Defense corruption in Russia

by: Matthew Potter
October 15, 2008

Category: Contract Awards, crime, development program, IT, Russia | RSS 2.0

The Russian Ministry of Defense announced that contract fraud was perpetuated on the Russian government through manipulation of contract evaluation and awards. The Ministry had contracted with the state owned 26th Central Scientific Research Institute to manage a security software system. The Research Institute awarded the contract to a company that turned out to be made up of people on the contract evaluation board. Up to 20 M rubles may be involved in this case where little or no work was done and the money was moved around via false contracts. In the US when a Source Selection Evaluation Board (SSEB) is established all the members are investigated for such conflicts, although there have been cases of outright bribery of members for a favorable contract award.

For more see Komersant’s website.

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