Railroad Ministry misuses almost $15m

The Russian Audit Chamber checked the Russian Railroad Ministry and found violations of budget legislation in 2001-2002 regarding the use of funds for supporting the Ministry's central staff. The Ministry used RUR464.4m (about $14.61m) over nine months in 2002, which was six times more than the budget had allocated for this purpose, the information and public relations department of the Chamber reported. According to the Chamber, RUR441.9m (about $13.90m) in expenditures were not reflected in accounting statements of the Ministry.

Additionally, the Railroad Ministry continued renting out commercial premises, which were federal property, without coordinating it with the Property Ministry. Over nine months in 2002, the renters did not pay RUR11.1m (about $349,243) to the federal budget.

The Chamber's specialists believe that the Railroad Ministry has not developed a plan of activities for eliminating the omissions found by the 2001 inspection. The results of the check were sent to the government, the Property Ministry, the Finance Ministry, the General Prosecutor's Office and the Interior Ministry.