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Audit finds record $22.7 billion missing from budget

Published: 12 January, 2012, 20:36

Corruptuion is on the rise in Russia

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TAGS: Russia, Prime Time Russia, Corruption, Anya Fedorova, Neil Harvey, Thabang Motsei


Russia's ministries appear to have broken their already impressive record for rampant corruption.

An Accounts Chamber check has revealed that last year saw more money go missing from the budget than in any previous audit.

Since 2008 the sums embezzled have grown sevenfold: while back in 2008 the figure was 96.6 billion rubles ($3.2 billion), it is now 718.5 billion rubles ($22.7 billion).

More than 50 per cent of the missing money was wasted on Budget Code violations, with another 35 per cent on violations in state procurements. The underlying reason behind those wastes, the Accounts Chamber head said, is bureaucracy as each governmental order goes through hundreds if legal bodies, which breeds corruption. The functions each legal body performs are often unclear.

In total, 176 cases were referred to law enforcement agencies in 2011, with 72 criminal cases and 23 administrative cases being launched into them.

Since his election in 2008 the fight against corruption has been a cornerstone of President Medvedev’s domestic policy. New laws obliged officials to declare their incomes and assets and imposed tougher sanctions and penalties for bribe-takers and givers. The Ministry of Justice encourages citizens to report bribe-takers to the authorities.

However, research published in July 2011 revealed that the average bribe in Russia has increased almost sevenfold – to a whopping $10,000.

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