-Balkaria to be investigated for economic crimes in recent weeks.
On July 5, official Investigative Committee spokesman Vladimir Markin said that a criminal case had been opened against the head of the republic's treasury on charges of misspending millions of rubles of federal money, according to Interfax.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
