MORE THAN 2.3 BILLION RUBLES OF ILLEGAL INCOME WAS RETURNED TO THE STATE BUDGET

The funds were obtained as a result of collusions at auctions for the purchase of construction materials (1.4 billion rubles) and the supply of medicines and medical devices (900 million rubles)

On October 20, the former Mayor of Vladivostok, his brother and their affiliated companies forcibly returned to the state budget more than 1.4 billion rubles received as a result of collusion.

It should be reminded that in March 2020, the Court of Sovetsky District of Vladivostok issued a decision to satisfy the claim of the Prosecutor General's Office of the Russian Federation against the former Mayor of Vladivostok, his brother and the former Head of the municipal unitary enterprise (MUE)  Roads of Vladivostok, as well as to 6 companies controlled by the ex-mayor's family, to recover more than 1.4 billion rubles to the state income illegally obtained in 2008-2016 under municipal contracts.

Previously Vladivostok Regional Office of the FAS Russia has revealed anti-competitive agreement between the City Administration of Vladivostok, Department of roads and improvement of Administration of Vladivostok, MUE Roads of Vladivostok and Vostokcement LLC, which led to restriction of competition in the procurement of construction materials for the maintenance of urban road infrastructure. Large administrative fines were imposed on the guilty companies.

The Investigative Committee of Russia enquired a criminal case against the former Mayor and his accomplices, they were sentenced to long terms of imprisonment.

“Transactions made as a result of anticompetitive agreements can be considered contrary to the principles of law and order, and all received under them can be recovered to the state revenue. Now every violator sees that this is more than real. As a result of joint actions of the Prosecutor General's Office, law enforcement and antimonopoly authorities, the budget received more than 1.4 billion rubles,” commented Andrey Tenishev, Head of the Anti-Cartel Department of the FAS Russia.

In June 2020, participants in anticompetitive agreements in Novosibirsk during the investigation of criminal cases voluntarily reimbursed the state for damages in the amount of more than 900 million rubles.

It should be reminded that in 2018 the Novosibirsk RO of the FAS Russia revealed five collusions when bidding for the supply of medicines and medical devices, the customer for which was the Federal state budgetary institution “NMRC named after Academician E.N. Meshalkin”.

Materials sent by the FAS Russia to the address of law enforcement authorities became a reason for initiating criminal cases under the articles “Restriction of competition”, “Fraud” and “Money Laundering”* when purchasing for the needs of the Federal state budgetary institution.

“In cooperation with law enforcement authorities, we are implementing a List of instructions from the President of the Russian Federation** to suppress cartel activities. Participants in such collusions always face a retribution – multimillion fines for companies and imprisonment for officials. Now they are obliged to return to the state illegally obtained income – voluntarily or under the court decision. And we will continue this practice,” emphasized Andrey Tsarikovskiy, State-Secretary – Deputy Head of the FAS Russia.

* Articles 178 of the Criminal Code (Restriction of competition), 159 of the Criminal Code (Fraud) and 174.1 of the Criminal Code (Legalization (laundering) of money or other property acquired through a violation).

** List of instructions of the President of the Russian Federation No. 1525 of 05.08.2017.